TFI International Agrees to Buy Flatbed Carrier Daseke in $1.1 Billion Deal

On December 22, 2023, TFI International announced an agreement to acquire Daseke Inc., one of the largest flatbed and specialized transportation companies in North America, for $8.30 a share in cash. TFI put the total enterprise value of the transaction at approximately $1.1 billion.

Deal terms

The price was a 69% premium to Daseke's closing price of $4.91 the day before, FreightWaves reported, valuing its equity at nearly $400 million with the rest tied to about $658 million in debt. TFI said the enterprise value included the merger consideration, retirement of Daseke's preferred stock, payoff or assumption of debt net of cash, and estimated fees.

Both boards unanimously approved the deal, which still needed approval from Daseke shareholders and regulators. It was expected to close in the second quarter of 2024. TFI planned to fund it with cash and available financing and said it may keep some of Daseke's existing equipment financing in place. TFI expected the deal to be neutral to earnings per share in 2024 and to add at least 50 cents a share in 2025.

What TFI gets

TFI said Daseke operates about 4,900 tractors, 11,000 flatbed and specialized trailers and one million square feet of industrial warehousing. Daseke would keep operating its portfolio of brands within TFI's Truckload segment, which TFI projected would generate about $3.6 billion in annual revenue on a pro forma basis. FreightWaves reported that the deal would double the segment's size.

Daseke, founded in 2009, had grown through more than 20 acquisitions and produced $1.8 billion in revenue the previous year, according to FreightWaves. TFI has been a serial acquirer, with more than 90 acquisitions since 2014.

"This attractive acquisition is highly complementary to our existing operations and scales our Truckload segment into a leading North American truckload transportation and logistics business," TFI Chairman and CEO Alain Bédard said. He cited Daseke's expertise in end markets such as "high-security cargo, agriculture, manufacturing, and construction."

A possible split

TFI also said it would evaluate, over the medium term, separating into two public companies: one made up of its Truckload segment, and one made up of its less-than-truckload, package and courier, and logistics businesses. "Our immediate focus will be on improving Daseke's financial results, with the strategic consideration to follow and be ongoing," Bédard said.

What it means for drivers and fleets

For drivers at Daseke's operating companies, TFI's plan to keep the brands running signaled continuity in day-to-day operations, though Bédard's stated focus on improving Daseke's financial results pointed to operational scrutiny after closing. For flatbed and specialized carriers, the December 2023 deal put a large, acquisitive owner behind a major competitor in what TFI called the "less-commoditized" specialized equipment truckload market.