TFI International's Bold Billion-Dollar Bet On Daseke: A Game-Changer Or High-Stakes Gamble In The Transportation Arena?

Author: Nabaparna Bhattacharya | December 22, 2023 10:59am

TFI International Inc. (NYSE:TFII) plans to acquire Daseke, Inc (NASDAQ:DSKE) for $8.30 in cash per common share.

The total enterprise value of the transaction is approximately $1.1 billion. The purchase price represents a premium of 69% to the last reported sale price on December 21, 2023, and 82% to the volume-weighted average price (VWAP) of the common stock for the 30 trading days ending on December 21, 2023.

Daseke's operations include approximately 4,900 tractors, 11,000 flatbed and specialized trailers, and one million square feet of industrial warehousing space, offering comprehensive transportation and logistics solutions for major shippers. 

After the merger, Daseke will continue to operate its portfolio of brands as part of TFI's Truckload segment. 

TFI expects the transaction to be EPS-neutral in 2024 and accretive by at least $0.50 per share in 2025 based on current market conditions.

On a pro forma basis, the Truckload segment is expected to generate approximately $3.6 billion in annual total revenue, operate one of the largest comprehensive truckload businesses in Canada, and be one of the largest participants in the less-commoditized specialized equipment truckload marketplace in the U.S. 

"Daseke's deep expertise in servicing a broad portfolio of specialized and industrial end markets such as high-security cargo, agriculture, manufacturing, and construction, is critical given the relative strength of specialized market dynamics today," stated Alain Bédard, Chairman, President and Chief Executive Officer of TFI International.

The transaction is expected to close during the second quarter of 2024.

Price Action:  TFII shares are trading higher by 5.15% to $128.74 on the last check Friday, while DSKE shares are trading higher by 64.97% at $8.10.

Photo via Company

Posted In: DSKE TFII