Canadian LTL conglomerate Vitran Corp. is planning to buy Sierra West Express, a Nevada-based, regional LTL carrier with operations in the Western U.S., including terminals and coverage in California, Nevada and Arizona, pending final approval of Vitran’s board of directors.
Terms of the sale of Sierra West Express, which generated revenues of $16 million over the last 12 months, weren’t disclosed. However Vitran expects the deal should have a positive effect on its 2006 earnings and also expects to wrap up the sale by January.
“The acquisition of Sierra West Express would be another critical component in Vitran's strategy of establishing a unique, regional LTL freight transportation network that covers and serves the entire North American market,” said Vitran’s president & CEO Rick Gaetz.
“[The purchase] of Sierra West marks Vitran’s initial move into the Western U.S., and our plan, similar to our purchase of Chris Truck Line earlier in 2005, is to both expand and enhance Sierra West’s regional operations and subsequently cross-market LTL and logistics services to our existing customers as well as Sierra West’s customers,” he added.
