Titanium Transportation Group, a leading Canadian logistics and transportation company, is set to expand its presence in the United States through a $59 million acquisition of assets and equipment from Crane Transport. This strategic move aims to add capacity, broaden the customer base, and enhance end-to-end supply chain and freight management solutions for new and existing customers.
As part of the deal, Titanium will gain new terminals in Georgia and Alabama, including Crane's head office terminal in Georgia and a satellite terminal in Alabama. This expansion will bolster Titanium's operations in the southeastern freight alley, specifically in North Carolina, South Carolina, Tennessee, Georgia, and Alabama.
Funding for the acquisition will come from cash, a vendor takeback loan, and assumption of net debt. While this expansion is expected to fuel growth for Titanium Transportation Group, the company has revised its revenue guidance for the full year.
Lower fuel surcharges resulting from decreased fuel prices, coupled with lower pricing and volume, have led to an adjustment in revenue expectations. Titanium now anticipates revenue to range between CAD 450 million ($339.6 million) and CAD 470 million, compared to the previous target of CAD 500 million to CAD 520 million.
Despite this revised revenue outlook, Titanium Transportation Group expects its adjusted earnings before interest, taxes, depreciation, and amortization margin to improve. The new estimated range is now between 10.5% and 12.5%, up from the previous range of 9.5% to 11.5%.
This expansion for Titanium Transportation Group marks an exciting chapter in the company's growth trajectory as it solidifies its position in the U.S. market. With enhanced capabilities and an expanded footprint, Titanium is well-positioned to deliver exceptional logistics and transportation services to its customers.