- Acquisition of Crane Transport expands Titanium’s North American footprint through the addition of approximately 200 U.S.-based trucks, two strategically located terminals in Georgia and Alabama, and approximately US$60 million in top line annual revenue.
- Strategic Acquisition will provide Titanium with a critical mass of assets in the U.S., enabling customers to access a comprehensive freight management offering driving growth in Titanium’s US-based logistics business.
BOLTON, Ontario, July 31, 2023 (GLOBE NEWSWIRE) -- Titanium Transportation Group Inc. ("Titanium" or the "Company") (TSX:TTNM, OTCQX:TTNMF), today announced it acquired the assets and equipment of Crane Transport (“Crane”) of Oakwood, GA, for a total consideration of US$53 million comprising cash, a vendor takeback loan and assumption of net debt, subject to closing adjustments (the “Acquisition”). Titanium also purchased all real estate related to Crane’s operations, including the head office terminal in Georgia, and its satellite terminal in Alabama, for an additional consideration of US$6 million. Titanium has the funds to close the transaction and does not require additional financing.
Founded in 2001, Crane Transport is a family-owned and operated business specializing in Full Truckload interstate freight transportation services. Crane generates approximately US$60 million in annualized revenue and operates approximately 200 trucks.
Ted Daniel, CEO, Titanium Transportation Group, commented, “Today’s announcement is further evidence of Titanium executing on its strategic plan and continuing to build a strong foundation for future growth in North America. The addition of Crane Transport’s full truckload business is highly synergistic within our existing network, immediately adding capacity and valuable new customer relationships. The Acquisition will allow us to expand our presence across the United States through our new strategically located terminals in Georgia and Alabama, expanding our service offerings and enabling us to offer a wide range of services including end-to-end supply chain and freight management solutions to our existing customers.”
“With the addition of Crane Transport, we see multiple near-term opportunities to enhance profitability, as well as longer-term opportunities to optimize equipment and technology towards continued growth and shareholder value creation. Crane Transport is an excellent fit for us, from a strategic and cultural point of view and I would like to welcome the Crane team into the Titanium family,” added Mr. Daniel.
Key transaction highlights:
- Titanium’s first U.S.-based asset acquisition
- Expands Titanium’s current presence in Georgia and adds Alabama to its growing U.S. footprint - positioning the Company to enhance its service offerings with Titanium branded trucks in a major U.S. transportation hub
- Titanium will own the real estate of both terminals, with each being ~11-acres
- The Acquisition is expected to be accretive after integration, which management expects to be completed in approximately twelve months.
- This acquisition continues to expand Titanium’s presence in the US southeast’s freight alley, which includes North Carolina, South Carolina, Tennessee, Georgia and Alabama, where a significant portion of this region’s economy is driven by transportation related activities.
Danny Crane, Founder and CEO of Crane Transport, noted, “I am pleased to have the Crane team join the Titanium family, I feel the business and culture of Titanium is a perfect fit for our group moving forward. I am confident that Titanium’s strong platform and growth strategy will be a perfect fit for Crane. Their focus on innovation and technology, as well as culture will provide opportunities of growth for our employees, while continuing to deliver reliable service to customers, every mile of the way.”
2023 Guidance
Based on the current economic environment and the Company’s outlook for the remainder of the year, Titanium is providing the following updates to its guidance, which include the partial year contribution from Crane.
- Consolidated Revenue is expected to be between $450 to $470 million compared to the previous expectation of $500 million to $520 million. The change in revenue is being driven by a reduction in fuel surcharge due to decreases in fuel prices, and modest volume as well as transactional pricing contraction from recessionary market pressures.
- Adjusted EBITDA Margin: 10.5% to 12.5% (previously 9.5%-11.5%)
Transaction Announcement Conference Call
Management of Titanium will host a conference call today, July 31, 2023 at 8:00AM ET to discuss the transaction. Media, analyst and shareholders and interested parties can access the call by dialing 1-888-575-5167(North America) or 1-416-764-8687 (International).
About Titanium
Titanium is a leading North American transportation company with asset-based trucking operations and logistics brokerages servicing Canada and the United States, with approximately 1000 power units, 3,300 trailers and 1,300 employees and independent owner operators. Titanium provides truckload, dedicated, and cross-border trucking services, logistics, warehousing and distribution to over 1,000 customers. With its first U.S. acquisition, Titanium has established both asset-based and brokerage operations in Canada and the U.S. with eighteen (18) locations. Titanium is a recognized purchaser of asset-based trucking companies, having completed thirteen (13) transactions since 2011. Titanium ranked among top 500 companies in the inaugural Financial Times Americas’ Fastest Growing Companies in 2020. The Company was ranked by Canadian Business as one of Canada's Fastest Growing Companies for eleven (11) consecutive years. For two (2) consecutive years, Titanium has also been ranked one of Canada’s Top Growing Companies by the Globe and Mail’s Report on Business of Canada. Titanium is currently listed on the Toronto Stock Exchange under the symbol “TTNM" and “TTNMF” on the OTCQX.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking statements are provided for the purposes of assisting the reader in understanding Titanium's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking information may relate to Titanium's future outlook and anticipated events, and may include statements regarding the financial position, business strategy, budgets, litigation, projected costs, capital expenditures, financial results, taxes and plans and objectives of or involving Titanium. Particularly, statements regarding future acquisitions, the availability of credit, performance, achievements, prospects or opportunities for Titanium or the industry in which it operates are forward-looking statements. In some cases, forward-looking information can be identified by terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "project", "predict", "forecast", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts.
Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.
The forward-looking statements made in this press release are dated, and relate only to events or information, as of the date of this press release. Except as specifically required by law, Titanium undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
Contact Information
Titanium Transportation Group Inc.
Ted Daniel, CPA, CA
Chief Executive Officer
(905) 266-3011
ted.daniel@ttgi.com
www.ttgi.com
For Investor Relations
James Bowen, CFA
416-519-9442
James.Bowen@loderockadvisors.com
