Vitran to buy Milan Express LTL biz

TORONTO – Canadian LTL powerhouse Vitran Corp. says it is expanding its southeast U.S. presence with the acquisition of Tennessee-based Milan Express‘ LTL division.

The move expands Vitran’s American LTL footprint across 10 states, stretching from the to the deep south U.S..

Specifically, Milan gives Vitran more density in five central states, says CEO Rick Gaetz.

"The acquisition of the Milan Express LTL operation is another critical component in Vitran’s strategy of establishing a unique regional LTL network that serves the entire North American market," stated Gaetz. "We look forward to working with our new employees and providing a new expanded quality service offering to the customers of Milan and Vitran."

Terms of the deal, expected to close Feb. 19, were not disclosed.

For the year ending December 31, 2010, Milan’s LTL operation generated revenues of $70 million.

Vitran will add 19 terminals to its network as part of the deal.

Milan Express was founded by Tommy Ross and his son John in 1969.

"The decision was not easy for us," said the senior Ross in a press release. "We considered many options, but we believe this transaction with Vitran is the right opportunity. We are very pleased with the new Vitran relationship as it not only offers stability to the majority of our employees, but I feel it gives both our employees and our customers a platform to grow in the months ahead."

The Ross family will keep the company’s truckload, logistics and warehousing divisions.