JOC Staff | Feb 14, 2013 2:58PM EST
Vitran Corporation has reached an agreement to sell its supply chain operation division to Legacy Supply Chain for $97 million, subject to certain working capital adjustments.
The North American transportation firm intends to use a portion of the net proceeds from this transaction to reduce its outstanding debt under its senior revolving credit facility and to support the development of its less-than-truckload business. Vitran’s board of directors is also evaluating various options for the use of the remaining net proceeds.
Vitran will repay its revolver borrowings, worth roughly $43 million, which should leave the company with $1 million in net debt, according to the Stifel Nicolaus Transportation & Logistics Research Group.
The transaction is expected to close this month.