Deal gives transportation and logistics provider locations in Texas, Iowa and Tennessee
Canada Cartage is expanding into the U.S. with the strategic acquisition of The GTI Group, a Montreal-based freight conglomerate.
The move gives Canada Cartage offices in Houston, Des Moines, Iowa, and Franklin, Tennessee, and could potentially boost its revenue to $1 billion annually, according to a news release.
Based in the Toronto area, Canada Cartage is one of the largest transportation and logistics operators in Canada. The company has about 4,000 tractors and trailers, 4,000 employees and a network of 33 terminals, fulfillment centers and cross-docks across Canada.
“We have been looking for an opportunity to enter the U.S. market for several years, but have been waiting for the right acquisition to do so,” Canada Cartage President and CEO Jeff Lindsay said in a statement. “The management team at GTI have built a service offering and platform that prioritizes the customer the same way we do at Canada Cartage, and we are confident this is the right team for us to partner with to build and expand our North American presence.”
The GTI Group, founded in 1992, offers clients end-to-end freight management solutions, brokerage services, expedited freight services, specialty solutions for oversize/overweight industrial freight and drayage services throughout Canada and the U.S. The GTI Group subsidiaries include Precision Specialized, Jetco, Nomade Transport and Foxconn Logistics.
“We see tremendous opportunities with this transaction for our people, our customers and the future growth of our business,” Richard Lafreniere, president and CEO of The GTI Group, said in a statement.
Terms of the acquisition were not disclosed. The deal is expected to close by the end of the year. GTI will continue to operate under its existing brand and management structure.
In 2022, Canada Cartage was acquired by Abu Dhabi-based Mubadala Capital, a United Arab Emirates state-owned investment fund.