After 40 years of building a freight capacity that exceeds 150 drivers, 140 tractors, and upwards of 400 reefers, D&D Sexton was recently acquired by TFI International.
Although the purchase structure involves Contract Freight Inc (CFI), the Missouri-based operation has been a subsidiary of the Canadian TFI International corporation since 2016. D&D Sexton will reportedly operate within the CFI wing, which also enjoys a Missouri facility.
“They (D&D) will continue to operate the way they currently do. So, all the drivers and the staff, we’ll be working closely with them to help them continue their legacy of really safe operations,” CFI president Mike Hinz reportedly said. “They also provide great service to their customers, and we’re going to help them continue to do that and maybe even build on that a little bit.”
The proximity and assets of D&D Sexton appear to serve as a seamless fit for TFI’s expansion in the Southern U.S. Headquartered in Montreal, TFI ranked as Canada’s largest less than truckload (LTL) operation fleet, and posted as the sixth-highest revenue in the LTL and truckload segment. Prior to the D&D Sexton acquisition, TFI counted 14,000 company-owned units among its assets. The outfit also works with upwards of 10,000 owner-operators on a regular basis.
“With the size of CFI, we just have better buying power, and we also have resources that maybe can complement with what D&D has and again, just do what they do but maybe just a little bit better,” Hinz reportedly said. “There will be a lot of learning for us. We can learn a ton from them. They have a 40-year legacy, and they’ve been serving the food industry for many, many years.”
Company leaders at TFI have been actively adding to the organization since 1996. Its growth involves buying more than 180 smaller outfits through 2020. The business model often positions subsidiaries such as Missouri’s CFI to absorb logistical and business oversight. D&D Sexton reportedly generates annual revenue of approximately $25 million and possesses long-standing regional relationships. That’s largely why TFI acted on the opportunity to augment its CFI footprint.
“D&D is an excellent strategic fit with the organization, culture, and business model of our CFI operating company, adding strategic capacity and valuable, longstanding customer relationships to its temperature-controlled business,” TFI CEO Alain Bédard reportedly said of the acquisition. “In addition to an overlapping refrigerated freight network, D&D brings significant experience in local and shuttle operations. We see multiple near-term opportunities around costs, routes and pricing to enhance profitability, as well as longer-term opportunities to optimize equipment and the capacity network design, taking D&D to the next level of excellence.”
D&D Sexton was established in 1981 and operates out of Carthage, Missouri. The organization was built from a shoestring budget after founder Dean Sexton borrowed $5,000 from his grandparents to purchase one truck. By 2020, the freight operation logged upwards of 13 million miles annually before Dean Sexton passed away in March.
Sources: globalnewswire.com, freightwaves.com
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