Fastfrate closes Challenger acquisition – Truck News

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Consolidated Fastfrate on Tuesday closed its deal to accumulate a majority stake in Challenger Group, which it says establishes Fastfrate as a North American “powerhouse.”

“In the present day’s closing of the acquisition of the Challenger Group will give rise to one among Canada’s largest, most numerous and built-in trucking firms,” Fastfrate chairman Ron Tepper mentioned.

Challenger truck
(Picture: Challenger Motor Freight)

Fastfrate has added 1,200 tractors, 3,000 trailers and 300 chassis, bringing the corporate’s complete to greater than 2,000 tractors, 4,000 trailers and 900 chassis and using about 5,000 folks. It operates 45 services making it the sixth largest Canadian for-hire trucking firm in accordance with In the present day’s Trucking’s Prime 100 rating.

“When the chance arose to develop by buying a North American truckload service with a strong asset base and as properly run as Challenger, I couldn’t cross it up,” Tepper mentioned.

He feels Fastfrate has a Canadian LTL community that’s “second to none” and that shippers will likely be drawn to the corporate to maneuver hundreds via its services which can be co-located with CP intermodal terminals in each province from Quebec to B.C.

“We offer distribution companies throughout the nation together with residence supply,” mentioned Tepper.

The acquisition additionally permits Fastfrate to enrich its rail-based 3PL with Challenger’s truck-based logistics choices.

As for the way the deal will profit Challenger, firm founder Dan Einwechter mentioned “I favored it as a result of there’s no overlap of what we do. We are able to feed freight into the Fastfrate community and supply over-the-road and expedited companies.”

Fastfrate’s expansive community additionally permits Challenger to maneuver into new markets and share services.

Going ahead, Challenger will proceed to function below its present branding with present administration, Tepper mentioned. Einwechter stays a minority shareholder and can function non-executive chairman of the Challenger Group, whereas becoming a member of Fastfrate’s board.

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