Acquisition

6 Months Ended

Jun. 30, 2011

Acquisition

Acquisition

4. Acquisition

On February 19, 2011, the Company acquired selected assets of Milan Express Inc.'s ("Milan") Less-than-Truckload ("LTL") business, a private carrier headquartered in Milan, Tennessee for $7.6 million. Milan added new coverage to Vitran's network in the states of Alabama, Georgia, Mississippi, North Carolina and South Carolina. The total purchase price was allocated to the fair value of tractor, trailer and other capital assets acquired. The acquisition was financed by a $6.0 million operating lease from a third party. The remaining $1.7 million of the purchase price was financed by the Company's revolving credit facility. An additional $0.1 million of cash consideration is due in 6 months from the closing date contingent on Vitran continuing to operate in three out of the five aforementioned states that were added to the Company's existing network. The Company has recorded the $0.1 million as a liability as management believes the condition for payment will be met. The results of operations of Milan are included as part of the LTL segment in the consolidated results of the Company commencing on February 19, 2011.