Acquisition

9 Months Ended

Sep. 30, 2011

Acquisition [Abstract]

Acquisition

5. 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. A majority of the tractors and trailers were financed by Milan with third parties. As part of the purchase, Vitran identified a third party finance company who agreed to consolidate Milan's financing and provide the Company a $6.0 million operating lease. The ownership of the assets resides with the finance company and these assets are being leased to Vitran in the form of an operating lease. 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 was due in six 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. During the third quarter of 2011, the condition for payment was met and therefore the Company paid the additional consideration due. The Company previously recorded the $0.1 million as a liability on the acquisition date. 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.