16 Jun 2022
Challenger Group majority stake acquired by Fastfrate
On August 3, 2022, Fastfrate Group has completed a majority acquisition of the Challenger Group, creating a combined entity poised to address the evolving needs of supply chains. The transaction integrates Challenger Group's cross-border trucking prowess with Fastfrate's comprehensive service offerings, including LTL, TL, intermodal, logistics, and e-commerce solutions.
Ron Tepper, Chairman of Fastfrate, and Dan Einwechter, Founder of Challenger, emphasized the aligned values of entrepreneurship and customer-focused solutions, citing the merger as a strategic partnership. The consolidation unites over a century of shared experience, a workforce and owner-operators tallying above 5,000, control over 1.2 million square feet of facility space, and a fleet of over 5,500 pieces of equipment.
Challenger Group will retain its operational independence with Jim Peeples stepping in as CEO, while Einwechter will take a seat on Fastfrate's Board and continue as Challenger's Chairman. Manny Calandrino remains CEO of Fastfrate, ensuring stability in leadership across both entities.
The merger will not affect the current employees and management teams, with both companies maintaining a commitment to their core values and service excellence. Fastfrate, now with 7 companies under its banner and spanning 40 locations across North America, has positioned itself as a major player in the Canadian transportation and supply chain sectors.
Legal counsel for the deal includes Loopstra Nixon LLP for Fastfrate and Gowling WLG for Challenger, with financial advisory from Ernst & Young Orenda Corporate Finance Inc., Scotiabank, and Whiteshell Advisory Inc.