Saturday, October 25th8.7°C
23888
23488

TransForce bids to acquire Ontario trucking company Contrans for $495 million

MONTREAL - TransForce Inc. (TSX:TFI) has a friendly offer to acquire Contrans Group Inc. (TSX:CSS) for $495 million in cash.

The board of Contrans, a trucking company based in Woodstock, Ont., is unanimously supporting TransForce's offer of $14.60 per share — on the condition that at least two-thirds of the outstanding class A and B shares are tendered.

In addition to the money from Montreal-based TransForce, Contrans would pay a special dividend of 40 cents per share, bringing the total amount that its shareholders could receive to $15 per share.

The funds for the special dividend would come from the recent sale of the Contrans waste transportation segment.

TransForce announced the offer Thursday, after it issued second-quarter results.

TransForce reported it had $37.3 milion of net income in the three months ended June 30, or $62.8 million after excluding a non-cash asset impairment charge related to its previously announced exit from its Canadian drilling rig moving business.

TransForce's revenue for the second quarter was $889.1 million including fuel surcharges, up from $792.3 million a year earlier. The negative impact from TransForce's phased withdrawal from the rig moving business was more than offset by $102.3 million in addition revenue from the acquisitions of Vitran, Clarke Transport and Clarke Road Transport.

In the second quarter of 2013, TransForce had $26.6 milion or 28 cents per share of net income.

The company has scheduled a conference call at 9 a.m. Friday to discuss the quarterly results and the Contrans deal.

TransForce operates across Canada and in the United States through a network of operating subsidiaries, including the Canpar parcel delivery service, trucking companies and specialized services including waste management.

Contrans is a freight company, with about 1,400 power units and 2,600 trailers under management — making it one of the Canadian trucking industry's largest players.

The Canadian Press


Read more Business News

23658


Recent Trending




Today's Market
S&P TSX14543.82+56.99
S&P CDNX805.45-3.15
DJIA16805.41127.51
Nasdaq4483.715+30.923
S&P 5001964.58+13.76
CDN Dollar0.8901-0.0003
Gold1231.20+2.10
Oil81.02-0.73
Lumber336.40+6.80
Natural Gas3.631+0.009

 
Okanagan Companies
Pacific Safety0.105-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.07+0.015
Anavex Life Sciences0.194-0.004
Metalex Ventures0.045+0.005
Russel Metals33.39+0.23
Copper Mountain Mining2.03-0.05
Colorado Resources0.145+0.005
ReliaBrand Inc0.012-0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.445+0.035

 



23433

FEATURED Property
1982558#5 4141 Lakeshore Road
3 bedrooms 2 baths
$414,995
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...


We can get on together

I was in LA this week. I witnessed such crazy and unusual circumstances as I strolled along Hollywood Blvd and Sunset Blvd. A far cry from sleepy Peachland in the Okanagan! The strange thing was, I f...


Weakening global growth worries

The Big Picture Growth worries persist Worries about weakening global growth and its potential impact on the US economic recovery roiled markets around the globe this week. Europe continues to be the ...

_








Member of BC Press Council


23091