Friday, February 27th1.0°C
25355
23931

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




Recent Trending




Today's Market
S&P TSX15328.88+87.72
S&P CDNX703.68+2.75
DJIA18191.11-23.31
Nasdaq4980.837-7.053
S&P 5002110.68-0.06
CDN Dollar0.7997+0.0006
Gold1203.00+6.10
Oil51.42+1.03
Lumber295.50+0.50
Natural Gas2.895-0.007

 
Okanagan Companies
Pacific Safety0.12+0.005
Knighthawk0.010.00
QHR Technologies Inc1.55-0.03
Cantex0.035-0.005
Anavex Life Sciences0.19+0.001
Metalex Ventures0.035-0.005
Russel Metals25.66+0.36
Copper Mountain Mining1.29+0.03
Colorado Resources0.15+0.015
ReliaBrand Inc0.0087+0.0017
Sunrise Resources Ltd0.05+0.015
Mission Ready Services0.215+0.005

 





FEATURED Property
2208856170 Benchview Road
4 bedrooms 2 baths
$389,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Creating your retirement vision

A vision means different things to different people. To the head of a large corporation, it’s the ability to chart a course that will deliver success (think Steve Jobs and Apple), to a shaman, i...


It's OK to say 'I'm sorry'

Photo: ContributedStand-up comedians and sitcoms have been making fun of Canadians for being polite as long as I can remember. Being known for our niceness is certainly not a bad thing and I wish more...


Are you asking the right questions?

Have you ever had this happen to you? You are in the middle of your second or third good discussion with a prospect and everything seems to be going great. The prospect seems engaged and happy to work...

_








Member of BC Press Council


24222