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 â€” 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 â€” making it one of the Canadian trucking industry's largest players.
Read more Business News
- BC likes to stay activeKelowna
- First Ebola case in the USWorld
- Distracted driving talesVernon / N. Okanagan
- Canadian dies in avalancheWorld
|QHR Technologies Inc||1.26||+0.03|
|Anavex Life Sciences||0.184||-0.001|
|Copper Mountain Mining||2.42||-0.10|
|Sunrise Resources Ltd||0.065||+0.045|
|Mission Ready Services||0.32||-0.02|
Part 2 of 2 to read Part 1, click here. 5. Dial down your vacations. New York is out. Maybe Buffalo. For West coast, maybe Seattle instead of Hawaii. Use sites like Airbnb (aribnb.ca) to find ch...
Niche food producer “Sweets from the Earth” thrives using innovation, uniqueness and an unwavering focus on quality. A neighbour’s stew turned Ilana Kadonoff off meat at the age of s...
Recently I had the privilege of working alongside André Voskuil, a local guru in the world of Alternative Financing. André has quite the reputation in the world of direct investments as ...