TransForce Bids to Acquire Contrans for $495 million
TransForce (TSX:TFI), which 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, has bid to acquire Ontario trucking company, Contrans for $495 million in cash.
Reports show that 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.
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.
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.
Category: General Update, Management
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