MONTREAL, Aug. 17 /CNW Telbec/ - TransForce Inc. ("TransForce" or "the Company") (TSX: TFI - T), the leader in the Canadian transportation and logistics industry, today announced it has completed the previously announced acquisition of an equity interest and substantially all of the assets of EnQuest Energy Services Corp. of Calgary, Alberta.
Both transactions were subject to approval of a Plan of Arrangement that has been overwhelmingly approved by EnQuest shareholders at a special meeting.
The assets being acquired by TransForce generate estimated annual revenues of approximately US$50 million and are in several segments of the energy services business, primarily in the United States, including transportation services, rig-moving, crane services and specialized heavy hauling.
TransForce's U.S. subsidiary, Hemphill Trucking Inc., acquired the assets of Speedy Heavy Hauling Inc., a wholly-own subsidiary of EnQuest, for US$32 million and they will be merged with Hemphill to create a new division operating as "Hemphill Speedy", headquartered in Grand Junction, Colorado.
With completion of the asset sale, TransForce acquired an initial 19% equity position in EnQuest with an option to acquire the remaining 81% over the next three years. TransForce is paying C$2.8 million or C$0.17 per acquired share of EnQuest. C$0.16 is payable now, following approval of the Plan of Arrangement, and C$0.01 per share will be paid over the next three years at TransForce's option.
"This acquisition strengthens the potential of TransForce to gain from the expected recovery of the U.S. energy services industry. We will be more competitive by having a broader service coverage to include Arkansas, Colorado, Montana, North Dakota, Pennsylvania and Wyoming," said Alain Bédard, Chairman, President and Chief Executive Officer of TransForce Inc. "We welcome the skilled employees of Speedy to TransForce."
Hemphill Speedy will be included in the Specialized Services segment of TransForce.
TransForce Inc. (www.transforce.ca) is the leader in Canada's transportation and logistics industry. Headquartered in Montreal, Quebec, TransForce creates value for shareholders through managing and investing in a growing network of wholly-owned, operating subsidiaries. TransForce provides a comprehensive and unique combination of capabilities, resources and geographical coverage in both domestic and trans-border markets. Its companies currently operate in four well-defined business segments:
- Package and Courier;
- Specialized Services, which includes oilfield & oilsand services, waste
management; logistics, fleet management, and personnel services;
- Truckload, which includes specialized truckload and dedicated services.
TransForce Inc. shares are listed on the Toronto Stock Exchange under the symbol TFI.
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of TransForce. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for TransForce's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
SOURCE TransForce Inc.
For further information: For further information: Investors: Alain Bédard, Chairman, President and CEO, TransForce Inc., (514) 331-4200, firstname.lastname@example.org; Media: John Lute, Lute & Company, (416) 929-5883, email@example.com