MONTREAL, July 15 /CNW Telbec/ - TransForce Inc. ("TransForce" or "the Company") (TSX: TFI - T), the leader in the Canadian transportation and logistics industry, today announced it has entered into a definitive arrangement agreement to acquire an equity interest in EnQuest Energy Services Corp. ("EnQuest") (TSX-V: ENQ) of Calgary, Alberta, and substantially all of the oilfield transportation assets of EnQuest's operating subsidiaries, including Speedy Heavy Hauling, Inc. ("Speedy").
EnQuest provides energy services primarily in the US in several business segments including transportation services, rig-moving, crane services, specialized heavy hauling, oilfield equipment rentals, retailing of new and refurbished oil country tubular goods, and pipe storage. The assets being acquired by TransForce generate estimated annual revenues of approximately US $50 million.
The acquisition will be completed by way of a Plan of Arrangement under the Business Corporations Act (Alberta) and is subject to conditions including approval by two-thirds of the votes cast at a Special Meeting of EnQuest securityholders.
The assets of EnQuest to be purchased by TransForce, which include primarily the rig-moving, specialized heavy hauling, and crane assets of Speedy and other minor EnQuest subsidiaries, will be purchased by TransForce`s U.S. subsidiary, Hemphill Trucking Inc., for US$32 million. The assets will be merged with those of Hemphill and the new entity will operate under the name "Hemphill-Speedy",headquartered in Grand Junction, Colorado. Contingent on completion of the asset sale, TransForce will acquire an initial 19% equity position in EnQuest with an option to acquire the remaining 81% over the following three years. TransForce will pay C$0.17 per acquired share of EnQuest with C$0.16 per share payable upon approval of the Plan of Arrangement and C$0.01 per share over the next three years at TransForce's option. The Board of Directors of EnQuest has unanimously approved the asset sale and Plan of Arrangement and has recommended that EnQuest shareholders and optionholders approve both transactions.
"The acquisition of the EnQuest assets substantially enhances TransForce's competitive position in the US energy services industry where our coverage will now include Arkansas, Colorado, Montana, North Dakota, Pennsylvania and Wyoming and where we will be well poised to benefit from the impending recovery in the industry" said Alain Bédard, Chairman, President and Chief Executive Officer of TransForce Inc. "With the strong support of EnQuest investors, we look forward to working with the 220 employees of Speedy as we further build on our US infrastructure and management team."
Subject to Enquest securityholder and the customary regulatory approvals, the transaction is expected to close on or about August 13, 2010 when the EnQuest assets will be added to 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, email@example.com