CONTRANS GROUP INC. EXPANDS ITS WASTE COLLECTION BUSINESS THROUGH THE
PURCHASE OF ADDITIONAL EDMONTON WASTE ASSETS
(TSX: CSS)
WOODSTOCK, ON, Oct. 5 /CNW/ - Contrans Group Inc.("Contrans") is pleased to announce that it has completed the acquisition of certain contracts, vehicles and waste collection assets in Edmonton, Alberta from BFI Canada Inc. The assets were purchased by ProWerx Disposal Ltd. ("ProWerx"), a wholly-owned subsidiary of Contrans. ProWerx is an existing Edmonton-based waste collection business that was acquired by Contrans on September 20, 2010.
BFI Canada Inc. divested of these assets in order to comply with the Consent Agreement dated June 29, 2010 between IESI-BFC Ltd. and the Canadian Competition Bureau, related to the acquisition of Waste Services Inc. by IESI-BFC Ltd.
The assets acquired represent annualized revenues of $5.5 million, based on current services. There are approximately 800 customer accounts included with this purchase, and approximately 1,400 customer contracts representing 2,000 collection services. The majority of the customer accounts are assumed by ProWerx immediately at closing, while a limited number of customer contracts will be transferred after receiving customer consents on or before November 29, 2010.
"We signalled that we wanted to participate in the waste collection business when we purchased ProWerx Disposal Ltd. two weeks ago" stated Stan Dunford, Chief Executive Officer of Contrans. "This transaction represents an immediate enhancement to this business and will add density and volume to the existing services offered by ProWerx. As stated before, it is our intention to continue to grow in this segment."
For further information: For further information: Stan G. Dunford, Chairman and Chief Executive Officer, or Gregory W. Rumble, President and Chief Operating Officer, Phone: 519-421-4600, E-mail: [email protected], Web site: www.contrans.ca
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