Trimac announces letter of intent to acquire Liquid Cargo Lines Limited
CALGARY, May 25, 2012 /PRNewswire/ - Trimac Transportation Ltd. ("Trimac") (TSX: TMA) announced today that it has entered into a letter of intent for the acquisition of all the issued and outstanding shares in the capital of Liquid Cargo Lines Limited ("LCL"). The closing of the transaction remains subject to customary terms and conditions including the parties entering into a definitive share purchase agreement and the completion of due diligence. In connection with the closing of the transaction, it is anticipated that the 13 acre property owned by LCL will be sold to a related party of Trimac and leased back to LCL, all on commercial terms. The closing is expected to be completed in the third quarter of 2012.
LCL, based out of Mississauga, Ontario since 1953, has provided specialized bulk transportation deliveries throughout Ontario, Quebec and the United States with a focus in chemicals and asphalt. The assets of LCL include 13 acres of real estate, 50 trailers, 23 company owned power units in addition to 15 owner operators.
In commenting on the transaction, Ed Malysa, President and Chief Operating Officer of Trimac, stated "Trimac is extremely pleased to have the employees of LCL join the Trimac team". Mr. Malysa goes on to say "LCL is a very strategic acquisition on several fronts. LCL's team of approximately 45 professional drivers will allow Trimac to grow its chemical and asphalt bunker product offering in central and eastern Canada. In addition, we gain 10 professional mechanics to grow our National Tank Services (NTS) segment. The 13 acre property includes mechanical shop facilities, commercial tank washing (currently leased and operated by NTS), administrative offices and parking. The property is strategically located and will facilitate Trimac's future growth requirements in this key geographic market."
About Trimac: Trimac is Canada's largest provider of bulk trucking services with operations from coast to coast. In addition, through its National Tank Services division, Trimac performs repairs, maintenance and tank-trailer cleaning services for both the Trimac fleet and for third party commercial customers. Trimac also provides third party transportation logistics services in Canada and the United States through its wholly owned subsidiary Bulk Plus Logistics.
SOURCE Trimac Transportation Ltd.