Trimac Transportation announces acquisition of Liquid Cargo Lines
CALGARY, July 30, 2012 /PRNewswire/ - Trimac Transportation Ltd. ("Trimac") (TSX: TMA) announced today that it has completed its acquisition of all of the issued and outstanding shares in the capital of Liquid Cargo Lines Limited ("LCL"). Trimac acquired the shares of LCL from McCaig Real Estate Ltd., an affiliate of Trimac, for a purchase price of $1,986,000.
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 42 trailers, 22 company owned power units in addition to 8 owner operator units and a lease of a 13 acre property in Mississauga, Ontario.
Immediately prior to the closing of the acquisition, through a series of transactions, McCaig Real Estate Ltd. acquired the shares of LCL from an arm's length third party and purchased from, and leased back to, LCL the 13 acre property located in Mississauga, Ontario where LCL's branch is located and where National Tank Services currently operates a tank wash facility. McCaig Real Estate Ltd. is controlled by Jeffrey J. McCaig, the Chairman and Chief Executive Officer of Trimac. The transaction was reviewed and unanimously approved by the independent directors of Trimac and supported by independent appraisals of both the rolling stock and the real property.
In commenting on the transaction, Ed Malysa, President and Chief Operating Officer of Trimac, stated "Trimac is extremely pleased to have completed the acquisition of LCL and welcomes its employees to the Trimac team. The 13 acre Mississauga 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. By leasing the LCL facility, rather than purchasing it, Trimac can employ a higher amount of its available capital to earn more attractive financial returns in its trucking and non-trucking operations."
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.