BREAKING NEWS: Canada Cartage in buyout talks

TORONTO — Canada Cartage Diversified Income Fund is confirming this afternoon that it’s “in advanced discussions with a potential acquiror in respect of a sale of the assets of the Fund.”

The statement is in response to a Globe & Mail article today that reported the Mississauga, Ont.-based company is “deep into a strategic review,” and a sale was possible.

The fund, which owns Canada Cartage system — the 11th largest for-hire carrier in Canada — says there are still a number of matters to be resolved before any such sale of trucking assets, including approval by the trustees of the Fund and completion of definitive transaction documents.

“There is no certainty that a deal will be reached on any transaction,” the company stresses. “The Fund will provide a further update at the appropriate time.

The Globe article speculated that if the company was sold, an industry rival, rather than a private equity fund, would be the most likely suitor.

Canada Cartage is an LTL and full truckload carrier which operates nearly 4,000 pieces of equipment, including over 1,800 power units, and 2,000 trailers. It specializes primarily in customer-domiciled dedicated fleets.

If a deal is reached, it would be the 18th trust buyout since the federal government announced a tougher tax regime on income trusts last Halloween.