Canam Manac names price, buyers for trailer biz

ST-GEORGES, Que., (May 3, 2004) – The president of Manac and two other Quebec investors will pay the former parent company Canam Manac Group $70 million for its trailer division.

Manac president Charles Dutil will hold 20 per-cent share in the new partnership. Le Fonds de Solidarite FTQ will hold 40 per cent, while the Bourgie family and Les Partenaires de Montreal will jointly hold the remaining 40 per cent.

The deal — which is expected to close in the next few days — includes all trailer assets, Manac plants in Quebec, and a semitrailer facility in Oran, Mo. An Orangeville, Ont., dry van plant — which was closed permanently in January after a long layoff — is not part of the sale.

Canam — a giant Canadian steel company operated by the Dutil family — sold the 970-employee trailer division to the unit’s president in order to concentrate on its construction products business.

Charles Dutil says he’s confident his decision to invest in Manac sends a good message to customers about his personal dedication to the company’s future. “I’ve been with Manac now a good 14 years. I kind of grew up in the business,” he told Today’s Trucking. “It’s a business I trust. I do know it’s not an easy business sometimes, but it’s something I think we can definitely have success with.”

In 1999, Canam Manac broke off negotiations to sell its semitrailer division and assets to Chicago-based Great Dane Limited Partnership (GDLP) for $87.5 million. The transaction was halted on the verge of closing when the parties were unable to agree on details mostly relating to employee layoffs and other matters.

— with files from Canadian Press