Contrans, Mullen buy more fleets in wake of income trust decision

WOODSTOCK, Ont. — Two of Canada’s largest public for-hire carriers haven’t let the federal government’s recent announcement to tax income funds like other corporations affect their fleet purchasing strategies — at least not yet.

Contrans Income Fund — the parent company of Brookville Carriers, Laidlaw Carriers, and Tri-Line, among others — has completed the acquisition of 18-truck fleet, Tripar Transportation, a specialized overnight fleet service primarily between Southern Ontario and the North-Eastern U.S.

Based in Oakville, Ont., Tripar is focused on the movement of truckload, partial truckload and LTL shipments. It has 25 owner-ops under contract and recorded revenue of approximately $24 million in its most recent fiscal year.

Meanwhile in Calgary, Mullen Income Fund, Canada’s second-largest group of trucking firms, bought Carl Brady Trucking and Brady Sand & Gravel Ltd. (part of the Brady Group).

Operating since 1968, the two carriers are private companies based in Halbrite, Sask. with 55 combined power units. They provide services to the oil industry in the Midale and Weyburn fields located in southeastern Saskatchewan.

As always, both Contrans and Mullen will operate the new fleets separately with current management staying in place.

“This acquisition reaffirms our strategic plan of continuing to acquire quality well run companies, even in the face of the federal government’s recent announcement concerning the taxation of income trusts.” said Stephen H. Lockwood, President and Co-CEO.

“We are pleased to add the Brady Group to our growing organization. It is an outstanding company that further strengthens the oil service sector of our business in western Canada. The Brady Group has been in business for almost 40 years and has built an exceptional reputation for providing outstanding service to its customers, which will make them a very good fit into the Mullen business model.”

Contrans CEO Stan Dunford also welcomed Tripar President Ken Burditt into the Contrans family.

“Tripar has developed a unique transportation service that will expand and complement the offerings of Contrans which are already highly diversified. (Ken Burditt) has been running a very disciplined, successful business. We look forward to working with Ken and the Tripar team, and their continued success.”

In conjunction with the acquisition of Tripar, Contrans also entered into a private placement arrangement with Integrated Private Debt Corp. for up to $50 million in senior secured notes over a 10-year term. The agreement provides for monthly payments of interest only.