Contrans to acquire trucking assets of Tri-Line Expressways

WOODSTOCK, Ont. (March 18, 2002) — Contrans Corp. has agreed to acquire the trucking assets of Tri-Line Expressways Ltd., the flatbed and general freight division of TCT Logistics, which entered receivership Jan. 24.

The purchase is being made from KPMG, the interim receiver of the assets, for an undisclosed amount.

The acquisition will give Contrans, the parent of Laidlaw Carriers and Brookville Carriers, a stronger presence in Western Canada. Tri-Line is based in Calgary and provides a full range of flat bed and dry van transportation services in North America.

The gross revenues of Tri-Line’s trucking business during the most recent fiscal year exceeded $80 million, Contrans said. Contrans generated revenues of $257 million in 2001.

In a news release, Contrans said it deal includes rolling stock, real estate in Alberta, Saskatchewan, and Texas, and goodwill associated with the business. The acquisition is subject to finalizing the terms of an acceptable agreement of purchase and sale and obtaining court approval of the transaction, the company noted.

In addition, prior to the completion of the transaction, Contrans may negotiate the retention of properties leased by Tri-Line in Western Canada and Quebec, it said.

The company said it intends to retain the management, employees and owner-operators of Tri-Line “to the extent necessary to service the retained business.”

In April 2000, TCT Logistics paid $44 million to buy the company from Tri-White Corp.

On Feb. 1, TransForce of Montreal agreed to buy Tri-Line’s freight brokerage business, based in Mississauga, Ont. The refrigerated truck assets of TCT were sold to Atlas Cold Storage of Toronto earlier this month.

The acquisition of Tri-Line is the second for Contrans in as many weeks. The company paid $16 million for Northstar Passenger Services, a school bus business based in Barrie, Ont.