Kriska buys division of BMD; boss says not about capacity

PRESCOTT, Ont. — While many fleets are contracting in these tough economic times, Kriska Transportation instead has been quietly growing.

Its parent company Kriska Holdings today announced it intends to purchase assets of the van division of BMD Transportation, primarily a cross-border truckload carrier operating in nearby Lansdowne, Ont.

BMD, which Kriska President and CEO Mark Seymour says is modeled similarly to Kriska, will continue to operate with its flatbed division, however.

In an interview with todaystrucking.com this morning, Seymour confirmed that about 75 van trailers and 40 trucks are part of the deal — a dozen of which are company units and the balance being owner-operators.

"The addition of the BMD assets, employees, contractors, and customers will compliment our strategic objective of adding quality people and quality revenue," said Seymour.

The Kriska boss admitted there are parallels between this acquisition and the agreement to purchase the cross-border truckload assets of Muir’s Cartage in 2007.

Deal’s about volume: Mark Seymour

Despite the depressed southbound freight environment, Seymour says he remains committed to growing in markets that complement Kriska’s "core skills and competencies."

The primary goal this time, though, had nothing to do with increasing capacity.

"This gives us access to new customers and new volume within our geographical region," Seymour told us. "This is not about increasing our fleet size by any stretch of the imagination. It’s a volume matter."

Bert McMahon, president of BMD Transportation said his trust and familiarity with the Kriska Group helped make his decision.

"When deciding to sell my business, my priority was to place my employees and customers in the hands of a quality carrier,” he said. "My people and customers are in a safe place."

The deal is expected to close on Jan. 31.