TransForce bulks up on specialized truckload with forestry firm buy

MONTREAL — After taking the summer off from buying and selling, TransForce has announced yet another acquisition — this time in the forestry industry.

Canada’s largest for-hire carrier says it has signed a letter of intent to acquire Group 2 B Inc. and its subsidiaries, which are based primarily in Amos, Val-d’Or and Ville-Marie in Quebec’s Abitibi-Temiscamingue region. The transaction is expected to close by the beginning of October 2005.

Founded in 1966, Group 2 B through its subsidiaries is the leading trucking company servicing the forestry industry in north-western Québec and north-eastern Ontario and a just-in-time provider of transportation, logistics, loading and equipment leasing services.

It generates annual revenues of just under $50 million and 80 percent of the company’s revenues are secured through longer-term contracts with well-established clients. Most of these contracts are indexed to track inflation and fuel prices. Group 2 B has strong managers and staff led by Andre Bergeron who will continue as president following the acquisition, says Alain Bédard, president and CEO of TransForce.

“The acquisition of Group 2 B fits our model of acquiring well-managed market leaders,” said Bédard. “The addition of 2 B expands the capabilities of our specialized truckload division in serving the forestry industry.”