TransForce Purchase Clarke, Ups Ownership in Vitran
November 01, 2013
TransForce has entered into a definitive agreement to acquire Clarke Transport and Clarke Road Transport, the two subsidiaries of Clarke Inc. Both are Canadian companies.
Clarke Transport offers less-than-truckload intermodal service and operates a network of 15 terminals across Canada. Clarke Road Transport offers regular and specialized truckload transportation services.
The transaction is set close late this year. The purchase price is reportedly CA$88 million.
The acquisition is expected to generate annual revenues of approximately CA$190 million. The two acquired entities employ a combined total of more than 600 staff and independent contractors.
Clarke President, Dean Cull, will remain with the company.
TransForce has also announced has increased its ownership of fellow Canadian trucking company Vitran.
TransForce now owns approximately 19.95% of Vitran’s total outstanding shares.
In connection with the transaction, TransForce signed a lock-up agreement with Vitran. Under the terms of the lock-up agreement, Vitran has irrevocably committed to tender its remaining 418,837 shares to TransForce, should it make a formal offer to Vitran shareholders.
TransForce says it is in the process of reviewing its alternatives related to its previously-announced proposal made to the board of directors of Vitran in September.