TransForce announces agreement to sell customs brokerage subsidiary
MONTREAL, August 5, 2005 – TransForce Income Fund (TSX: TIF.UN), the leader in the Canadian
transportation and logistics industry, announced today it has agreed to sell its customs brokerage
subsidiary, M&C International Trade (M&C), to PBB Global Logistics Income Fund (TSX: PBB.UN).
Under the terms of the purchase and sale agreement, TransForce will receive proceeds of
approximately $35 million plus the net working capital of M&C which was approximately $18 million
including approximately $6 million in cash at June 30, 2005.
M&C is based in Calgary, Alberta and was founded in 1913. It provides customs brokerage services
to companies with goods entering Canada as well as international ocean and air freight forwarding
services and customs consulting services. M&C has approximately 200 employees and operates 20
customs brokerage offices across Canada. For the twelve month period ended June 30, 2005, the
company generated net revenues of approximately $18 million and EBITDA of $4.5 million.
TransForce acquired M&C as part of its acquisition of Canadian Freightways Limited completed in
Through its wholly-owned operating subsidiary, PBB Global Logistics Income Fund is a leading North
American provider of customs brokerage and third party logistics services, facilitating the
movement of goods across North America and around the world on behalf of its customers. PBB,
founded in 1946, has an established North American presence with approximately 1,300 employees
in over 80 offices located at key border points and other locations across Canada and the United
States. PBB’s units trade on the Toronto Stock Exchange under the symbol PBB.UN.
“This transaction is beneficial to TransForce, PBB Global Logistics and M&C”, said Alain Bédard,
Chairman of the Board, President and Chief Executive Officer of TransForce Income Fund . “M&C is
an established, profitable and well-managed company with a strong presence in Western Canada.
Strategically, it is the right fit with PBB but was non-core to our operations and had little interaction
with the rest of the TransForce group. I thank M&C’s capable employees for their contribution and I
am confident that they will be a key addition to PBB’s customs brokerage activities.”
Closing of the transaction is expected to occur on August 31, 2005 and is subject to regulatory
approvals and other customary closing conditions.