TransForce creates new platform for growth with acquisition of Services Matrec Inc.
Montreal, February 2, 2005 — TransForce Income Fund (TSX: TIF.UN), the leader in the Canadian
transportation and logistics industry, today announced that it has signed a share purchase
agreement to acquire Services Matrec Inc. and its subsidiaries . The agreement is subject to
customary conditions and is expected to close on February 28, 2005.
Services Matrec Inc. (formerly SITA Canada Inc.) and its subsidiaries specialize in the integrated
management of industrial, commercial and residential solid waste collection and treatment
including waste, recyclable materials, yard waste, construction and demolition materials, and
hazardous waste. Headquartered in Boucherville, Quebec, and operating across the province Matrec
has more than 1,000 employees and annual revenues of $125 million. Matrec President Charles
Tremblay will continue to manage the company following the acquisition, reporting directly to Alain
Bédard , Chairman, President and Chief Executive Officer of TransForce.
“Matrec is an exciting addition to the TransForce group of companies. It is immediately accretive
and we are confident it will create long-term value for our unitholders,” said Mr. Bédard. “Waste
management is a growing industry in Canada and it is a natural extension for TransForce . Matrec’s
previous investments in infrastructure and technology and its focus on Quebec have given it a very
strong competitive position in the province. It provides TransForce with a solid platform for the
Fund to continue its growth.”
The addition of a successful company in the waste management industry is a logical strategic
progression for the Fund’s business model. The national industry is characterized by consistent and
growing cash flow, significant organic growth, and opportunities for consolidation. Like Matrec,
TransForce’s core competencies are the efficient management and maintenance of a safe truck fleet
and the pick up, transportation and delivery of loads directly or through terminals and facilities.
Matrec builds on TransForce’s existing capabilities and will be a catalyst for the expansion of
TransForce’s Specialized Services business segment.
As a TransForce company, Matrec will benefit from the Fund’s financial strength as well as its
expertise in fleet management, facilities and real estate, technology, and development of human
resources in a business driven by the skills of its people.
“Our business plan is to continue to grow TransForce through the acquisition and development of
successful companies with proven management teams,” Mr. Bédard said. “Under its current
leadership, Matrec will be autonomous and will benefit from being part of the TransForce group and
the synergies that may be realized.”