TransForce Income Fund Completes Sale of Customs Brokerage Subsidiary and Announces Special Distribution to Unitholders
Montreal, September 2, 2005 – TransForce Income Fund (TSX: TIF.UN), the leader in the
Canadian transportation and logistics industry announced today that it has completed the sale of its
customs brokerage subsidiary M&C International Trade to PBB Global Logistics Income Fund (TSX:
PBB.UN) for a cash consideration of $35 million plus the net working capital of M&C which was
approximately $18 million (including approximately $6 million in cash) as of June 30, 2005.
During the 12 months ended June 30, 2005, the operations of M&C generated net revenues of $18
million and EBITDA of $4.5 million.
The sale of M&C combined with the sale of TransForce’s Calgary terminal completed in July 2005
will result in a total capital gain of approximately $42 million or $0.56 per unit. One half of this gain
will be taxable as a capital gain for residents of Canada and will be allocated to unitholders and
TransForce will declare a special distribution payable on October 14, 2005 to unitholders and to
Tracking Shareholders of record on September 30, 2005, in the amount of $0.56 per unit and its
economic equivalent per tracking share unit.
This special distribution will be paid to unitholders by the issuance of additional units and its
economic equivalent will be paid to Tracking Shareholders in cash. The number of additional units
issued will be based on the average closing per unit value of the last five trading days prior to
September 2, 2005. The issuance of the additional units will be subject to regulatory approval,
including that of the Toronto Stock Exchange.
Unitholders and Tracking Shareholders of TransForce who are not residents of Canada are advised to
seek tax advice concerning this transaction and special distribution.
The net, after-tax proceeds from the transaction will be used by TransForce to repay its current
bank indebtedness, with the balance being paid out to unitholders in the form of a special
distribution discussed above. The completion of this transaction is not expected to affect the regular
monthly distributions of TransForce or to have a material impact on the distributable cash
generated by TransForce.