Montreal, January 20, 2006 – TransForce Income Fund (TSX: TIF.UN), the leader in the Canadian transportation and logistics industry, announced today that it has signed a share purchase agreement to acquire Alberta-based Kos Corp. Oilfield Transportation Ltd. and its affiliated companies for a combination of TransForce units and cash.
Kos offers a wide range of transportation services to the energy industry in Western Canada, primarily dismantling, hauling and reassembly of drilling and service oil and gas rigs. Headquartered in Drayton Valley, Alberta Kos has six offices in the province with 215 experienced staff and a full complement of specialized equipment. Its anticipated revenue for 2006 is approximately $77 million.
Artie Kos, the sole shareholder and founder of the company 20 years ago, will continue to be involved with its management along with all of the key operating managers including Chief Operating Officer Glen Martin. The company will join the Specialized Services group of TransForce and will report directly to Darshan S. Kailly, President and Chief Executive Officer of TransForce’s operating subsidiary CF Managing Movement of
“The addition of Kos Corp. Oilfield Transportation is a major step for TransForce since it builds on our growing presence in Western Canada, increases our exposure to the robust energy industry and strengthens our Specialized Services businesses,” said Alain Bédard, Chairman of the Board, President and Chief Executive Officer of TransForce Income Fund. “We are very pleased to be able to draw on the experience and expertise of Artie Kos and his team and are confident they will help to generate significant value for our unitholders.”
Closing of the acquisition is expected by January 31, 2006 and is subject to normal conditions and approvals.