TransForce Announces Two Transactions To Further Strengthen Its Waste Management Division and Reaffirms Year End EBITDA Guidance
- Acquires Roland Thibault Inc.
- Increases Ownership of Laflèche Environmental Complex
- Reaffirms 2008 Year-End EBITDA Guidance of $275 to $280 Million
Montreal, October 21, 2008 – TransForce Inc. (TSX: TFI) the leader in the Canadian
transportation and logistics industry, today announced it has completed two transactions designed
to increase the strength of Matrec, the Company’s waste management division.
TransForce has today completed the acquisition of Roland Thibault Inc., based in Granby region,
Québec. The Company specializes in the collection, transportation and disposal of non-hazardous
solid waste and has recently completed the permitting process, with the Québec Ministry of the
Environment, for the construction of a 6.8 million cubic meter expansion of its site. This expansion
will conform to new Ministry landfill regulations and will be constructed using the latest technology.
At current annual volumes, the landfill site will satisfy local business and municipal waste disposal
needs for at least 40 years. The Company also plans to institute a number of recycling initiatives
that will divert waste from landfills and further contribute to meeting the local municipalities’
diversion goals as set out in their waste management master plan (Plan de Gestion des Matières
Résiduelles du Québec).
TransForce also announced that it has increased its ownership position in Laflèche Environmental
Inc.’s landfill and environmental complex, located in Moose Creek, Ontario, from 37.5% to 50%.
Over recent years, TransForce has worked closely with its partner at Laflèche to promote a number
of recycling activities including the treatment of contaminated soils, generation of electricity from
refuse-derived fuel and, most recently, the construction of a composting facility. Landfilling of waste
is progressively becoming a means of last resort at the multi-faceted Moose Creek environmental
facility, and it will serve as a model for other operations, including the landfill site owned by Thibault.
These investments and others, including the current $7 million retooling of Matrec’s St. Hubert,
Québec recycling plant, are part of a process that commenced three years ago to modernize
Matrec’s equipment and infrastructure. The installation of leading edge technology at St Hubert will
solidify Matrec’s competitive position in the Montreal marketplace for single stream processing of
household and business recyclables.
“Our Matrec division has made increasingly significant contributions to TransForce. It is focused on
controlling costs associated with the disposal of its waste which, in the past, have represented
approximately 50% of Matrec’s operating expenses,” said Alain Bédard, TransForce’s Chairman and
CEO. “We believe the addition of the Thibault landfill and management team, in addition to the
increased ownership stake in Laflèche, will greatly enhance Matrec’s cost-control efforts and make it
an even stronger competitor in its market.”
Year End Guidance
Because the 2008 results will be the first annual results to be reported since the conversion of
TransForce from an income fund to a corporation in May of this year, TransForce is providing
investors with guidance on its anticipated EBITDA (earnings before interest, taxes, depreciation and
amortization and equivalent to operating income on TransForce’s financial statements). TransForce
reaffirms its 2008 year-end EBITDA guidance of $275 million to $280 million as disclosed on March
27, 2008. The Company will issue its financial results for the third quarter, ended September 30,
2008, via news release on October 30, 2008.