TransForce Completes EnQuest Energy Services Transactions
Montreal, August 17, 2010 –TransForce Inc. ("TransForce" or "the Company") (TSX: TFI - T), the leader in the Canadian transportation and logistics industry, today announced it has completed the previously announced acquisition of an equity interest and substantially all of the assets of EnQuest Energy Services Corp. of »
Both transactions were subject to approval of a Plan of Arrangement that has been overwhelmingly
approved by EnQuest shareholders at a special meeting.
The assets being acquired by TransForce generate estimated annual revenues of approximately US$50 million and are in several segments of the energy services business, primarily in the United States, including transportation services, rig-moving, crane services and specialized heavy hauling. TransForce's U.S. subsidiary, Hemphill Trucking Inc., acquired the assets of Speedy Heavy Hauling Inc., a wholly-own subsidiary of EnQuest, for US$32 million and they will be merged with Hemphill to create a new division operating as "Hemphill Speedy", headquartered in Grand Junction, Colorado.
With completion of the asset sale, TransForce acquired an initial 19% equity position in EnQuest with an option to acquire the remaining 81% over the next three years. TransForce is paying C$2.8 million or C$0.17 per acquired share of EnQuest. C$0.16 is payable now, following approval of the Plan of Arrangement, and C$0.01 per share will be paid over the next three years at TransForce's option.
"This acquisition strengthens the potential of TransForce to gain from the expected recovery of the
U.S. energy services industry. We will be more competitive by having a broader service coverage to
include Arkansas, Colorado, Montana, North Dakota, Pennsylvania and Wyoming," said Alain Bédard,
Chairman, President and Chief Executive Officer of TransForce Inc. "We welcome the skilled
employees of Speedy to TransForce."
Hemphill Speedy will be included in the Specialized Services segment of TransForce.