Clarke Inc. enters into agreement to sell freight transportation businesses

About this update from Clarke Inc.

[{"type":"text","content":"\n\n\nHALIFAX, Oct. 31, 2013 /CNW/ - Clarke Inc. (\"Clarke\") (TSX: CKI,\n CKI.DB.A) is pleased to announce that it has entered into an agreement\n for the sale of its truckload, less-than-truckload and freight\n logistics businesses (the \"Freight Transport Business\") to Transforce\n Inc. based on an enterprise value of $88.0 million excluding net\n working capital associated with the Freight Transport Business, which\n will be retained by Clarke. Certain other subsidiaries of Clarke\n engaged in information technology and human resources functions are\n also included in the sale. The purchase price is subject to a working\n capital adjustment and will be satisfied in cash on closing. The\n transaction is conditional on, among other things, receipt of approval\n under the Competition Act and the Canada Transportation Act. Clarke expects closing of the transaction to occur before the end of\n 2013.\n\n\nGeorge Armoyan, Chief Executive Officer of Clarke, stated: \"This is a\n bittersweet moment for Clarke as we have enjoyed working with Dean Cull\n and his entire team in the freight transportation business over the\n last decade. We wish them all the best as they join the Transforce\n organization.\" Mr. Armoyan added: \"The sale of Clarke's freight\n transportation business provides the company with good value and helps\n unlock the significant shareholder value that exists at Clarke which\n has not been recognized by the capital markets. Following the\n transaction, Clarke will continue to own its Commercial Tanks and Home\n Heating segment, its Investment segment and the ferry and container\n shipping units within its current Freight segment.\"\n\n\nClarke intends to review its business strategy, remaining businesses,\n investment opportunities, capital structure and dividend policy to\n determine how best to deploy the proceeds from this transaction and how\n to continue to maximize value for shareholders going forward.\n Alternative uses for the sale proceeds include general corporate\n purposes, redeeming all or part of Clarke's convertible unsecured\n debentures, funding additional investment opportunities or funding a\n special dividend to shareholders.\n\n\nAbout Clarke\n\n\nHalifax-based Clarke invests in a variety of private and publicly-traded\n businesses and participates actively where necessary to enhance\n perfor...

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