MONTREAL, Sept. 14 /CNW Telbec/ - TransForce Income Fund (TSX: TIF.UN), the leader in the Canadian transportation and logistics industry, today announced the signing of a definitive agreement for the acquisition of Century II Holdings Inc. ("Century") (TSX:CH), which owns structured route courier company Information Communication Services (ICS) Inc.
Under the terms of the definitive agreement, which was approved by the Special Committee of independent directors of Century, TransForce will acquire all of the issued and outstanding shares of Century for a fixed price of $10.20 per share.
Completion of the previously-announced acquisition remains subject to customary conditions, including approval by a two-thirds vote of Century's shareholders at a special meeting to be held on October 25, 2007, regulatory approval, receipt of a satisfactory opinion from an independent financial advisor as to the fairness of the transaction to the shareholders of Century, and the signing of support agreements between TransForce and Century's two major shareholders by September 19, 2007.
"We are very pleased to have reached this stage of the transaction that was first announced on August 2," said Alain Bedard, Chairman, President and CEO of TransForce Income Fund. "We believe we are paying a fair price for business that will be a significant addition to our Less-Than-Truckload and Parcel segment. We are confident that all remaining conditions can be met and that this transaction will continue our track record of adding operations that are well-managed, successful and accretive to our unitholders."
Profile
TransForce Income Fund (www.transforce.ca) is the leader in Canada's transportation and logistics industry. Headquartered in Montreal, Quebec, the Fund's objective is to create value for unitholders through managing and investing in a growing network of independent operating subsidiaries. TransForce provides a comprehensive and unique combination of capabilities, resources and geographical coverage in both domestic and trans-border markets. Its companies operate in four well-defined business segments:
- Less Than Truckload and Parcel Delivery; - Specialized Services, which includes its ancillary transportation services and fleet management & personnel services businesses; - Specialized Truckload; and - Truckload.
TransForce's trust units (TIF.UN) are listed on the Toronto Stock Exchange and are included in the S&P/TSX Composite Index.
Forward-Looking Statements
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of TransForce. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for TransForce's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
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