TransForce signs agreement to acquire Contrans Group Inc.

MONTREAL, Que. and WOODSTOCK, Ont.–TransForce Inc. and Contrans Group Inc. have entered into a support agreement for the acquisition by TransForce, for $14.60 in cash per share, of all of the issued and outstanding Class A subordinate voting shares and Class B multiple voting shares of Contrans by way of a friendly, Board-approved take-over bid (the “Offer”). The total equity purchase price is approximately $495 million.

The Board of Directors of Contrans, after consultation with its financial and legal advisors, has unanimously approved entering into the Support Agreement and unanimously recommends that Contrans shareholders tender their shares to the Offer. 

“I have admired the progress of Contrans for some time. Contrans has a culture similar to that of TransForce, strategically acquiring companies that add value for its shareholders. Contrans has a history of profitability, is financially sound and has seen steady growth over the years. From transportation facilities located mostly in Canada, Contrans offers customers a wide array of specialized services. This acquisition provides exciting potential for TransForce, adding strong resources, an excellent client base, and importantly, very strong management,” said Alain Bédard, Chairman, President and Chief Executive Officer of TransForce.

“TransForce has a significant market presence that will benefit our operations and possesses many of the same values that have allowed Contrans to operate successfully. I believe the entrepreneurial culture of Contrans will fit in well with TransForce. I am proud of Contrans’ management’s accomplishments over the past 25 years and look forward to seeing the team continue to flourish as part of the TransForce organization,” said Stan Dunford, Chairman and Chief Executive Officer of Contrans.

The Offer is expected to commence on or about August 21, 2014, said a release.

Following successful completion of the Offer, TransForce intends to nominate Stan Dunford, Chairman and Chief Executive Officer of Contrans, for election to the TransForce Board of Directors at the next annual meeting of TransForce’s shareholders, expected to be held in April 2015, the release added.