Montreal-based trucking conglomerate TransForce Income Fund said it was successful in its bid to purchase substantially all the assets of Canadian Freightways Ltd. from bankrupt LTL carrier Consolidated Freightways Corp. (CF)
The purchase price is $69.6 million CAD plus assumption of loans and credit facilities of approximately $15 million CAD. The acquisition is expected to close before the end of this year.
TransForce said it intends to operate Canadian Freightways as an independent division and will retain its current management and staff of approximately 1,500 people under the direction of Darshan Kailly, president of Canadian Freightways.
"Canadian Freightways is a profitable, well-managed enterprise and adding this company to the TransForce group will provide unparalleled coverage to our customers across Canada," said Alain Bédard, president and CEO of TransForce.
The bid was accepted by CF and was approved by the United States Bankruptcy Court in California on Monday. Court approval was necessary since CF is under Chapter 11 proceedings.
According to TransForce, the combined revenues of Canadian Freightways for its last fiscal year were approximately $236 million CAD.