MONTREAL, June 4, 2014 /CNW Telbec/ - TransForce Inc. (TSX: TFI, OTCQX: TFIFF), a North American leader in the transportation and logistics industry, today announced that Matrec, a wholly-owned subsidiary of TransForce, has acquired the majority of assets of Veolia E.S. Matières Résiduelles Inc. operating under the name of Veolia Solid Waste Canada.
In the last twelve months, Veolia Solid Waste Canada generated annual revenues of more than $30.0 million and earnings before interest, taxes, depreciation and amortization ("EBITDA") of more than $5.0 million. The purchase price of $25.0 million, excluding estimated working capital of $5.0 million, represents an Enterprise Value to trailing 12-month EBITDA multiple of less than 5.5 times.
Veolia Solid Waste Canada has been operating in the Quebec City, Montreal and the Beauce regions for more than 40 years. It offers collection, transportation, disposal and recycling of trash and industrial waste to municipalities, as well as to commercial and industrial customers.
"The transaction will allow Matrec to broaden its service offering and increase its density in the province of Quebec. These assets will also provide additional capacity, which should improve the efficiency of our waste management operations," said Alain Bédard, Chairman, President and Chief Executive Officer of TransForce.
ABOUT TRANSFORCE
TransForce Inc. is a North American leader in the transportation and logistics industry operating across Canada and the United States through its subsidiaries. TransForce creates value for shareholders by identifying strategic acquisitions and managing a growing network of wholly-owned, operating subsidiaries. Under the TransForce umbrella, companies benefit from corporate financial and operational resources to build their businesses and increase their efficiency. TransForce companies service the following segments:
- Package and Courier;
- Less-Than-Truckload;
- Truckload, which includes specialized truckload and dedicated services;
- Specialized Services, which includes waste management, logistics services and services to the energy sector.
TransForce Inc. is publicly traded on the Toronto Stock Exchange (TSX: TFI) and the OTCQX marketplace in the U.S. (OTCQX: TFIFF). For more information, visit http://www.transforcecompany.com.
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.
NON-IFRS MEASURE
EBITDA is a financial measure not prescribed by IFRS and is not likely to be comparable to similar measures presented by other issuers. Management considers this to be useful information to assist investors in evaluating the Company's profitability, liquidity and ability to generate funds to finance its operations. This measure does not have any standardized meaning under IFRS and could be calculated differently by other companies. This measure should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS.
SOURCE: TransForce Inc.
Media:
Rick Leckner
MaisonBrison Communications
(514) 731-0000
[email protected]
Investors:
Alain Bédard
Chairman, President and CEO
TransForce Inc.
(647) 729-4079
[email protected]
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