TransForce buys freight transport businesses from Clarke Inc. for $88 million

MONTREAL – TransForce Inc. says it has purchased two freight transport businesses from Clarke Inc. for $88 million.

The Montreal-based trucking and courier company said the deal, which is subject to regulatory approval, is expected to close by the end of the year.

TransForce says the purchase includes Clarke Transport Inc., a provider of less-than-truckload intermodal transportation services and Clarke Road Transport Inc., which provides regular and specialized truckload transportation services.

Both businesses have a total of about 600 employees and contractors. It expects the acquisition to generate approximately $190 million in additional annual revenue for the company.

Earlier this week, TransForce announced it was getting out of the rig-moving business in Canada early next year as it tries to stem losses by focusing on its growing U.S. operations.

The company’s net income decreased 18.2 per cent to $44 million in the three months ended Sept. 30, from $53.8 million a year earlier. That translated into 45 cents per diluted share in earnings, compared with 53 cents per share a year earlier.

Excluding one-time items, it earned $36.7 million in adjusted income or 38 cents per share, one penny below analyst forecasts.

Total revenues were $775.1 million, including fuel surcharges, up from $761.7 million last year.

The quarter’s results were primarily affected by lower earnings and revenues in its drilling rig moving operations and losses at Velocity Express, a U.S.-based same-day package delivery firm acquired nearly a year ago.