MONTREAL, QUEBEC--(Marketwired - Feb. 1, 2016) - TransForce Inc. (TSX:TFI)(OTCQX:TFIFF), a North American leader in the transportation and logistics industry, today announced that it has completed the previously-announced sale of its Waste Management segment to GFL Environmental Inc., headquartered in Toronto, Ontario, for $800 million. At closing, GFL paid $775 million to TransForce, subject to customary closing adjustments, and issued a promissory note to TransForce in an amount of $25 million, payable in four years and bearing interest at an annual rate of 3%.
The transaction consisted of the sale by TFI Holdings Inc., a wholly-owned subsidiary of TransForce, of 100% of the shares of Services Matrec Inc. and of the other indirect wholly-owned subsidiary companies comprising TransForce's Waste Management segment. TransForce intends to use the net proceeds from the sale of the Waste Management segment for general corporate purposes, to support its program of strategic acquisitions, for its normal course issuer bid, and to reduce indebtedness.
"We are very pleased to have completed this transaction with GFL. Through this sale, we believe that TransForce has realized full value for the Waste Management segment," said TransForce Chairman, President and CEO Alain Bédard. "Once again, I want to sincerely thank the many employees of our Waste Management segment for their devoted service," Mr. Bédard added.
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 financial and operational resources to build their businesses and increase their efficiency. TransForce companies service the following segments:
TransForce Inc. is publicly traded on the Toronto Stock Exchange (TSX:TFI) and the OTCQX marketplace in the U.S. (OTCQX:TFIFF).
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.