TransForce Disposing of Waste Management Business

MONTREAL, QC – Canadian trucking and logistics giant TransForce Inc. has reached an agreement to sell its waste management segment to Toronto-based GFL Environmental Inc for $800 million.

The transaction will consist of the sale by TFI Holdings Inc., a wholly-owned subsidiary of TransForce, of 100 percent of the shares of Services Matrec Inc. and of the other indirect wholly-owned subsidiary companies comprising TransForce’s waste management segment. 

The transaction is expected to close on Feb. 1, 2016, subject to regulatory approval.

“Through this sale, we believe that TransForce will realize full value for the waste management segment which, in our view, has never been fully recognized,” said TransForce Chairman, President and CEO Alain Bédard.

The share purchase agreement provides that the purchase price may be paid as to $100 million by the issuance to TransForce of GFL shares, subject to TransForce being satisfied as to certain conditions.

In the event that TransForce does not receive GFL shares, GFL will pay $775 million to TransForce at closing and pay the balance of the purchase price by way of a promissory note in an amount of $25 million, payable four years from the date of closing and bearing interest at an annual rate of 3 percent.

 


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