MONTREAL — After a recessionary hiatus from significant acquisitions, Canada’s largest for-hire trucking company (and fleet buyer) is actively on the hunt again.

TransForce has acquired an equity interest in Calgary’s EnQuest Energy Services and its subsidiaries, including Speedy Heavy Hauling.

TransForce’s U.S. subsidiary, Hemphill Trucking, will pay US$32 million for the assets, which will be merged with Hemphill under the new name of Hemphill-Speedy, headquartered in Grand Junction, Colo.
 

The deal is initially for 19 percent equity in EnQuest with an option to acquire the remaining 81 percent in the next three years.

EnQuest provides energy services, primarily in the U.S., such as goods transport, rig-moving, crane services, specialized heavy hauling, oilfield equipment rentals, retailing of new and refurbished oil country tubular goods, and pipe storage.

Earlier this week, TransForce reached an agreement with a syndicate of 15 lenders — led by National Bank of Canada and Royal Bank of Canada — on a new $650-million credit line.

TransForce said it has expanded through acquisitions and it plans to use the cash flow "for corporate purposes consistent with its established strategy."

The assets in the EnQuest deal are expected to generate annual revenues of approximately $50 million, the Montreal-based carrier said in a press release.

The acquisition is subject to conditions, including approval by two-thirds of the votes cast at a Special Meeting of EnQuest securityholders.

"The acquisition of the EnQuest assets substantially enhances TransForce’s competitive position in the US energy services industry where our coverage will now include Arkansas, Colorado, Montana, North Dakota, Pennsylvania and Wyoming and where we will be well poised to benefit from the impending recovery in the industry," said Alain Bédard, chairman, president and CEO of TransForce.