CALGARY, Alta. -- Trimac Transportation has completed its acquisition of all of the issued and outstanding shares in the capital of Liquid Cargo Lines Limited (LCL). Trimac acquired the shares of LCL from McCaig Real Estate, an affiliate of Trimac, for a purchase price of $1,986,000.
LCL, based out of Mississauga, Ont. since 1953, provides specialized bulk transportation deliveries throughout Ontario, Quebec and the US with a focus in chemicals and asphalt. The assets of LCL include 42 trailers, 22 company-owned power units, in addition to eight owner/operator units, and a lease of a 13-acre property in Mississauga.
According to company officials, immediately prior to the closing of the acquisition, through a series of transactions, McCaig Real Estate acquired the shares of LCL from an arm's length third party and purchased from, and leased back to, LCL the 13-acre property where LCL's branch is located and where National Tank Services currently operates a tank wash facility. McCaig Real Estate is controlled by Jeffrey J. McCaig, the chairman and CEO of Trimac. The transaction was reviewed and unanimously approved by the independent directors of Trimac and supported by independent appraisals of both the rolling stock and the real property.
"Trimac is extremely pleased to have completed the acquisition of LCL and welcomes its employees to the Trimac team,” said Ed Malysa, president and COO of Trimac. “The 13-acre Mississauga property includes mechanical shop facilities, commercial tank washing (currently leased and operated by NTS), administrative offices and parking. The property is strategically located and will facilitate Trimac's future growth requirements in this key geographic market. By leasing the LCL facility, rather than purchasing it, Trimac can employ a higher amount of its available capital to earn more attractive financial returns in its trucking and non-trucking operations."