CONCORD, Ont. – Executives from Clarke and Consolidated Fastfrate have been in negotiations since early August, trying to close a deal that would see Clarke acquire Consolidated.

Both companies have domestic rail forwarding operations based in Concord, Ont.

Clarke’s domestic operations are currently handled by its Clarke Transport division, which accounts for 40 per cent of the company’s revenues.

The transaction is scheduled to be completed by Sept. 30, following the successful completion of negotiations and the due diligence process. The two companies also have to receive the necessary consents from the appropriate regulatory bodies.

The combined revenues of the two companies would exceed $200 million.

“We view this as a giant step forward in addressing the issues of asset utilization and operating efficiency in the domestic rail freight business,” said Roy Rideout, Clarke’s chairman and CEO. “We expect that the economies of scale achieved will justify substantial new investment in technology and customer service.”

Added Ron Tepper, president and CEO of Consolidated Fastfrate: “This venture will double the size of our respective domestic operations. This is all about building a stronger company; one that can continue to grow and prosper.” n