TORONTO, Ont. — In response to an article in the Globe and Mail, Canada Cartage Diversified Income Fund confirmed it is in advanced discussions with a potential acquiror in respect of a sale of the assets of the fund.
The article reported Canada Cartage is deep into a strategic review and an industry rival rather than a private equity fund is the most likely suitor.
However, there are still a number of matters to be resolved, noted Canada Cartage in a news release, which includes approval by the trustees of the fund and completion of definitive transaction documents.
Established in 1914, the family owned company has grown into one of the largest carriers in the country and currently provides single source contract trucking and dedicated fleet service for more than 60 major corporations.
Since the federal governments increased taxation on income trusts last October, a number of funds have gone the buyout route; and if a deal is reached Canada Cartage would become the 18th.
There is no certainty that a deal will be reached on any transaction, the carrier noted. The fund will provide a further update at the appropriate time.
— with files from the Globe and Mail
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