TORONTO, (June 2, 2004) — One of Canada’s largest freight transportation firms has sold its non-asset logistics division and U.S. subsidiary to PBB Global Logistics Income Fund — an Ontario-based international logistics provider and customs broker.

Clarke Inc. announced it has sold its Clarke Logistics division to PBB for $40 million — plus approximately $7 million for net working capital. PBB says Clarke Logistics’ strengths in cross-border shipment and the Canada-Mexico intermodal market will accelerate the company’s expansion from primarily a customs brokerage operation to a provider of third party international logistics services.

The combined organization will employ approximately 1,100 people in 85 locations across North America and China with pro forma net revenue of $109.9 million, PBB says.

“Clarke Logistics is a superb business. It serves a diversified base of approximately 2,200 customers from locations in key strategic logistics hubs in the United States, Mexico and Canada,” said Ken Chalmers, PBB’s senior executive vice-president, in a press release.

Clarke Inc — parent company of Clarke Transport, Clarke Road Transport, Concord Transportation, and Clarke Contract Services — said after finalizing the deal, the company will complete a review of its long-term strategic plan in order to focus on its asset-based core business in North America.