CALGARY, Alta. — Trimac has completed its purchase of the Energy Transportation division of Superior Propane, the company has announced.
The fleet consists of 40 propane trailers and other assets. As part of the acquisition, Trimac and Superior have entered into a seven-year transportation agreement. Trimac will provide the primary truck transportation of propane to Superior’s customers in Eastern and Atlantic Canada.
Annual revenues under the transportation agreement are estimated to be in the range of $7.5 million in the first year and $10 million in subsequent years, the companies have announced.
“We are very pleased with this transaction as it fits well within our compressed gas business segment and strengthens our existing relationship with Superior Propane,” said Terry Owen, CEO with Trimac Income Fund. “The product line seasonality of this business, with its stronger winter volumes, will provide for operating synergies with our construction materials business segment which is more active in the summer months.”
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