GORE BAY, ON — Manitoulin Transport is buying the Canadian assets of Vitran Corporation, Vitran announced Monday.

The transaction was estimated to be worth US$128 million and in fact it’s not Manitoulin Transport that’s purchasing Vitran but an affiliate of Manitoulin, 2398946 Ontario Inc.

The arrangement is subject to the receipt of applicable regulatory approvals (including approval under the Competition Act) and to the satisfaction of other customary closing conditions. A spokeman for Manitouiin says the deal is a “a long ways off” from being finalized.

Commented the Interim President and CEO of Vitran William Deluce: “Together Vitran and Manitoulin Transport will become a formidable and diversified supplier for customers requiring a full suite of transportation and supply chain services in Canada and the United States.”

Manitoulin Transport was launched in 1960 from the village of Gore Bay, on the North shore of Manitoulin Island in Lake Huron. Founder Doug Smith started delivering freight from Toronto to Northern Ontario. His son Gord is the current president and Manitoulin is an international multi-service logistics operation.

Head office remains in Gore Bay, population 900.

Vitran sold its U.S. operations, which at one point accounted for almost 90 percent of its business, to Central Transport, of Michigan earlier in the year.

(This story has been amended from its original form in order to correct a factual error–The Editor.)