MONTREAL, (Feb. 2, 2005) — Canada’s largest trucking company is digging into the waste management business with the agreement to acquire Boucherville, Que.-based Services Matrec Inc. and its subsidiaries.

Quebec transportation and logistics giant TransForce Income Fund says Matrec will be folded into the company’s Specialized Services division. The agreement is subject to customary conditions and is expected to close on Feb. 28, 2005.

Services Matrec specializes in the integrated management of industrial, commercial and residential solid waste collection and treatment of waste, recyclable materials, yard waste, construction and demolition materials, and hazardous waste.

Matrec has more than 1,000 employees and annual revenues of $125 million. Matrec President Charles Tremblay will continue to manage the company, reporting directly to TransForce President and CEO Alain Bédard.

“Waste management is a growing industry in Canada and it is a natural extension for TransForce,” said Bédard in a prepared statement. “Matrec’s previous investments in infrastructure and technology and its focus on Quebec have given it a very strong competitive position in the province. It provides TransForce with a solid platform for the Fund to continue its growth.”

Bédard says the addition of a successful company in the waste management industry is a logical strategic progression for TransForce’s business model. The national industry is characterized by consistent and growing cash flow, significant organic growth, and opportunities for consolidation.

Like Matrec, TransForce’s core competencies are the efficient management and maintenance of a safe truck fleet and the pick up, transportation and delivery of loads directly or through terminals and facilities, Bédard says.

As a TransForce company, Matrec will benefit from the Fund’s group synergies, financial strength, as well as its expertise in fleet management, facilities and real estate, technology, and development of human resources in a business driven by the skills of its people.

Meanwhile, TransForce announced its fourth-quarter revenues rose by 76.1 per cent to a record $339.2 million as a result of recent strategic acquisitions and growth within its own divisions.

For the full year, TransForce generated revenues of $1.1 billion, up from $753.7 million for 2003.

The big TransForce buy of 2004 was Markham, Ont.-based truckload and container specialist Highland Transport, which TransForce bought from Calgary’s TriWest Capital Partners. Highland was one of the top 20 largest for-hire trucking companies in Canada.

In its first acquisition of 2005, TransForce acquired Calgary-based Porter Trucking last month. Porter is an LTL and TL carrier and was also one of Canada’s largest fleets.