MONTREAL, Que. — TransForce Income Fund has announced it has signed a share purchase agreement to acquire Alberta-based Kos Corp. Oilfield Transportation Ltd. and its affiliated companies for a combination of TransForce units and cash.
Kos offers a wide range of transportation services to the energy industry in Western Canada, primarily dismantling, hauling and reassembly of drilling and service oil and gas rigs. Headquartered in Drayton Valley, Alta., Kos has six offices in the province with a staff of 215 and a full complement of specialized equipment. Company officials anticipate revenue for 2006 to be about $77 million.
Artie Kos, the sole shareholder and company founder, will continue to be involved with its management along with all of the key operating managers including COO Glen Martin. The company will join the specialized services group of TransForce and will report directly to Darshan S. Kailly, president and CEO of TransForce’s operating subsidiary CF Managing Movement of Calgary, Alta.
“The addition of Kos Corp. Oilfield Transportation is a major step for TransForce since it builds on our growing presence in Western Canada, increases our exposure to the robust energy industry and strengthens our specialized services businesses,” said Alain Bdard, president and CEO of TransForce. “We are very pleased to be able to draw on the experience and expertise of Artie Kos and his team and are confident they will help to generate significant value for our unitholders.”
Closing of the acquisition is expected by Jan. 31 and is subject to normal conditions and approvals.
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