CALGARY (Feb. 23) — In an effort to penetrate the U.S. truck leasing market, Trimac Corp. announced plans to buy Transervice Lease Corp. and Transervice Logistics Inc. of Lake Success, N.Y., an 11,000-truck full-service leasing operation with more than 80 locations and 1100 employees across the U.S.

The transaction would give Trimac a U.S.-based complement to its Rentway Ltd. subsidiary in Canada. Rentway provides truck fleet management services including full-service leasing, rentals, maintenance and repair services across Canada and several proximate U.S. markets, and operates the most extensive network of heavy-duty truck shops in Canada.

The deal would also make Calgary-based Trimac one of the five largest equipment leasing companies in North America.

Transervice provides contract carriage, dedicated contract maintenance, and full-service leases for transportation equipment. It had estimated revenues of $75 million US in 1998, a 25% increase over 1997. Its focus is on large fleets, Trimac said, and in providing customized, dedicated fleet-management programs.

“We are excited about the prospects for growth in the U.S. market place for the Rentway-Transervice combination,” said Jeffrey J. McCaig, president and CEO of Trimac Corp.
“There is an excellent strategic and cultural fit between the companies. The industry specialization and ‘customer intimate’ approach of Transervice is remarkably similar to Rentway’s approach and we see the potential for significant synergies.”

The transaction would be accretive to the earnings of Rentway in 1999, McCaig said.

The purchase price was not immediately disclosed. The transaction is expected to close by March 31.