Contrans Second-Quarter Profit Rises on Sales of Waste-Collection Business
Canadian carrier Contrans Group’s second-quarter profit rose, in part on the sale of its waste-collection segment, the company said.
Net income rose to C$10 million, or 29 cents a share, from C$7.4 million, or 22 cents, a year earlier.
Revenue rose to C$153.7 million, from $C132.6 million, the Woodstock, Ontario-based company said.
The sale of the waste-collection business generated about $70 million in proceeds and an after-tax gain of $26.3 million, according to the company.
The Contrans recently agreed to be acquired by fellow Canadian carrier TransForce Inc. for about C$495 million.
Under the deal, announced July 24, TransForce will pay C$14.60 per share, a premium of about 16.7% over Contrans’ 52-week average share on the Toronto Stock Exchange.
TransForce ranks No. 9 and Contrans Group is No. 49 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
“Contrans has a culture similar to that of TransForce, strategically acquiring companies that add value for its shareholders,” TransForce Chairman and CEO Alain Bédard previously said in a statement.
