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Trimac inks NGL contract
Originally published:  01/04/2012
North American road tanker operator Trimac Transportation has entered into a new contract to haul what it says is “a significant new volume” of natural gas liquids on behalf of Provident Energy in north-eastern British Columbia, Canada. The activities will be operated from Trimac’s Dawson Creek, British Columbia, facility and are expected to commence in the second quarter of 2012 and run through March 2014. Trimac says that the contract is expected to generate C$16m in revenue over the length of its term. “This opportunity will strengthen our capabilities to service our oil and gas customers in northeastern British Columbia,” says Trimac.
Trimac also announces that it has closed two recently announced acquisitions. First, Trimac closed its acquisition of a 29 per cent interest in Canada-headquartered road haulier Northern Resource Trucking (NRT) for a purchase price of C$9m. NRT’s activities focus on mining operations in the northern area of Canada’s Saskatchewan province, and its fleet includes trailers for transporting petroleum, dry bulk goods, acid, sulphur, propane and anhydrous ammonia. NRT has approximately 80 tractors and 140 trailers. “By exploiting Trimac’s expertise and NRT’s strong market position, the acquisition is expected to provide accretive earnings to Trimac,” says Trimac.
Additionally, Trimac closed its acquisition of a majority interest in the parent company of Fortress Trucking. Trimac acquired a 60 per cent interest in Fortress for a purchase price of C$4.4m. Pursuant to the terms of the share- purchase agreement, Trimac will acquire 50 per cent of the remaining shares of Fortress on the 24-month anniversary of the closing, and all of the remaining shares of Fortress on the 36-month anniversary of the closing for a minimum total purchase price of C$7.5m. Canada-headquartered Fortress provides bulk deliveries of liquid chemicals, petroleum products and dry chemicals throughout central Canada and the US. The assets of Fortress include 54 tractors and 130 trailers. “Fortress has been recognised as a premium carrier in the chemical industry for a very long time,” says Trimac. “We believe this business will provide excellent synergies and growth opportunities in our chemical operations.”