Trimac Income Fund has announced that Trimac Transportation Services Limited Partnership has completed the purchase of the Energy Transportation division of Superior Propane, a division of Superior Plus Inc. consisting of 40 propane trailers and certain other assets. Terms were not announced.
Trimac and Superior also have entered into a seven-year transportation agreement providing for primary truck transportation of propane to Superior market locations and to certain larger volume customers in eastern and Atlantic Canada. According to Trimac, annual revenues under the transportation agreement are estimated to be in the range of $7.5 million in the first year and $10 million thereafter, dependent on propane volumes transported.
“We are very pleased with this transaction, as it fits well within our compressed gas business segment and strengthens our existing relationship with Superior Propane,” says Terry J. Owen, chief executive officer of Calgary-based Trimac Income Fund. “The product line seasonality of this business, with its stronger winter volumes, will provide for operating synergies with our construction materials business segment, which is more active in the summer months.”
Trimac Income Fund is an unincorporated, open-ended limited-purpose trust created for the purpose of acquiring and holding an indirect interest in Trimac, Canada’s largest provider of bulk trucking services with operations from coast to coast. In addition, through its wholly owned subsidiary, Bulk Plus Logistics Limited Partnership, Trimac provides third-party transportation logistics services in Canada and the United States.
