Markets

Sector Update: Industrials; TransForce Unit to Buy Transport America, CP Rail Completes Sale of Dakota, Minnesota & Eastern Rail Line

Industrial stocks were mostly higher in afternoon trading. The S&P/TSX Industrials index was up 0.7%.

Canadian Pacific Railway (CP.TO): +1.6%

Bombardier (BBD-B.TO): -0.5%

TransForce (TFI.TO): flat

Air Canada (AC-B.TO): +1.6%

WestJet (WJA.TO): +0.3%

In corporate news, TransForce said that its subsidiary has signed an agreement to buy Goldner Hawn Johnson & Morrison's entire share capital of its portfolio company Transport America, a provider of truckload carriage and logistics services.

The purchase price represents a total enterprise value of approximately US$310 million, including the assumption of Transport America's debt of about US$150 million.

Meanwhile, Genesee & Wyoming Friday said that its newly established subsidiary, Rapid City, Pierre & Eastern Railroad has completed the acquisition of the west end of the Dakota, Minnesota & Eastern rail line from Canadian Pacific Railway, for near US$210 million plus approximately $7.5 million for the purchase of certain inventory, equipment and vehicles.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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