Transportation Acquisitions in Canada

Exchange Income Corporation (EIC) has closed its acquisition of Bradley Air Services Limited, which operates as Canadian North, for a purchase price of $205 million (subject to post-closing adjustments). The transaction was financed with $10 million in EIC common shares and the remainder through EIC’s credit facility. The deal excludes the Montreal–Kuujjuaq route, which will be retained by one of the vendors, Makivik Corporation.

LAZ Parking completed an acquisition giving it a 60% majority stake in INDIGO Park Canada Inc. (IPC), forming what it describes as North America’s largest tech-driven parking, transportation, and mobility operator. The deal reunites LAZ with the INDIGO Group and expands their collaboration around technology platforms such as business intelligence, e-commerce, and computer-vision AI tools.

Northway Aviation LP, backed by Westcap Mgt. Ltd. and its managed-fund syndicate, acquired SkyNorth Air Ltd. to expand essential aviation services in Manitoba. SkyNorth is a dedicated air ambulance provider with operations based in Winnipeg, Thompson, and Garden Hill/Island Lake, strengthening Northway’s service offering and creating operational efficiencies across facilities, staff, and a combined fleet.

Trimac Transportation has acquired Watt & Stewart, a flatbed and specialized carrier serving Canada and the United States, effective Jan. 15, 2025. The deal expands Trimac’s flatbed capabilities and strengthens its offerings in mining, forestry, and heavy equipment transportation, while Watt & Stewart will retain its name and branding as part of Trimac’s Family of Companies.

Krystal Growth Partners has acquired Seair Seaplanes, a seaplane operator serving coastal British Columbia. Krystal plans to invest in operations and infrastructure to support Seair’s team and expand service offerings while maintaining operational continuity under founder and CEO Peter Clarke.

Aviation Starlink Inc. and its affiliates closed the acquisition of certain assets of Services Aériens Lux Inc. and other affiliates of Chrono Aviation Inc. on November 8, 2024. The transaction was completed through a court-approved vesting order and reverse vesting order under Canada’s Companies’ Creditors Arrangement Act, alongside related equity investment and debt financing for the Chrono Group. Aviation Starlink also provides post-closing lending to fund the Chrono Group’s ongoing operations.

TerraVest Industries Inc. (TSX: TVK) has agreed to acquire (and has completed the purchase of, per the seller’s announcement) Advance Engineered Products Ltd., a Regina, Saskatchewan-based Canadian manufacturer and service provider in the tank trailer industry. The business is being acquired from Ironbridge Equity Partners (together with management), with undisclosed financial terms.

Westcap Mgt. Ltd. made an investment in Northway Aviation LP and Northway Aircraft Leasing LP (collectively, Northway) through a syndication of its managed funds Westcap MBO III Investment LP and Connect Manitoba Growth Fund LP. Northway provides scheduled and charter passenger and freight air transportation services to remote communities in Manitoba and Ontario. The existing ownership group (the Johnson family) will retain a significant investment in the business.

Astatine Investment Partners announced it has acquired McKeil Marine Limited, a Canadian marine transportation and project services provider. The business was purchased from TorQuest Partners and will support McKeil’s continued growth across the Great Lakes, St. Lawrence Seaway, East Coast, and the Canadian Arctic.

Genesee & Wyoming Canada Inc., a subsidiary of Genesee & Wyoming Inc., completed the acquisition of BMS Locomotive Service Group Inc. BMS provides locomotive inspection, maintenance, refurbishment, and repair services to freight railroads across Western Canada and is headquartered in Edmonton, Alberta. Financial terms were not disclosed.

First Student completed its acquisition of the Dufresne Group, a Montreal-based provider of school transportation, coach, and transit passenger services. The deal expands First Student’s home-to-school transportation operations in Eastern Canada and adds a fleet of 542 vehicles serving nine education consortiums. Transaction terms were not disclosed.

JLD-Laguë, a portfolio company of Champlain Financial Corporation, and Groupe Soucy led the acquisition of Location Sauvageau and Location Légaré in June 2022. The acquired group is a leading provider of short- and medium-term commercial and institutional vehicle rentals in Quebec, operating a fleet of 3,800+ utility vehicles. Financial terms were not disclosed, and the current management team will remain in place while Luc Soucy will serve as Executive Chairman.

r2p Group has acquired T.G. Baker Americas Inc. (TGBA), a provider of transit passenger information systems, to strengthen its presence and customer proximity in North America. TGBA, headquartered in Vaughan, Canada, will be integrated into r2p, with TGBA directors Brian Andrew and Sean Coster continuing as executives within r2p’s global management team.

Canada Cartage announced the acquisition of Rapid Delivery to expand dedicated fleet and transportation services across southwestern Ontario and the Great Lakes/northeastern U.S. Rapid Delivery, headquartered in London, Ontario, provides truckload, expedited, and dedicated transportation with cross-border freight capabilities. Rapid’s staff and drivers are largely being retained, with owner Rob Ward retiring and remaining in a consulting role during the transition.

Exchange Income Corporation (EIC) acquired Carson Air, a provider of fixed-wing air ambulance, air cargo, and flight school training services in Western Canada. As part of the transaction, Wynnchurch Capital sold its investment stake in Carson Air, which it had held since October 2015.

Andlauer Healthcare Group Inc. (AHG) closed its acquisitions of 100% of Skelton Canada Inc. and 49% of Skelton USA Inc. for aggregate consideration of approximately C$114.7 million (subject to working capital adjustments). The Skelton Companies specialize in refrigerated healthcare transportation and will join AHG’s healthcare supply chain platform while continuing to operate independently under existing leadership.

SpotHero signed an agreement to acquire Rover Parking, a leading Canadian consumer parking app, to expand its footprint and parking inventory across Canada. The deal is expected to close in the fourth quarter of 2020, and Rover’s CEO Tim Wootton will become Head of Canada after closing.

Enterprise Holdings Inc., through its Canadian subsidiary, has closed the acquisition of Discount Car and Truck Rentals, a Canadian car and truck rental company with more than 300 locations across the country. The deal includes all of Discount’s corporate-owned locations and the Quebec licensee’s daily rental businesses, expanding Enterprise’s fleet and mobility offerings in Canada.

Sageview Capital made a $60 million (USD) minority growth capital investment in Intelligent Imaging Systems Inc. (IIS) and its wholly owned subsidiary Drivewyze Inc. The financing is intended to help IIS/Drivewyze scale its connected truck platform in the commercial vehicle services market and drive continued SaaS revenue growth. As part of the investment, Sageview representatives Scott Stuart and Andrew Korn will join the IIS Board of Directors.

Birch Hill Equity Partners, a Canadian private equity firm, acquired Harbour Air, North America's largest seaplane airline operating routes from bases in Vancouver, Victoria, and Nanaimo. Capital West Partners served as Harbour Air’s exclusive financial advisor on the transaction.

TIP Trailer Services, a portfolio company of I Squared Capital, has completed the acquisition of Trailer Wizards, a Canadian commercial trailer rental and leasing provider. TIP plans to integrate Trailer Wizards with its existing Canadian business, Train Trailer Rentals, expanding its fleet, geographic footprint, and service capabilities across Canada.

TFI International Inc. acquired Toronto Tank Lines (TTL), a Hamilton, Ontario-based tanker transportation and storage company focused on food grade liquids, industrial chemicals, specialty oils, and waxes across Canada, the United States, and Mexico. TTL operates storage facilities (including heated/insulated tanks) and a fleet of roughly 75 tank trailers, and will operate as a standalone business unit within TFI International. Financial terms were not disclosed.

Don Wall (via a wholly owned acquisition company) and PHI, Inc. entered into an arrangement agreement to acquire all issued and outstanding shares of HNZ Group Inc. for CAD$18.70 per share in cash, valuing HNZ at approximately CAD$242.4 million. Under the transaction, PHI will acquire from the acquisition vehicle HNZ’s offshore operations conducted in New Zealand, Australia, the Philippines, and Papua New Guinea, while Don Wall will continue the remaining operations.