Contact

t. 416 929 2678
Adelaide Place,
Suite 1414,
181 University Ave
Toronto, Canada
M5H 3M7
info@alexandercapital.ca


Coin

PTR sold to Lion's Gate Trailers with help from Alexander Capital Group

Its hammer down for Burnaby-headquartered Lions Gate
Trailers Ltd.

 

 

 

 

, which recently established a formidable
beachhead in Eastern Canada with its acquisition of Provincial
Trailer Rentals (PTR) and its sister company, Contor
Terminals, of Mississauga, Ontario.
Lions Gate Trailers rents, repairs and sells semi-trailers out
of locations in Coquitlam, Edmonton and Calgary. Buoyed by
the growth of its western Canadian operations, the company
decided to return to Ontario after leaving a decade ago.
“We thought it was time to become a national company,”
said Lions Gate president and CEO Carl Vanderspek.
He added that the company, which has approximately 5,300
trailers in its inventory, has been enjoying annual revenue
growth of 30 per cent in recent years.
The addition of an intermodal terminal depot is a first, but
will allow the company to learn more about the intermodal
business, which could provide future expansion opportunities,
according to Vanderspek.
“We didn’t intend to buy a container company, but it was
in the package.
“We looked at it, and we thought it did add to the mix so
we purchased it. But the trailer rental company was our first
target.”
PTR has facilities in Mississauga, Montreal, Hamilton and
Cambridge.
The transaction closed last month, but it had been under
consideration since August.
Vanderspek didn’t disclose financial terms of the acquisition,
but confirmed it was a cash deal.
Provincial Trailer Rentals and Contor Terminals will continue
under their current management, he said, and no jobs
were lost as a result of the acquisition.
Reprinted from Business in Vancouver December 19–25, 2006 News
Richard Lam
Truck stop: trucks and trailers set for hauling goods sit in Lions Gate’s Lower Mainland yard
Local semi-trailer truck company
rolls back into Eastern Canada
Burnaby’s Lions Gate Trailers Ltd. acquires two Ontario companies
as part of its corporate game plan to become a national enterprise
Lions Gate has already taken steps to boost Provincial Trailer’s
inventory of approximately 3,700 units with an order for
200 more. It hopes to raise that inventory to 5,000 units within
the next 18 months, Vanderspek said.
A cash shortage previously limited Provincial Trailers’ ability
to expand because it didn’t have the inventory it needed to
grow, according to Vanderspek.
He added that integration of accounting
and customer support systems will result
in better service and help attract national
customers.
It also provides synergies for existing
Lions Gate Trailers’ clients who were
already clients of Provincial Trailer Rentals
in Ontario.
“This acquisition allows Lions Gate and
PTR to provide their customers a full range
of services from Vancouver to Quebec City,”
PTR president Gord Box told Today’s Trucking.
Vanderspek said the shift in the global
supply chain to containerization will boost
Lions Gate PTR’s supply of container chassis
trailers, which, along with dry vans and reefer or refrigerated
units, are now one of the top three trailer types in demand.
“When we started in the business there were only two types
[of trailers]. That was 43 years ago. Now I think we have about
70 types of trailers,” said Vanderspek.
Lions Gate is also a dealer for Great Dane Trailers.
Continued demand is expected to fuel annual company
growth of at least 10 per cent.
“It looks very strong to us,” said Vanderspek. “We wouldn’t
be expanding at the rate we are if we were pessimistic.”
Strong economic growth in Western Canada has driven
demand for trucking services.
Trucking remains the dominant mode for transporting
goods between Canada and the U.S., according to Statistics
Canada.
In 2004, about 53 per cent of exports to the U.S. and 78 per
cent of imports were moved by truck. In the
same year, there were 358 B.C. trucking companies
with annual revenues in excess of $1
million, a 7.6 per cent increase over 2003.
According to the B.C. Trucking Association,
approximately 66 per cent of goods
exported from the province were destined
for the U.S., with 46 per cent transported
by truck. Almost a third (31 per cent) of all
commodities exported from B.C. was shipped
by truck. For-hire truck traffic is expected to
increase by an average annual growth rate
of 2.3 per cent between 1984 and 2010. The
value of goods passing through the Pacific
Highway crossing rose from $7.5 billion in
1990 to $19.1 billion in 2003. Higher port
traffic has also increased demand for trucking services.
Duncan Wilson, a spokesman for the Vancouver Port
Authority, said excellent progress is being made by trucking
companies signing new licence agreements needed to gain
port access as required by the port’s new trucking policy. As
of December 13, 80 of 391 existing licence holders had reapplied.
The deadline is January 15, 2007.

Source: Business in Vancouver

Back to News