TIP Trailer Services, a portfolio company of I Squared Capital, has received a No-Action Letter from Competition Bureau Canada allowing them to proceed with the acquisition of Trailer Wizards, a leading supplier of trailer rental and leasing services in Canada.
This follows the announcement of the proposed acquisition on 4 September 2019. As a result, the closing date for the acquisition is now expected to be in January 2020.
The acquisition of Trailer Wizards will make TIP one of the leading trailer service providers in Canada, further diversifying its geographic footprint, expanding its service offering and broadening its customer base. TIP first expanded from Europe into Canada in 2016 with the purchase of Train Trailer.
The acquisition of Trailer Wizards will add 21 locations, over 400 employees and a diversified fleet of over 23,000 units in Canada. At the closing of the acquisition Train Trailer Rentals and Trailer Wizards will both be part of the TIP Group and will be fully integrated over time.
Following the transaction, TIP’s Canadian division will have a combined fleet of over 33,000 trailers, reefers, chassis and flatbed/drop-deck configurations. The company will employ a staff of over 500 people, including approximately 300 mechanics, throughout almost 30 locations in Canada from Prince Edward Island to British Columbia.
The transaction is subject to customary closing conditions. TIP and I Squared Capital were advised by ING Bank N.V. HSBC Bank Canada and The Bank of Nova Scotia are lead debt arrangers on the transaction. Trailer Wizards and its parent entity Lions Gate Trailers Ltd. were advised by Sequeira Partners.