One of Canada's major trucking carriers has decided it's a good time to withdraw from the overnight air courier business.
CP Trucks Ltd. of Toronto plans to sell Express Airborne, its courier division, to Mayne Nickless Canada Inc., the parent company of Loomis Courier Ltd. of Vancouver. CP Truck's used Airborne Express as its U.S. partner on transborder shipments.The sale to Loomis for an undisclosed sum is scheduled to be finalized by June 1987, pending government approval. At that time, all equipment, vehicles, operations and employees of Express Airborne will come under the ownership and direction of Loomis Courier.
"With deregulation approaching in Canada, we've decided to concentrate on our core road transport activities," said John Sanderson, Vice-President of Public Affairs, CP Trucks, who added the company will continue to be involved in its intercity pick up and delivery business of small parcels.
CP Trucks, with annual revenues in excess of C$400 million, found the courier trade to be fiercely competitive. Said Mr. Sanderson: "The combined services of Express Airborne and Loomis will be much more strongly positioned to meet the challenges of competition under the deregulated environment of 1988 and beyond."
Loomis is part of the worldwide multi-modal transportation conglomerate controlled by Mayne Nickless Ltd. of Melbourne, Australia, with annual
revenues of $2.0 billion and more than 24,000 employees.
The courier market in Canada is undergoing significant structural changes. In fact, CP Trucks' sale is the third significant divestiture in the past year.