Trimac Transportation System is expanding its bulk hauling transportation businesses with the purchase of Universal Transport Inc. of Rapid City, S.D., and Les Calkins Trucking Inc. of Lodi, Calif.
Trimac is paying cash, but declined to disclose a price.Trimac has more than twenty trucking subsidiaries in the United States and Canada, according to a spokesman for the company. It operates 764 tractors in Canada and 472 in the United States, the spokesman said.
Universal operates about 100 tractors and terminals in Rapid City, Ft. Collins, Colo., Salt Lake City and satellite terminals in Chamberlain and Spearfish, S.D.
Les Calkins operates between 70 and 80 tractors. Its main terminal is Lodi, but it has a satellite facility in Fernley, Nev. Both companies haul cement, coal, lime, wood and aggregates and will be run by their existing managements, Trimac Transportation said.
A source inside Universal said no changes in operation are anticipated. He added there was little apprehension among Universal's work force about being managed by a Canadian company.
Both Universal and Les Calkins were purchased from Wyodak Resources Development Corp., a coal company in Gillette, Wyo. Wyodak is a subsidiary of Black Hills Power and Light Co. of Rapid City, S.D., while the utility is a unit of Black Hills Corp., a holding company.
Trimac expects approval of the purchase from the Interstate Commerce
Commission within about 90 days. Neither Universal nor Les Calkins has operating authority in Canada so no go-ahead is needed from Canada's National Transportation Agency, said Joe Diamond, NTA chief, mergers and acquisitions. The NTA is the Canadian equivalent of the ICC.
If Canadian truck firms buy U.S. carriers that have no domestic operations in Canada, or if the U.S. carrier only transports freight between the United States and Canada, the Canadian carrier doesn't have to notify the NTA of the
purchase, he said.
Nor is approval needed in the province of Alberta, according to Audrey Galling, Alberta's Motor Transport Board's manager of operating authorities.
She said if Universal and Les Calkins were going to be operated separately
from Trimac, they would be allowed six single trips per company each year into Alberta, she said. If they wanted more, or wanted permanent authority, they would have to apply for an extra-provincial operating permit, she said.
Trimac said Universal and Les Calkins will add C$25 million to Trimac's annual revenue. In 1987, Trimac Transportation reported sales of C$185 million.
Trimac Transportation is the third largest bulk highway hauler in North America and the largest in Canada.
Among its U.S. subsidiaries are Liquid Transporters Inc. of Louisville, Ky., and Quality Service Tank Lines Inc. of San Antonio, Tex.
Although Trimac operates to most of Canada and the United States, Andrew Zaleski, Trimac Transportation's president, said the purchase represents a significant expansion into geographic areas where Trimac has limited services.