Gibson Energy (TSX: GEI) will sell its trucking business to Trimac Transportation, the companies announced today.
The C$100 million (a Canadian dollar currently is valued at US$0.75) sale will expand Saskatchewan-based Trimac’s bulk transportation business, which operates in Canada and the U.S.
“The addition of Gibson’s Canadian trucking business to our large portfolio of North American transportation businesses is a perfect example of how we continue to diversify and expand our business into new markets as part of our strategic plan,” Trimac CEO Matt Faure said in a statement.
Trimac also agreed to pay out bonuses to Alberta-based Gibson during the next four years, contingent on performance.
Gibson announced in 2018 that it planned to sell trucking business, and focus on petroleum storage and infrastructure.
“Through these divestitures, we have focused our business around our core energy infrastructure assets, significantly high-graded our quality of cash flows and have ensured that we are fully funded for all growth projects currently under construction,” Gibson CEO Steve Spaulding said in a statement.