Cargojet Acquires the Cargo Assets of Georgian Express Ltd.
July 17, 2007
MISSISSAUGA, ON, /CNW/ - Cargojet (the "Fund") (TSX: CJT.UN), Canada’s Cargo Airline, today announced it has signed an asset purchase agreement to acquire the cargo business operations of Georgian Express Ltd., of Mississauga, ON. This transaction is valued at $1.4 million plus the cost of certain aircraft inventories.
Georgian Express is a specialized air cargo operator serving numerous Canadian markets providing dedicated cargo lift to major couriers and transportation companies. Georgian Express has operated a cargo business since 1994 and generates annual revenues of approximately $10M. Currently the fleet consists of three Beech 1900 freighter aircraft and four Cessna Caravan freighter aircraft. This fleet operates approximately 10,500 flight segments per year in support of the cargo operation.
“The acquisition of Georgian’s air cargo business will allow Cargojet to introduce a new service to better meet the needs and requirements of our customers. This new brand and service, CARGOJET REGIONAL, will allow us to bring quality air cargo services to small and medium sized markets and extend connectivity to Cargojet’s national overnight air cargo network”, said Ajay K. Virmani, President & Chief Executive Officer of Cargojet.
“We are delighted to see our air cargo business evolve and grow within the strong and expanding Cargojet brand”, said Paul Mulrooney, President, Georgian Express Ltd.
The acquisition is subject to customary conditions and regulatory approvals, and is expected to close by early October 2007.
Cargojet is Canada’s leading provider of time sensitive overnight air cargo service. Cargojet operates its network from coast to coast transporting over 550,000 pounds of sensitive air cargo to thirteen major cities in Canada each business night. Cargojet operates 11 Boeing 727-200 Advance Freighter aircraft and has recently announced plans to introduce a Boeing 757-200 Extended Range Heavyweight freighter to its fleet.
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