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March 01, 2008  |   Comments (0)   |   Post a comment

STA closes Canadex acquisition, gains credit facility


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TORONTO — Student Transportation of America Ltd. (STA) has competed its acquisition of Canadex Resources Ltd.

The purchase, valued at $41.8 million in Canadian dollars, is expected to boost STA’s Canadian revenue by 67 percent, increase cash flow by 15 percent and expand its operations in and around Toronto. It also makes STA the fourth largest provider of pupil transportation services in Canada, with nearly 1,000 buses and about $40 million (Canadian) in annual revenue.

STA made its initial offer to Canadex shareholders in November.

Canadex’s school bus transportation division will continue to operate under the name Parkview Transit.

STA also secured increased commitments under its existing senior credit facilities by $40 million. Company officials said that the increase in commitments will provide working capital and support the company’s continued growth.

 


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