STA closes Canadex acquisition
The purchase, valued at $41.8 million, 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 in annual revenue.
Canadex’s school bus transportation division will continue to operate under the name Parkview Transit; its smaller energy division will be subject to further review by STA’s board of directors and management team.
“This is a great acquisition for us,” said Denis Gallagher, STA chairman and CEO. “Parkview Transit’s school bus operations are a perfect fit with our existing operations and add to our core strategy of building regional density in Ontario.”
STA made its initial offer to Canadex shareholders in November.
