Corporate Announcement

As some of you may have noticed, we have been recently partnering with Challenger on some large freight contracts. There have been several reasons for this. Their size has made it easier to acquire some large accounts (Wrigley's is a prime example) and we also have been negotiating a deal to sell to them.

As we all know, speculation and rumors can adversely affect staff and customers. I would like to put an end to the rumors and I am pleased to announce that we have come to an agreement to sell Lodwick Transport to Challenger and the deal will close sometime in July.

Lodwick Transport will continue to operate as its own entity with its own independent corporate identity. Both Concord and Beaverton operations will remain the same. Building leases have been signed with options to renew.

Challenger is the 5^th largest trucking fleet in Canada and the second largest private fleet in Canada. Presently they operate 1500 trucks and 3300 trailers. They own Elgin Motor Freight, Cam Hiltz, and Motor City Express. In addition to these divisions Challenger also operates a special commodities division where they haul flat bed, rolltite and heavy equipment. They have a full logistics division, which offers brokerage, and rail service as well as a small reefer division, which we hope to grow with them. It is still my goal to at least double the Lodwick reefer division. We feel that with the backing of the Challenger corporate office we will be able to achieve this goal fairly quickly.

Challenger has proven that in a declining market they could sustain growth while many, including Lodwick, have had negative or stagnant growth. With Challenger's current infrastructure and the extra corporate personnel backing will allow us to easily take on 20 trucks fairly rapidly.

We do acquire some significant benefits with having access to Challenger and the Challenger corporate location in Cambridge and the amenities that come with that. They have ultra-modern facilities such as drive through indoor fueling and inspection bays, wash bay, bunk rooms, showers, laundry facilities, cafeteria, 24 hour dispatch, breadown service, newer trucks, etc...

This is a positive change that will allow growth while keeping our original corporate image intact. We will operate as a distinct reefer division, much like their special commodities division. We will retain the Lodwick Transport name and blend it with the Challenger striping design. We would like our drivers to be involved in this final transition by designing a distinct striping scheme for the Lodwick reefer division. We would like to run a contest for the best striping scheme, with the contest closing on June 30^th. Subject to approval of the design, an award will be presented to the creator of the chosen design.

 

I would like to add that both Gord and I have signed long-term contracts and are expecting to drive the growth of this company forward.

I would like to close this announcement by thanking everyone that works at Lodwick Transport. Your efforts have been greatly appreciated and I want to thank you for your future efforts. We will strive to continue to make Lodwick Transport a great place to work. I know this is a lot to absorb and I want you to know that my door is open and my cell phone is on. I want you all to be comfortable with our decision and will endeavor to make myself available for questions.

Thank-you

Gerry Lodwick

President