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Nautic Partners Completes Acquisition of Canada Cartage

Providence, RI

Nautic Partners, LLC, a private equity firm with more than $2.3 billion of capital under management, today announced that it has completed the acquisition, in partnership with management, of the operations of Canada Cartage from Canada Cartage Diversified Income Fund (TSX: TRK.UN). Toronto-based Canada Cartage is a leading national provider of dedicated trucking services in Canada.

Founded in 1914, Canada Cartage operates a fleet of 1,500 trucks and 1,900 trailers and has approximately one million square feet of distribution and warehousing space in 12 cities across Canada. As a dedicated trucking service provider, the majority of its fleet and drivers are located at customers’ facilities and its trucks are often branded with the logos of their customers. Canada Cartage’s services are integrated with the operations of its customers and provide the benefits of a dedicated trucking service without the need to maintain a fleet of trucks and trailers, information services, logistics management capabilities, and drivers.

“Canada Cartage’s dedicated service model is an attractive value proposition that has resulted in long term customer relationships,” said Brad Wightman, Managing Director of Nautic. “We believe there are attractive growth opportunities with these existing customers and new customers looking to an outsourced trucking solution that allows them to focus on core competencies and save expenses of managing their own trucking fleets.”

“We are excited to partner with Nautic given their prior experience investing in the transportation industry,” said Jeff Lindsay, CEO of Canada Cartage. “We look forward to leveraging this experience as well as their financial and strategic support, as we build upon our prior success and continue to grow the business, both organically and through acquisitions.”

CIBC arranged the senior debt financing for the transaction.

Canada Cartage is Nautic Partners’ second investment from its most recent fund, Nautic Partners VI, LP. In May 2007, Nautic completed the acquisition of Respond2 Communications. Canada Cartage exemplifies Nautic’s continued interest in investing in attractive outsourced business service providers. Nautic has a successful history of transactions in the business services sector including Oasis Outsourcing, LLC, Imaging Technology Services, LLC, ConvergeOne, LLC, Contec Holdings, LLC and Roadrunner Freight Systems, Inc.

About Canada Cartage Diversified Income Fund

Canada Cartage Diversified Income Fund (TSX: TRK.UN) is a leading national provider of transportation services, specializing in outsourced, customer-located dedicated trucking services.  With origins dating back to 1914, Canada Cartage offers a number of transportation services including dedicated trucking, warehousing and distribution, general cartage, logistics and moving services. Canada Cartage has a presence in 12 cities across Canada and operates a fleet of over 1,500 trucks, 1,900 trailers and more than one million square feet of distribution and warehousing space. More information about Canada Cartage is available at www.canadacartage.com.