OKOTOKS, AB, Dec. 29 /CNW/ - (TSX - MTL) Mullen Group Ltd. ("Mullen Group") announced today a number of
transactions that will expand its fluid handling and hauling
capabilities in northern Alberta and northeastern British Columbia.
"Acquiring businesses leveraged to fluid hauling and the production
services segment of the oil and gas industry has been a strategic focus
of the Mullen Group for several years. New drilling techniques and
multi-stage fracturing are creating new opportunities associated with
the development of resource plays throughout North America. These
acquisitions provide Mullen Group with additional equipment and an
experienced workforce enabling our existing production services
businesses to service the needs of our customer base," stated Murray
Mullen, Chairman and CEO.
Mullen Group closed the acquisition of Radium Industrial Solutions GP
Ltd. in November, a fluid hauler based in Grande Prairie. This
business is being operated as part of Cascade Energy Services L.P.
("CES") and has expanded CES's operations in the Grande Prairie region.
Mullen Group has also entered into an agreement to acquire Panda Tank &
Vac Truck Services Inc. ("Panda") a fluid hauler also based in Grande
Prairie. The agreement is subject to, among other things, Mullen
Group's completion of its due diligence. This transaction is scheduled
to close January 1, 2011. Panda will be operated as a stand-alone
business unit and will strengthen Mullen Group's market presence in and
around Grande Prairie, Fort St. John and Dawson Creek, while also
expanding Mullen Group's geographic reach into Grande Cache.
Furthermore, Mullen Group has entered into a letter of intent to acquire
additional fluid hauling assets from a private company based in
northern Alberta, which we expect to close in early January, 2011.
These assets will be integrated into Mullen Group's existing fluid
"The addition of these three businesses to our fluid hauling operations
not only expands the geographic coverage we can provide to our
customers, it provides us with an opportunity to leverage our existing
infrastructure to achieve economies of scale. We anticipate that
these three acquisitions, once completed, will increase Mullen Group's
annual consolidated revenues by approximately $42.0 million. In terms
of operating profitability we expect these businesses will generate
operating income (EBITDA) margins similar to Mullen Group's current
margins within the first six months of the acquisition," said Steve
Lockwood, President and Co-CEO.
Mullen Group is a company that owns a network of independently operated
businesses. Today the Mullen Group is recognized as the largest
provider of specialized transportation and related services to the oil
and natural gas industry in western Canada and as one of the leading
suppliers of trucking and logistics services in Canada - two sectors of
the economy in which Mullen Group has strong business relationships and
industry leadership. Mullen Group provides management and financial
expertise, technology and systems support to its independent
businesses. Mullen Group is a publicly traded corporation listed on
the Toronto Stock Exchange under the symbol "MTL". Additional
information is available on our website at www.mullen-group.com.
SOURCE Mullen Group Ltd.
For further information: For further information:
Mr. Murray K. Mullen - Chairman and Chief Executive Officer
Mr. Stephen H. Lockwood - President and Co-Chief Executive Officer
121A, 31 Southridge Drive
Okotoks, Alberta, Canada T1S 2N3
Tel: (403) 995-5200
Fax: (403) 995-5296