Mullen Group Ltd. Announces the Acquisition of RDK Transportation Co. Inc.
September 05 2017 - 2:24PM
(TSX:MTL) Mullen Group Ltd. ("
Mullen Group",
"
We", "
Our" and/or the
"
Corporation") is pleased to announced that
effective September 1, 2017, it closed the acquisition of RDK
Transportation Co. Inc. ("
RDK"), a privately owned
transportation company based in Saskatoon, Saskatchewan (the
"
Transaction"). Concurrent to the closing of
the Transaction, Mullen Group entered into an agreement to acquire
the facility which RDK operates from in Saskatoon.
RDK operates an asset light owner operator
business model and services the agricultural, construction and
industrial sectors by providing truckload deck services throughout
Canada and the continental United States. Their fleet
consists of 80 power units and 107 trailers including step decks,
double drops, removal goose necks ("RGN") and
specialized bulk trailers based in Saskatoon, Saskatchewan.
RDK employs 25 personnel and 68 leased operators.
This acquisition builds on Mullen Group's
strategy of making investments in the Trucking/Logistics segment
that contribute to the consolidation of the flat deck and RGN
space, builds on the Corporation's asset light business model and
benefits from our strategy of building out Mullen Group's network
of new terminals situated in geographically strategic regions.
"I am delighted to have RDK join the Mullen
Group of companies. RDK is a first class trucking company
that will fit very well within our corporate culture and extend our
deck services into Saskatchewan. We will operate RDK as a
stand-alone Business Unit and I am pleased to advise that Rod
Friesen, one of RDK's former owners, has agreed to stay on with RDK
and serve as its Business Unit leader. We expect that RDK
will immediately benefit by leveraging our Trucking/Logistics
network to provide more delivery options to their customers.
As well, RDK will have access to our systems and critical mass
buying power that will help RDK better manage their cost
structure. Furthermore, RDK will benefit from our technology
platform, MoveItOnline," said Mr. Murray K. Mullen, Chairman, Chief
Executive Officer and President.
Mullen Group expects the Transaction will
contribute in excess of $20.0 million of annualized revenue and
will be immediately accretive. RDK generates margins that are
in line with Mullen Group's non-asset based Business Units in the
Trucking/Logistics segment and management believes that once
synergies are realized, margins will improve. RDK will be
operated as an independent, self-managed Business Unit within
Mullen Group's Trucking/Logistics segment.
This news release may contain forward-looking
statements that are subject to risk factors associated with the oil
and natural gas business and the overall economy. Mullen
Group believes that the expectations reflected in this news release
are reasonable, but results may be affected by a variety of
variables. The forward-looking information contained herein
is made as of the date of this news release and Mullen Group
disclaims any intent or obligation to update publicly any such
forward-looking information, whether as a result of new
information, future events or results or otherwise, other than as
required by applicable Canadian securities laws. Mullen Group
relies on litigation protection for "forward-looking"
statements.
Mullen Group is a company that owns a network of
independently operated businesses. The Corporation is
recognized as one of the leading suppliers of trucking and
logistics services in Canada and provides a wide range of
specialized transportation and related services to the oil and
natural gas industry in western Canada - two sectors of the economy
in which Mullen Group has strong business relationships and
industry leadership. The corporate office provides the
capital and financial expertise, legal support, technology and
systems support, shared services and strategic planning 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 or on SEDAR at
www.sedar.com.
For further information, please contact:Mr.
Murray K. Mullen - Chairman of the Board, Chief Executive Officer
and PresidentMr. P. Stephen Clark - Chief Financial OfficerMr.
Richard J. Maloney - Senior Vice President
121A - 31 Southridge DriveOkotoks, Alberta,
Canada T1S 2N3Telephone: 403-995-5200Fax:
403-995-5296
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