Mullen Group Ltd. Announces Acquisition of Canadian Hydrovac Ltd.
June 19 2018 - 6:33PM
(TSX:MTL) Mullen Group Ltd. ("
Mullen Group",
"
We", "
Our" and/or the
"
Corporation") is pleased to announce that it has
entered into a letter of intent to acquire the shares of Canadian
Hydrovac Ltd. ("
CHL" and/or the
"
Company"). The transaction is expected to close
on July 1, 2018, subject to the completion of conditions customary
for a transaction of this nature and the approval of the
transaction by the Toronto Stock Exchange.
CHL is a private company owned by Dan Shemanchuk
which is based in Sherwood Park, Alberta. CHL is an industry leader
in providing hydrovac services to the midstream, pipeline,
construction and municipal sectors of western Canada. In addition
to operating from its head office in the refinery complex of the
greater Edmonton region and Alberta's Industrial Heartland, CHL has
additional operating branches in the Lower Mainland of British
Columbia and Saskatchewan. The Company's workforce consists of
approximately 80 skilled employees and its fleet consists of over
50 specialized pieces of equipment including: hydrovac units,
vacuum units and various other pieces of support equipment.
"This acquisition is an excellent example of how
our organization approaches acquisitions. Not only do we acquire an
industry leader in a growth market, we now have a real opportunity
to generate margin improvement from the synergies associated with
combining the assets with our existing hydrovac and specialized
combo units business in western Canada, including those that we
will acquire with the recently announced AECOM purchase. I am very
pleased that Dan Shemanchuk will continue to lead CHL. He has built
a company based upon quality, customer service and safety by
investing in first class operating equipment with a team of skilled
and dedicated employees. Now with our balance sheet and strong
market presence here in western Canada I feel confident that the
CHL team under Dan's leadership will capitalize on many future
opportunities," commented Mr. Murray K. Mullen, Chairman and Chief
Executive Officer.
Mullen Group will operate CHL as a standalone
Business Unit within our Oilfield Services segment and this
acquisition is expected to add approximately $25.0 million in
annual revenue to Mullen Group with margins consistent with our
Specialized Services Business Units within the Oilfield Services
segment. Mullen Group will fund this transaction through cash and
the issuance of Mullen Group shares. With the recently announced
acquisition of AECOM's Canadian Industrial Service Division,
combined with our Recon Utility Search L.P. and Cascade Energy
Services L.P. Business Units, Mullen Group will have one of the
largest fleets of hydrovacs in western Canada.
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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