Press release from PR Newswire
MULLEN GROUP LTD. TO ACQUIRE HI-WAY 9 GROUP OF COMPANIES
Tuesday, May 03, 2011
OKOTOKS, AB, May 3 /PRNewswire-FirstCall/ - (TSX: MTL) Mullen Group Ltd. ("Mullen Group" and/or the "Corporation") announced today the signing of an agreement to acquire Hi-Way 9 Express Ltd., Load-Way Ltd., Streamline Logistics Inc. and 1006213 Alberta Ltd. (collectively, "Hi-Way 9") in a cash and shares transaction. These companies are private family-owned corporations based in Drumheller, Alberta, which have been in business since 1969. Hi-Way 9 is a recognized leader in Alberta in the less-than-truckload ("LTL") transportation business.
"We are extremely pleased to add Hi-Way 9 to our growing business and are very confident that they will work closely with our Grimshaw Trucking group to significantly enhance our LTL business and service to customers in Alberta. Having been in business for over 40 years, Hi-Way 9 has built an exceptional reputation for providing outstanding service to their customers. We look forward to working with Hi-Way 9's management team on enhancing the services offerings to Mullen Group's existing customers and realizing on the potential synergies resulting from this acquisition. This is a quality - best in class - company with an established history, a strong management team and strong systems and as such we anticipated a quick and smooth transition. I am also extremely pleased to announce that three of the key family members involved in Hi-Way 9, Dean Kohut, President; Darrell Kohut, Vice President, Operations and Heather Colberg, Vice President, Administration, have agreed to remain with Hi-Way 9 to oversee its day to day operations," stated Stephen H. Lockwood, President and Co-Chief Executive Officer.
This investment is expected to add approximately $50 million to Mullen Group's consolidated revenues and generate operating margins consistent with the other businesses in Mullen Group's Trucking/Logistics segment.
The transaction is expected to close on June 1, 2011, subject to the completion of due diligence, regulatory approvals and other conditions typical for a transaction of this nature. Mullen Group will fund the purchase price from its existing cash reserves and by the issuance of common shares.
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: <p align="center"> Mr. Murray K. Mullen - Chairman and Chief Executive Officer </p> <p align="center"> Mr. Stephen H. Lockwood - President and Co-Chief Executive Officer </p> <p align="center"> 121A, 31 Southridge Drive </p> <p align="center"> Okotoks, Alberta, Canada T1S 2N3 </p> <p align="center"> Tel: (403) 995-5200 </p> <p align="center"> Fax: (403) 995-5296 </p>