Mullen Group Ltd. Announces Acquisition of AECOM's Canadian Industrial Services Division
June 11 2018 - 8:00AM
(TSX:MTL) Mullen Group Ltd. ("
Mullen Group",
"
We", "
Our" and/or the
"
Corporation") is pleased to announce that it has
entered into an agreement with AECOM (NYSE:ACM) to acquire the
business and assets of AECOM's Canadian Industrial Services
Division ("
AECOM ISD"), which operates largely
within the heavy oil and oil sands regions of Alberta. AECOM ISD
employs over 350 people and operates in excess of 250 pieces of
specialized equipment including: pressure trucks, hydrovacs, vacuum
trucks, combo units, flushby units, fluid hauling equipment and
various other pieces of support equipment. AECOM ISD service
offerings are complementary to Mullen Group's Oilfield Services
segment and it is Mullen Group's intention to consolidate and
operate AECOM ISD through our Cascade Energy Services L.P., E-Can
Oilfield Services L.P. and Heavy Crude Hauling L.P. Business Units.
This acquisition is expected to add approximately $70.0 million in
annual revenue to Mullen Group.
"This opportunity is a perfect synergistic fit
in our organization given that the business and assets of AECOM ISD
virtually overlap three of our Business Units in the Production
Services division of our Oilfield Services segment. The fact that
the services sector of the oil and natural gas industry in western
Canada remains very competitive reinforces our belief that only
those companies with the right cost structure and strong balance
sheet will survive today's challenging market conditions and be
positioned to capitalize on future opportunities when growth
returns to the oil and natural gas industry. With this acquisition
not only do we grow and strengthen three of our Business Units, we
add a quality work force, which is a real challenge for oilfield
service companies in today's environment of low unemployment and
tight labour markets," commented Mr. Murray K. Mullen, Chairman and
Chief Executive Officer.
The transaction is expected to close on June 25,
2018, subject to closing conditions customary for a transaction of
this nature. Mullen Group will fund this transaction through cash.
Both Mullen Group and AECOM will be working collaboratively to
ensure a successful and seamless transition process for all
customers.
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
AECOM (NYSE:ACM)
Historical Stock Chart
From Mar 2024 to Apr 2024
AECOM (NYSE:ACM)
Historical Stock Chart
From Apr 2023 to Apr 2024