OKOTOKS, AB, April 16, 2021 /CNW/ - (TSX: MTL)
Mullen Group Ltd. ("Mullen Group", "We",
"Our" and/or the "Corporation") is pleased to
announce that it has acquired the Bandstra Group of Companies
("Bandstra Group"), including Bandstra Transportation
Systems Ltd. ("Bandstra Transportation") and Babine Truck
& Equipment Ltd. ("Babine"). A definitive share
purchase agreement was signed, and the acquisition closed on
April 16, 2021.
The Bandstra Group was established in 1955 and has a long
history of servicing customers in the Province of British Columbia through its two primary
operating businesses; Bandstra Transportation and Babine, employing
an experienced and dedicated workforce of over 400 British Columbia residents.
Bandstra Transportation, based in Smithers, British Columbia, provides a wide
range of transportation and logistics services to communities in
northern British Columbia
including truckload; general freight; less-than-truckload; and
specialized hauling services. Customers are serviced through
a network of eight (8) owned and three (3) leased
facilities. They operate a fleet of approximately 180 power units,
360 trailers and 70 pieces of support equipment, generating
approximately $65.0 million in
annualized revenue.
Babine is an Original Equipment Manufacturer ("OEM")
dealership that operates from three (3) locations in British Columbia: Smithers, Prince
George and Prince
Rupert. In addition to providing sales of OEM trucks
and trailers, Babine provides equipment and maintenance to Bandstra
Transportation as well as parts and service work that supports the
natural resources, energy and transportation industries in northern
British Columbia. Babine generates revenue of approximately
$20.0 million annually.
"This is another gem of a
company that I am delighted to have in our growing
organization. The Bandstra name is well known to many in the
transportation industry. Founded 65 years ago, this family
owned business has grown to be one of the largest diversified
transportation companies in British
Columbia earning a reputation for quality service and
community involvement.
"I want to take this
opportunity to welcome the Bandstra Group to our
organization. I know from discussions and my past experience
that this is a very difficult decision for the Bandstra
family. Here is a company that has been family owned and
operated for decades, so for the Mullen Group to be chosen as the
acquiring company speaks to our reputation. We have a history
of acquiring family owned businesses and the experience necessary
to ensure a smooth transition. I am also pleased that the
senior management team, including several of the family members,
have agreed to continue to manage and oversee the business.
No one knows the Bandstra Group better than the Bandstra
family.
"I firmly believe the
transportation and logistics sector of the economy is being
transformed by the digital revolution and the emergence of
e-commerce as a dominant trend in the retail space. The
acquisition of the Bandstra Group will enhance the service
capabilities of our organization on the west coast and ensure we
can compete with any transportation provider," commented
Mr. Murray K. Mullen, Chairman and Chief Executive
Officer.
Bandstra Transportation will operate within Mullen Group's
Logistics & Warehousing segment and Babine will operate within
the Specialized & Industrial Services segment. Both are
expected to generate returns consistent with their respective
operating segment. Mullen Group funded this acquisition from
existing cash.
About Mullen Group Ltd.
Mullen Group is one of Canada's
largest logistics providers. Our network of independently
operated businesses provide a wide range of service offerings
including less-than-truckload, truckload, warehousing, logistics,
transload, oversized and specialized hauling transportation.
In addition, we provide a diverse set of specialized services
related to the energy, mining, forestry and construction industries
in western Canada, including water
management, fluid hauling and environmental reclamation. 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.
Disclaimer
This news release contains forward-looking information within
the meaning of applicable securities legislation about the
acquisition of Bandstra Group. The forward-looking
information is based on certain assumptions made by us in light of
our experience and perception of current and historical
conditions. Although Mullen Group believes that the
forward-looking information contained in this news release is
reasonable, there can be no assurance that such expectations will
prove to be correct. Readers are cautioned not to place undue
reliance on forward-looking information as actual results may
differ materially from those expressed or implied.
Forward-looking information in this news release is identified
by the words "will" and "anticipates" and includes suggestions of
future outcomes, including about the future expansion of our
business in western Canada.
Developing forward-looking information involves reliance on a
number of assumptions and considerations of certain risks and
uncertainties, some of which are specific to Mullen Group and
others that apply to the industry generally. The assumptions on
which our forward-looking information is based include other risks
and uncertainties described from time to time in the filings Mullen
Group makes with securities regulatory authorities.
The risks and uncertainties that could cause our actual results
to differ materially, include, but are not limited to: risks
associated with the trucking/logistics business; the overall
economy; and the risks relating to the current and potential
adverse impacts of the novel coronavirus pandemic.
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
securities laws.
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SOURCE Mullen Group Ltd.