OKOTOKS, AB, May 16, 2013 /CNW/ - (TSX:MTL) Mullen Group Ltd. ("Mullen Group" and/or the "Corporation") announced today the signing of an agreement to acquire Jay's Moving & Storage Ltd. ("Jay's" and/or the "Company"). The transaction is expected to close on June 1, 2013, subject to the completion of conditions typical for a transaction of this nature.
Jay's is a private corporation owned by Dennis Doehl based in Regina, Saskatchewan. The Company has been in business since 1964 and is a recognized leader in the less-than-truckload ("LTL") transportation business within the Province of Saskatchewan operating 11 full-service terminals and warehouses, with over 450 employees and a fleet of over 600 trucks and trailers. In 2010, Jay's was named Saskatchewan's Business of the Year by the Saskatchewan Chamber of Commerce.
"We are extremely pleased to add Jay's to our organization. Dennis Doehl is a true entrepreneur starting with just a couple of trucks nearly 50 years ago. His company has an exceptional reputation for providing outstanding service to its customers and we look forward to working with the management team to enhance the service offerings to Mullen Group's existing customers and realizing on the potential synergies resulting from this acquisition. This is a great company with an established history and a strong management team. As such, we anticipate a quick and smooth transition. I am also extremely pleased to announce that Dennis Doehl has agreed to remain with Jay's for the balance of the year to help with the transition", stated Murray K. Mullen, Chairman and Chief Executive Officer.
Jay's will be operated as a stand-alone business within Mullen Group and is expected to add annual revenue of approximately $35.0 to $40.0 million to our consolidated results and generate operating margins consistent with other businesses in the Trucking/Logistics segment. The purchase price will be funded from existing cash reserves.
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. Mullen Group relies on litigation protection for "forward-looking" statements.
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.