OKOTOKS, AB, Sept. 1, 2011 /CNW/ - (TSX: MTL) Mullen Group Ltd. ("Mullen Group") is pleased to announce that effective September 1, 2011, it closed its acquisition of Polaris Petroleum Ltd. ("Polaris"), a privately owned company located in Drayton Valley, Alberta. Polaris provides drilling and production fluid services to oil and gas companies operating in the Cardium resource play.
This acquisition is expected to increase Mullen Group's consolidated revenues by approximately $22.0 million on an annualized basis and generate operating margins consistent with Mullen Group's other production services businesses. Polaris will be operated as a stand-alone business unit and will expand Mullen Group's market presence into Drayton Valley.
"Acquiring businesses leveraged to fluid hauling and the production services segment of the oil and gas industry has been and continues to be a strategic focus of the Mullen Group. The addition of Polaris to our production services operations expands Mullen Group's geographic coverage into the heart of the Cardium play, an area in which our oil and gas customers continue to invest. We are also pleased that the owners of Polaris, Monte and Cindy Waronek, have agreed to stay on and run the day-to-day operations of Polaris," stated Stephen Lockwood, President and Co-Chief Executive Officer.
This news release may contain forward-looking statements that are subject to risk factors associated with the oil and 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.