Mullen Group Ltd. to Acquire Jay's Moving & Storage Ltd.
OKOTOKS, AB, May 16, 2013
OKOTOKS, AB, May 16, 2013 /PRNewswire/ - (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 $35.0to $40.0million 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"
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.
Mr. Murray K. Mullen - Chairman and Chief Executive Officer
Mr. Stephen H. Lockwood - President and Co-Chief Executive Officer
Mr. P. Stephen Clark - Chief Financial Officer
121A, 31 Southridge Drive
Okotoks, Alberta, Canada T1S 2N3
Tel: (403) 995-5200
Fax: (403) 995-5296
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