OKOTOKS, Alberta, June 11, 2018 (GLOBE NEWSWIRE) -- 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 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 President
Mr. P. Stephen Clark - Chief Financial Officer
Mr. Richard J. Maloney - Senior Vice President
121A - 31 Southridge Drive
Okotoks, Alberta, Canada T1S 2N3
Telephone: 403-995-5200
Fax: 403-995-5296
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