OKOTOKS, Alberta, Sept. 05, 2017 (GLOBE NEWSWIRE) -- (TSX:MTL) Mullen Group Ltd. ("Mullen Group", "We", "Our" and/or the "Corporation") is pleased to announced that effective September 1, 2017, it closed the acquisition of RDK Transportation Co. Inc. ("RDK"), a privately owned transportation company based in Saskatoon, Saskatchewan (the "Transaction"). Concurrent to the closing of the Transaction, Mullen Group entered into an agreement to acquire the facility which RDK operates from in Saskatoon.
RDK operates an asset light owner operator business model and services the agricultural, construction and industrial sectors by providing truckload deck services throughout Canada and the continental United States. Their fleet consists of 80 power units and 107 trailers including step decks, double drops, removal goose necks ("RGN") and specialized bulk trailers based in Saskatoon, Saskatchewan. RDK employs 25 personnel and 68 leased operators.
This acquisition builds on Mullen Group's strategy of making investments in the Trucking/Logistics segment that contribute to the consolidation of the flat deck and RGN space, builds on the Corporation's asset light business model and benefits from our strategy of building out Mullen Group's network of new terminals situated in geographically strategic regions.
"I am delighted to have RDK join the Mullen Group of companies. RDK is a first class trucking company that will fit very well within our corporate culture and extend our deck services into Saskatchewan. We will operate RDK as a stand-alone Business Unit and I am pleased to advise that Rod Friesen, one of RDK's former owners, has agreed to stay on with RDK and serve as its Business Unit leader. We expect that RDK will immediately benefit by leveraging our Trucking/Logistics network to provide more delivery options to their customers. As well, RDK will have access to our systems and critical mass buying power that will help RDK better manage their cost structure. Furthermore, RDK will benefit from our technology platform, MoveItOnline," said Mr. Murray K. Mullen, Chairman, Chief Executive Officer and President.
Mullen Group expects the Transaction will contribute in excess of $20.0 million of annualized revenue and will be immediately accretive. RDK generates margins that are in line with Mullen Group's non-asset based Business Units in the Trucking/Logistics segment and management believes that once synergies are realized, margins will improve. RDK will be operated as an independent, self-managed Business Unit within Mullen Group's Trucking/Logistics segment.
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
Source: Mullen Group Ltd