Mullen Group (TSX:MTL) announced that it is acquiring B&R Eckel’s Transportation, a transportation and logistics company that provides less-than-truckload, full truckload and general oilfield hauling to the northeastern Alberta region (NEAB).
The value of the transaction, which is scheduled to close on Monday, was not disclosed.
Mullen Group (TSX:MTL) said that with 420 employees at 16 facilities, B&R operates a fleet of 400 power units and more than 950 trailers, which generate annual reveue of C$85 million.
The company’s senior operating officer Richard J Maloney said the acquisition was an example of Mullen Group’s precision-based acquisition strategy and the timing of the purchase was good.
“First off, we have seen commodity prices increase and hold in a range that has attracted capital to NEAB, including applications by big energy players looking to extend their production in the Cold Lake region along with newly sanctioned projects – all of which require transportation and logistics services,” Maloney said.
“Secondly, B&R's diverse service offerings compliment Mullen Group's operating segments, very well.”
Mullen Group’s shares moved higher following the announcement, up 1.9% at C$15.30 shortly after noon on Monday.
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