CALGARY, July 21 /PRNewswire-FirstCall/ -- (TSX - MTL.UN) The Mullen Group Income Fund ("Mullen" or "Fund") announced today the signing of an agreement to acquire Canadian Dewatering Limited ("Canadian Dewatering"), a private corporation based in the Province of British Columbia in an all cash transaction. Canadian Dewatering is a recognized leader in British Columbia in the provision of contract dewatering services and the rental and sale of pumps and support equipment.
Canadian Dewatering's operations are focused primarily in British Columbia but it has recently expanded its service area to include Alberta and the Northwest Territories.
"We are pleased to add Canadian Dewatering to our growing organization. Having been in business for over 30 years they have built an exceptional reputation for providing outstanding service to their customers. The acquisition of Canadian Dewatering will fit very nicely with our existing dewatering business of Northern Underwater Systems whose business is primarily focused in Alberta and Saskatchewan. We look forward to working with the management team on enhancing Canadian Dewatering's service offerings and realizing on the potential synergies resulting from this acquisition," said Stephen Lockwood, President and Co-CEO.
This investment is expected to add over $15 million to Mullen's consolidated revenues and generate operating margins in the 30% range.
The transaction is expected to close on July 31, 2006, subject to the completion of due diligence and other conditions normal for a transaction of this nature.
Mullen is an open-ended income fund 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 the Fund has strong business relationships and industry leadership. Administration of the Fund is delegated to Mullen Group Inc. which, in addition to managing the Fund, provides management and financial expertise, technology and systems support to its independent businesses.
This press release may contain forward-looking statements that are subject to risk factors associated with the oil and gas business and the overall economy. The Fund believes that the expectations reflected in this press release are reasonable, but results may be affected by a variety of variables. The Fund relies on litigation protection for "forward-looking" statements.
Mullen is a publicly traded income trust listed on the Toronto Stock Exchange under the symbol "MTL.UN". Additional information is available on our website at http://www.mullen-group.com/.
