ALDERSYDE, Alta. – Mullen Transportation Inc., based in Aldersyde, Alta. has closed its acquisition of Payne Transportation Inc.
Mullen was an initial investor in Payne, based in Winnipeg, Man., holding a 45 per cent interest. The consideration for Mullen’s acquisition of the balance of the 55 perc ent of Payne will be satisfied with $1.5 million of cash and 100,000 common shares of Mullen, said company officials.
“Our original investment in Payne has far exceeded our expectations. Payne is an outstanding company that strengthens our position in both the long-haul van and flatdeck businesses. I am also extremely pleased that Mr. Tom Payne and the other senior management have agreed to remain with Payne to oversee its ongoing operations,” said Murray Mullen, chairman and co-chief executive officer.
Payne operates a fleet of approximately 220 owner/operated power units and 400 trailers. Payne focuses on the transportation of truckload and less-than-truckload general freight across Canada and into the U.S. from its head office in Winnipeg and its terminals across Canada. Payne will operate as a wholly owned subsidiary of Mullen.
“The acquisition of Payne comes at a time when we are seeing a strong demand for trucking services, particularly in western Canada. This acquisition capitalizes on the opportunities we see in trucking and is consistent with our current growth strategy of expanding our trucking segment. In the current economic climate we are optimistic that Payne will be able to sustain or even increase its annual revenues from its 2004 level of approximately $40 million and that operating margins approaching 10 per cent can be achieved,” said Stephen Lockwood, president and co-CEO. For more information on Mullen visit www.mullen-trans.com.
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