CALGARY, Alta. — The Mullen Group Income Fund has signed an agreement to acquire a B.C.-based dewatering service to expand its oilfield services segment.
Canadian Dewatering has provided contract dewatering services and the rental and sale of pumps and support equipment for a number of decades. The private corporation operations are focused primarily in B.C., 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,” stated Stephen Lockwood, president and co-CEO. “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.”
The cash transaction is expected to close on July 31, subject to the completion of due diligence and other conditions normal for a transaction of this nature.
The acquisition is expected to add more than $15 million to Mullen’s consolidated revenues and generate operating margins in the 30% range.
Mullen is an open-ended income fund that owns a network of independently operated businesses. 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.
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