CALGARY, Alta. — Mullen Group Income Fund and Producers Oilfield Services Inc.are merging.
It is anticipated that the transaction will occur by way of a Plan of Arrangement and will result in each Producers share being converted into 0.4444 Mullen Trust Units or Mullen LP Units. Also, as part of the transaction, the assets of Mullen and Producers associated with the Far North will be transferred into a separate public company, the details of which have yet to be finalized, the companies stated in a release Tuesday night.
“This is a wonderful opportunity to bring together two strong, well managed western Canadian businesses. It is rare that you can bring together two companies and two management teams of this quality,” said Stephen H. Lockwood, President and Co-CEO of Mullen. He added he expects that on a combined basis that revenues will exceed $1.0 billion generating EBITDA of approximately $250 million.
The transaction is subject to regulatory approval and unitholder approval by at least 66 2/3 percent of each of Producers shareholders and Mullen unitholders. It is expected that the shareholder and unitholder meetings related to such approvals will be held in May 2006.
The new public company holding the Far North assets will be led by Ric Peterson. Mullen’s Board of Directors will consist of eight members and will be comprised of the current six directors of Mullen with the addition of Ric Peterson and Pat Powell.
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