OKOTOKS, Alta. — Mullen Group has announced a series of transactions that will expand its fluid-hauling and handling capacity in northern Alberta and northeastern B.C.
In November, the company closed an acquisition of Radium Industrial Solutions GP, a Grande Prairie-based fluid hauler. That business will be operated as part of Mullen’s Cascade Energy Services business.
Mullen has also agreed to terms that will see it acquire Panda Tank and Vac Truck Services, also out of Grande Prairie, Alta. That deal is slated to close Jan. 1 and Panda will be operated as a standalone business unit, increasing Mullen’s presence in and around Grande Prairie, Fort St. John and Dawson Creek while expanding the company’s reach into the Grande Cache area, the company announced.
Mullen has also inked a letter of intent to take over the fluid hauling assets of an undisclosed private company based in northern Alberta. That deal is expected to close in early January, with assets integrated into Mullen’s existing fluid hauling businesses, the company announced.
“Acquiring businesses leveraged to fluid hauling and the production services segment of the oil and gas industry has been a strategic focus of the Mullen Group for several years,” said chairman and CEO Murray Mullen. “New drilling techniques and multi-stage fracturing are creating new opportunities associated with the development of resource plays throughout North America. These acquisitions provide Mullen Group with additional equipment and an experienced workforce.”
“The addition of these three businesses to our fluid hauling operations not only expands the geographic coverage we can provide to our customers, it provides us with an opportunity to leverage our existing infrastructure to achieve economies of scale,” added president and co-CEO Steve Lockwood. “We anticipate that these three acquisitions, once completed, will increase Mullen Group’s annual consolidated revenues by approximately $42 million. In terms of operating profitability we expect these businesses will generate operating income (EBITDA) margins similar to Mullen Group’s current margins within the first six months of the acquisition.”
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