CALGARY, Alta. — The Mullen Group Income Fund has signed a letter of intent to acquire Pro North Oilfield Services and Pro North Well Management in a cash transaction.
The private companies are based in Fort Nelson, B.C. Pro North is a provider of oilfield related fluid hauling services; and operates a fleet of approximately 20 tank truck/trailer combinations and employs approximately 25 people.
“We are pleased to add Pro North’s fluid transportation capabilities to our growing fluid business, stated Stephen H. Lockwood, president and co-CEO of Mullen. It is a strong and well run company that we expect will work closely with our Formula Powell group. Pro North has been in business for almost 17 years and has built an exceptional reputation for providing outstanding service to their customers in the Fort Nelson area.”
Marshall Ellis, the key operational principal of Pro North has agreed to remain with Pro North to oversee its day-to-day operations.
Pro North will be added to Mullen’s oilfield services segment and will be operated as an independent business unit in the Formula Powell group.
“In the years to come we are optimistic that Pro North will be able to grow its business and expand on their prior year’s revenue of approximately $10 million and to continue to produce respectable operating margins in a range consistent with similar business units in the Mullen organization, said Lockwood.
The transaction is expected to close by the middle of October, subject to completion of due diligence and other conditions normal for a transaction of this nature.
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