OKOTOKS, Alta., PRESCOTT, Ont.– Mullen Group Ltd. and Kriska Holdings Limited are pleased to announce that they have entered into a letter of intent (“LOI”) in which Mullen Group and Kriska Holdings have agreed to create Kriska Transportation Group Limited (“Kriska Transportation”) which will be a new growth orientated transportation and logistics company based in Prescott, Ontario.
Mullen Group will be contributing its interest in Mill Creek Motor Freight L.P. (“Mill Creek”) in exchange for a 30 percent equity interest in Kriska Transportation. Mark Seymour will be contributing his interest in Kriska Holdings to Kriska Transportation in exchange for a 70 percent equity interest in Kriska Transportation.
Mark Seymour, a 30-year industry veteran of the Canadian trucking industry and the current Chairman of the Canadian Trucking Alliance, will be the President and Chief Executive Officer of Kriska Transportation. In addition to Mullen Group having a board position in Kriska Transportation, the Corporation will be acquiring the real property used in the operations of Kriska Transportation and will be entering into long-term leases with Kriska Transportation. The transaction is expected to close in the fourth quarter of 2014, subject to conditions typical for a transaction of this nature, the companies said in a release late Thursday afternoon.
“We have been monitoring the trucking and logistics sector in Canada for a number of years. Over the past 12 to 18 months there has been significant consolidation in the trucking and logistics sector, particularly in eastern Canada. As such we believe our timing is right to partner with Mark Seymour and his team in the creation of a new growth orientated company that provides alternatives to customers, employees, owner operators and a new platform for additional investments into well run trucking and logistics companies. Mark Seymour’s extensive experience in the trucking industry and vast network of personal contacts makes him the ideal person to run this new company. Moreover, we believe that aligning with Kriska Transportation provides Mullen Group shareholders with the best opportunity to participate in the industry consolidation that we expect to occur in the Ontario trucking sector. I look forward to working with Mark at the board level as we position Kriska Transportation for the future”, said Murray K. Mullen, Chairman, chief executive officer and President of Mullen Group.
“Kriska Holdings has a long and proven record of acquiring trucking companies in Ontario, and I am thrilled to be welcoming the employees and owner operators of Mill Creek into the Kriska family,” noted Seymour, president and chief executive officer of Kriska Holdings.
“In addition, I am pleased to have the Mullen Group as a shareholder of Kriska Transportation. The Mullen Group’s focus on safety, operational discipline, and well-being of their employees is congruent with how we operate at Kriska Holdings, and working together I’m confident we will raise the bar for our employees, customers, and shareholders. The impact of the driver shortage has become a major issue to shippers and carriers alike; this transaction allows us to go to market with the asset-based capacity our customer’s value, and will provide a strong, stable platform for future acquisitions.”
Kriska Transportation will be one of the largest growth orientated Ontario based transportation and logistics companies. Both Mill Creek and Kriska Holdings will continue to operate as wholly owned subsidiaries of Kriska Transportation.
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