ALDERSYDE, AB, June 14 /CNW/ – Mullen Transportation Inc. (“Mullen” and/or “the Company”) announced today that it has closed its acquisition of Payne Transportation Inc. (“Payne”). Mullen was an initial investor in Payne holding a 45 percent interest. The consideration for Mullen’s acquisition of the balance of the 55 percent of Payne will be satisfied with $1.5 million of cash and 100,000 common shares of Mullen.
“Our original investment in Payne has far exceeded our expectations. Payne is an outstanding company that strengthens our position in both the long-haul van and flatdeck businesses. I am also extremely pleased that Mr. Tom Payne and the other senior management have agreed to remain with Payne to oversee its ongoing operations,” said Murray Mullen, Chairman and Co-Chief Executive Officer.
Payne is based in Winnipeg, Manitoba and operates a fleet of approximately 220 owner-operated power units and 400 trailers. Payne focuses on the transportation of truckload and less-than-truckload general freight across Canada and into the United States from its head office in Winnipeg and its terminals across Canada. Payne will operate as a wholly-owned subsidiary of Mullen.
“The acquisition of Payne comes at a time when we are seeing a strong demand for trucking services, particularly in western Canada. This acquisition capitalizes on the opportunities we see in trucking and is consistent with our current growth strategy of expanding our trucking segment. In the current economic climate we are optimistic that Payne will be able to sustain or even increase its annual revenues from its 2004 level of approximately $40.0 million and that operating margins approaching 10 percent can be achieved,” stated Stephen Lockwood, President and Co-Chief Executive Officer.
This press release may contain forward-looking statements that are subject to risk factors associated with the overall economy. The Company believes that the expectations reflected in this press release are reasonable, but results may be affected by a variety of variables. The Company relies on litigation protection for “forward-looking” statements.
Mullen Transportation Inc. is a publicly traded company listed on the Toronto Stock Exchange under the symbol “MTL”. Additional information on Mullen is available on our website at www.mullen-trans.com. The above is provided to shareholders and interested parties on an information only basis.
