ALBERTA NEWS
Mullen Group Ltd. enhances production services
As of September 1, 2011, Mullen Group Ltd. officially closed its acquisition of Polaris Petroleum Ltd., a privately owned company located in Drayton Valley, Alberta. Polaris provides drilling and production fluid services to oil and gas companies operating in the Cardium resource play.
This acquisition is expected to increase Mullen Group's consolidated revenues by approximately $22.0 million on an annualized basis and generate operating margins consistent with Mullen Group's other production services businesses. Polaris will be operated as a stand-alone business unit and will expand Mullen Group's market presence into Drayton Valley.
"Acquiring businesses leveraged to fluid hauling and the production services segment of the oil and gas industry has been and continues to be a strategic focus of the Mullen Group, stated Stephen Lockwood, President and co-CEO. "The addition of Polaris to our production services operations expands our geographic coverage into the heart of the Cardium play, an area in which our oil and gas customers continue to invest. We are also pleased that the owners of Polaris, Monte and Cindy Waronek, have agreed to stay on and run the day-to-day operations of Polaris."
Entrec buys pair of carriers
Entrec Transportation Services Ltd. has signed deals to acquire Trak Equipment Haulers and Jay Reid Trucking Ltd., two Alberta-based trucking companies. The price tag of the two deals is about $4.8 million. The two acquisitions will add about $6 million in annual revenues to Entrec's top line.
Edmonton-based Trak provides services to the energy and construction industries in Alberta, BC and Saskatchewan. It will be acquired for about $3.3 million in cash and shares. The deal is slated to close November 1.
"Serving the heavy haul transportation industry for over 25 years, this business will complement the strong presence we are developing in Western Canada," said Rod Marlin, Entrec's Chairman and CEO. "We are experiencing a high demand for our services and this acquisition will help provide the additional equipment and manpower resources we need to meet this demand."
The acquisition of Bonnyville-based Jay Reid will cost just under $1.5 million and closed on October 24.
Entrec specializes in the transportation and rigging of overweight and oversized cargo for the oil and gas, construction, petrochemical, mining and power generation industries.
(Source: The Canadian Press)
