Mullen Group Ltd. Announces Acquisition of Aecom's Canadian Industrial Services Division

Source Press Release
Company Mullen Group Ltd.Aecom 
Tags Asset Deals, Deals, Oil Services
Date June 11, 2018

Mullen Group Ltd. ("Mullen Group", "We", "Our" and/or the "Corporation") is pleased to announce that it has entered into an agreement with  AECOM (NYSE:ACM) to acquire the business and assets of  AECOM's Canadian Industrial Services Division ("AECOM ISD"), which operates largely within the heavy oil and oil sands regions of Alberta. AECOM ISD employs over 350 people and operates in excess of 250 pieces of specialized equipment including: pressure trucks, hydrovacs, vacuum trucks, combo units, flushby units, fluid hauling equipment and various other pieces of support equipment.  AECOM ISD service offerings are complementary to Mullen Group's Oilfield Services segment and it is Mullen Group's intention to consolidate and operate  AECOM ISD through our Cascade Energy Services L.P., E-Can Oilfield Services L.P. and Heavy Crude Hauling L.P. Business Units. This acquisition is expected to add approximately $70.0 million in annual revenue to Mullen Group.

"This opportunity is a perfect synergistic fit in our organization given that the business and assets of AECOM ISD virtually overlap three of our Business Units in the Production Services division of our Oilfield Services segment. The fact that the services sector of the oil and natural gas industry in western Canada remains very competitive reinforces our belief that only those companies with the right cost structure and strong balance sheet will survive today's challenging market conditions and be positioned to capitalize on future opportunities when growth returns to the oil and natural gas industry. With this acquisition not only do we grow and strengthen three of our Business Units, we add a quality work force, which is a real challenge for oilfield service companies in today's environment of low unemployment and tight labour markets," commented Mr. Murray K. Mullen, Chairman and Chief Executive Officer.

The transaction is expected to close on June 25, 2018, subject to closing conditions customary for a transaction of this nature. Mullen Group will fund this transaction through cash. Both Mullen Group and AECOM will be working collaboratively to ensure a successful and seamless transition process for all customers.

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