Mullen Group Closes Acquisition of Canadian Hydrovac
The oilfield trucking provider Mullen Group has announced the closing of the acquisition of hydro excavation company Canadian Hydrovac (CHL).
CHL is a private company owned by Dan Shemanchuk which is based in Sherwood Park, Alberta. CHL is an industry leader in providing hydrovac services to the midstream, pipeline, construction and municipal sectors of western Canada.
In addition to operating from its head office in the refinery complex of the greater Edmonton region and Alberta's Industrial Heartland, CHL has additional operating branches in the Lower Mainland of British Columbia and Saskatchewan.
The Company's workforce consists of approximately 80 skilled employees and its fleet consists of over 50 specialized pieces of equipment including: hydrovac units, vacuum units and various other pieces of support equipment.
"This acquisition is an excellent example of how our organization approaches acquisitions. Not only do we acquire an industry leader in a growth market, we now have a real opportunity to generate margin improvement from the synergies associated with combining the assets with our existing hydrovac and specialized combo units business in western Canada, including those that we will acquire with the recently announced AECOM purchase," said Murray K. Mullen, Chairman and Chief Executive Officer.
He added: "I am very pleased that Dan Shemanchuk will continue to lead CHL. He has built a company based upon quality, customer service and safety by investing in first class operating equipment with a team of skilled and dedicated employees. Now with our balance sheet and strong market presence here in western Canada I feel confident that the CHL team under Dan's leadership will capitalize on many future opportunities."
Mullen Group will operate CHL as a standalone Business Unit within our Oilfield Services segment and this acquisition is expected to add approximately $25.0 million in annual revenue to Mullen Group with margins consistent with our Specialized Services Business Units within the Oilfield Services segment.
Mullen Group will fund this transaction through cash and the issuance of Mullen Group shares. With the recently announced acquisition of AECOM's Canadian Industrial Service Division, combined with our Recon Utility Search L.P. and Cascade Energy Services L.P. Business Units, Mullen Group will have one of the largest fleets of hydrovacs in western Canada.
