Mullen Group Ltd. of Okotoks, Alta. has entered into a letter of intent to acquire privately-owned Smook Bros. (Thompson) Ltd. The deal was announced around shortly after 8 a.m. April 7.
Smook is a heavy civil construction company that provides services such as infrastructure construction, mine site work and tailings ponds construction to the energy, natural resources and government sectors.
Mullen says Smook will work closely with its largest subsidiary, Winnipeg-based Kleysen Group L.P., to expand "their presence and service offerings in the Manitoba market."
Jeff Kleysen, president of Kleysen, said, "Northern Manitoba is a growing market and Thompson is the 'Hub of the North.' This region continues to see a great deal of investments into hydro-electricity projects, natural resources and infrastructure development. Kleysen and Smook service many of the same customers and I look forward to working closely with their team to provide enhanced services to our key customers. I have known Ted and Chris Smook for many years and know they operate a first-class company."
Murray Mullen, chairman and chief executive officer of the Mullen Group, said, "This acquisition is consistent with our strategy of investing in profitable and well managed businesses. Smook represents a new growth platform for our organization and expands upon our service offerings to the energy and natural resource sectors. We have an excellent team at Kleysen that understands the landscape and markets in Northern Manitoba and we will rely upon their management team to provide support to Smook and capitalize on new opportunities. This combination of sound market fundamentals and strong leadership make this an attractive investment for Mullen Group."
The transaction is subject to negotiation, execution and delivery of a purchase and sale agreement and the completion of due diligence, which has already begun and is expected to be completed in the next several weeks, Mullen Group said.
The Smook sale is scheduled to close April 30 and is expected to increase Mullen Group's consolidated revenues by approximately $40.0 million on an annualized basis.
Mullen Group, publicly traded on the Toronto Stock Exchange, owns a network of independently operated businesses. It is the largest provider of specialized transportation and related services to the oil and natural gas industry in western Canada and as one of the leading suppliers of trucking and logistics services in Canada.
Roland Mullen started the company in 1949 with one truck, a 1949 Chev Maple Leaf.
