Mullen Group Announces Acquisition to Expand its Trucking/Logistics Network

OKOTOKS, ALBERTA--(Marketwired - Nov. 24, 2014) - Mullen Group Ltd. (TSX:MTL) ("Mullen Group" and/or the "Corporation") announced today the signing of a definitive acquisition agreement to acquire the business, including land and buildings, of the Manitoba-based Gardewine Group Limited Partnership ("Gardewine"), one of the largest privately owned transportation carriers in Canada, in an all-cash transaction for total consideration of $172.0 million (the "Transaction"). Gardewine is comprised of the following businesses: Gardewine North, Northern Cartage, Northern Deck, Northern Bulk and Northern Logistics. The Transaction is expected to close in early 2015, subject to the satisfaction of all closing conditions customary for this type of transaction, including the receipt of certain third party regulatory and governmental approvals.

Gardewine, a well-established and reputable company founded in 1952, provides both regional less-than-truckload ("LTL"), truckload and specialized truckload services primarily in Manitoba and Ontario operating a fleet of approximately 660 trucks and 1,300 trailers through a network of 34 owned and leased terminals, employing over 1,500 employees and 140 contract owner operators.

"This is one of those acquisitions that simply does not come along very often. As I have often articulated we do not acquire companies just for growth. They must be strategic to our business and meet our investment criteria. This Transaction passed both of these tests and of course having the balance sheet and resources available to complete a transaction of this size is an essential component of any acquisition," said Mr. Murray K. Mullen, Chairman and Chief Executive Officer. "Trucking, and particularly the LTL segment of the transportation industry, has been and will continue to be an important element of the Canadian economy. Acquiring a brand name company like Gardewine will not only provide Mullen Group with a potential new growth opportunity, it will diversify our overall business, adding to our Trucking/Logistics segment during a time when the energy sector in western Canada is facing some cyclical headwinds. Diversification is truly one of the overall strengths of our organization," added Mr. Mullen.