SERVICE SECTOR / Mullen Transportation Inc. Purchases Remaining 60% of Mill Creek
ALDERSYDE, Dec. 29 /CNW/ - Mullen Transportation Inc. (MTI) announced
today that it has executed an agreement for the purchase of the balance of the
issued and outstanding shares in Mill Creek Inc. (Mill Creek) from the
original shareholders of Mill Creek, for cash and Retractable Convertible
Preferred Shares (Preferred Shares) in MTI. The Toronto Stock Exchange
(Exchange) has conditionally approved the listing of the common shares of MTI
issuable upon the conversion of the Preferred Shares, subject to MTI complying
with the ordinary listing requirements of the Exchange. The transaction is
scheduled to close and will be effective January 1, 1999, resulting in MTI
owning 100% of Mill Creek.
MTI originally acquired a 40% interest in Mill Creek on July 30, 1998.
Since that date Mill Creek and MTI have jointly marketed their trucking and
logistic services throughout North America and worked closely to benchmark
best business practices in all areas of the business.
''Our original investment in Mill Creek has exceeded our expectations'',
said Murray Mullen, President and C.E.O of MTI. ''Mill Creek is an
outstanding company which I expect will serve as another growth platform for
MTI. The economies of eastern Canada and the United States continue to show
signs of strength and Mill Creek will enhance MTI's opportunities to
participate in these growth markets.''
Mill Creek, based in Cambridge, Ontario, is one of Canada's leading
trucking companies operating approximately 250 Company owned trucks and 550
air ride logistic van type trailers, generating annual revenues in excess of
$60 million. Mill Creek, through its subsidiary companies, specializes in the
transportation of less-than-truckload (LTL) and truckload general freight to
all major centres in the United States, Canada and to Mexico via inter-line
arrangements, utilizing state-of-the-art computer and satellite technology.
Mill Creek is the recipient of several industry and customer service awards
including the prestigious 1995 Gold Award of Excellence from the Ontario
Ministry of Transportation. Mill Creek will operate as a wholly-owned
subsidiary of MTI under the leadership and guidance of Mr. David Hopps, one of
the original shareholders of Mill Creek. Mr. Phil Henning, the founder of
Mill Creek, has chosen to pursue other interests outside of trucking but will
remain as an advisor to Mill Creek.
Mullen Transportation Inc. is a broad-based transportation holding
company that provides management and financial expertise, technology and
systems support to its subsidiaries. The Company manages a network of carrier
companies and is recognized as one of the largest providers of trucking and
logistics services in Canada now operating a fleet of over 1,000 trucks and
2,000 trailers, many of which are highly specialized. Through its subsidiary
companies, MTI has operations that cover North America offering a wide range
of specialized transportation services. MTI's business is structured into
four divisions - Truckload, Oilfield Services, Specialized Services, and
Regional L.T.L. - that are differentiated by the type of commodities
transported, the kind of equipment utilized, and customer service
requirements. The Company is also the single largest transporter of oilfield
drilling equipment in Canada.
Mullen Transportation Inc. is a publicly traded company listed on the
Toronto Stock Exchange under the symbol ''MTL''.
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