Mullen Group Ltd. Announces the Acquisition of B. & R. Eckel's Transport Ltd.

OKOTOKS, AB, May 1, 2023 /PRNewswire/ - (TSX: MTL)  Mullen Group Ltd. ("Mullen Group", "We", "Our" and/or the "Corporation") is pleased to announce that it has entered into a formal share purchase agreement to acquire B. & R. Eckel's Transport Ltd. ("B&R").  The acquisition is scheduled to close today.

B&R was established in 1965 in Bonnyville, Alberta, and has a long history of servicing customers in the greater Northeastern Alberta ("NEAB") region.  B&R provides three (3) primary service offerings to a diverse group of customers in NEAB: less-than-truckload ("LTL"), full truckload and general oilfield hauling.

"When the Ringuette family approached us about a possible acquisition I knew this was a meeting I had to take.  B&R has been a key player in the LTL and energy services space for many years in Northeastern Alberta.  After a few meetings, it became clear that B&R was the right fit for Mullen Group and we were able to negotiate terms that worked for us and the Ringuette family, including having the family stay on following closing for a period of time to ensure a smooth transition," said Mr. Murray K Mullen, Chair and Senior Executive Officer.

With a dedicated group of 420 employees working within a network of 16 facilities, B&R operates a fleet of 400 power units and over 950 trailers that generate annualized revenue of $85.0 million.  It is expected that B&R will eventually generate financial results that are in line with Mullen Group's overall operating margins.

"The acquisition of B&R is a great example of Mullen Group's precision-based acquisition strategy and we think our timing is good. First off, we have seen commodity prices increase and hold in a range that has attracted capital to NEAB, including applications by big energy players looking to extend their production in the Cold Lake region along with newly sanctioned projects – all of which require transportation and logistics services. Secondly, B&R's diverse service offerings compliment Mullen Group's operating segments, very well.  Very importantly, B&R's commitment to their people and the communities they work in, align with Mullen Group's values.  We are looking forward to working with the B&R people to continue to provide their customers with great service," said Mr. Richard J. Maloney, Senior Operating Officer.

The operating results of B&R will be split between our LTL segment and our Specialized and Industrial Services segment.  Mullen Group will be funding the transaction from existing cash and credit lines.

Mullen Group is one of Canada's largest logistics providers.  Our network of independently operated businesses provide a wide range of service offerings including less-than-truckload, truckload, warehousing, logistics, transload, oversized, third-party logistics and specialized hauling transportation.  In addition, we provide a diverse set of specialized services related to the energy, mining, forestry and construction industries in western Canada, including water management, fluid hauling and environmental reclamation.  The corporate office provides the capital and financial expertise, legal support, technology and systems support, shared services and strategic planning to its independent businesses.

Mullen Group is a publicly traded corporation listed on the Toronto Stock Exchange under the symbol "MTL".  Additional information is available on our website at www.mullen-group.com or on the Corporation's issuer profile on SEDAR at www.sedar.com.

Mr. Murray K. Mullen - Chair, Senior Executive Officer and President 
Mr. Richard J. Maloney - Senior Operating Officer 
Mr. Carson P. Urlacher - Senior Accounting Officer 
Ms. Joanna K. Scott - Senior Corporate Officer

121A - 31 Southridge Drive 
Okotoks, Alberta, Canada  T1S 2N3 
Telephone:  403-995-5200 
Fax:  403-995-5296

This news release may contain forward-looking statements that are subject to risk factors associated with the oil and natural gas business and the overall economy.  Mullen Group believes that the expectations reflected in this news release are reasonable, but results may be affected by a variety of variables. In particular, forward-looking statements include but are not limited to the following: (i) our expectation that B&R will eventually generate financial results that are in line with Mullen Group's overall operating margins. These forward-looking statements are based on certain assumptions and analyses made by Mullen Group in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. These assumptions include but are not limited to the following: (i) our view that the acquisition of B&R is a great example of Mullen Group's precision-based acquisition strategy and we think our timing is good; and (ii) our view that B&R's service offerings compliment Mullen Group's operating segments, very well. The forward-looking information contained herein is made as of the date of this news release and Mullen Group disclaims any intent or obligation to update publicly any such forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable Canadian securities laws.  Mullen Group relies on litigation protection for "forward-looking" statements.

SOURCE Mullen Group Ltd.