Mullen Transportation has acquired the OK Drilling group of companies and the Anderson group – two service providers to the oil and gas industry in Western Canada.
That brings the total number of acquisitions for Mullen to seven in 2002, all of them aimed at the oil and gas industry.
“The decline in drilling activity in 2002, accompanied by the competitive marketplace and relentless pressure to reduce costs is forcing many private companies to consider selling their business,” says Murray Mullen, chairman and president of Mullen Transportation. “This trend is providing our company with the opportunity to acquire good companies and to strengthen our market share through consolidation.”
OK Drilling and Anderson are both competitors to the Mullen-owned subsidiary McGinnis Rat Hold Drilling.
“By combining these companies into one single entity we can realize significant cost savings and provide our customers with a service coverage that is unmatched,” says Mullen, noting the fleet now has 25 truck-mounted auger and dual rotary drill units.
The two acquisitions carried about a $15 million price tag, with the transactions completed by way of a share purchase agreement.
“I am very pleased to announce the acquisition of OK and Anderson, both of which were very well-managed and were good competitors,” says Mullen. “More importantly, I believe that we have added significantly to our management depth and operational capacity.”
Dave Roberts Jr., owner of OK and Simon Wolford, owner of Anderson, have agreed to join Mullen in senior management roles.
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