Canadian truckload carrier Mullen Transportation has finalized its acquisition of Winnipeg, Manitoba-based Payne Transportation. Payne, which operates a fleet of approximately 220 owner-operated power units and 400 trailers, offers both truckload and LTL general freight service across Canada and into the U.S. It will operate as a wholly owned subsidiary of Mullen.
Mullen was an initial investor in Payne, holding a 45% interest, and the acquisition of the remaining 55% share is costing $1.5 million in cash and 100,000 common shares of Mullen’s stock.
“The acquisition of Payne comes at a time when we are seeing a strong demand for trucking services, particularly in western Canada,” said Murray Mullen, chairman & co-CEO of Mullen.
“This acquisition capitalizes on the opportunities we see in trucking and is consistent with our current growth strategy of expanding our trucking segment,” he added. “In the current economic climate we are optimistic that Payne will be able to sustain or even increase its annual revenues from its 2004 level of approximately $40 million and that operating margins of 10% can be achieved.”