Alberta-based Mullen Group and Kriska Holdings Limited have entered into a letter of intent to proportionate investments into the creation of Kriska Transportation Group Limited, which will be a new growth orientated transportation and logistics company based in Prescott, Ontario.
Mullen Group will be contributing its interest in Mill Creek Motor Freight in exchange for a 30 percent equity interest in Kriska Transportation. President and CEO Mark Seymour will be contributing his interest in Kriska Holdings to Kriska Transportation in exchange for a 70 percent equity interest in Kriska Transportation.
Seymour, a 30-year industry veteran of the Canadian trucking industry and the current chairman of the Canadian Trucking Alliance, will also be the president and CEO of Kriska Transportation.
In addition to Mullen Group having a board position in Kriska Transportation, the Corporation will be acquiring the real property used in the operations of Kriska Transportation and will be entering into long-term leases with Kriska Transportation.
The transaction is expected to close in the fourth quarter of 2014, subject to conditions typical for a transaction of this nature.
“We have been monitoring the trucking and logistics sector in Canada for a number of years. Over the past 12 to 18 months there has been significant consolidation in the trucking and logistics sector, particularly in eastern Canada. As such, we believe our timing is right to partner with Mark Seymour and his team in the creation of a new growth orientated company that provides alternatives to customers, employees, owner operators and a new platform for additional investments into well run trucking and logistics companies,” said Murray K. Mullen, chairman, CEO and president of Mullen Group.
Added Seymour: “Kriska Holdings has a long and proven record of acquiring trucking companies in Ontario, and I am thrilled to be welcoming the employees and owner operators of Mill Creek into the Kriska family.”