Mullen Group Makes Offer for Livingston

Canadian transporter Mullen Group offered to buy Ontario-based logistics firm Livingston International Income Fund in an all-stock deal that tops a previous buyout offer from a consortium of other investors.

Under the Mullen proposal, Livingston investors would receive 0.566 share of Mullen for each Livingston trust unit held, Mullen said in a statement.

The proposal values Livingston at C$9 per trust unit, Mullen said.

Livingston previously had agreed to be acquired by the Canada Pension Plan Investment Board and Sterling Partners for C$8 per trust unit. The CPP Investment Board manages assets for the Canadian government’s public retirement plan. Sterling Partners is a Chicago-based investment firm.

Mullen Group, Okotoks, Alberta, made its offer to Livingston on Oct. 21 but did not announce the deal until Nov. 5. Livingston announced the proposed deal with the CPP Investment Board and Sterling on Oct. 8.

If Livingston trustees agree to Mullen’s proposal, two-thirds of the company’s shareholders and Canadian regulatory authorities still would have to approve the deal before it goes through, Mullen said.

“The business of Livingston is an ideal fit with our trucking/logistics segment, and its addition will provide significant opportunities to realize on both cost and service synergies,” said Murray Mullen, Mullen’s chief executive officer.

Mullen Group now runs 387 tractors. The company specializes in heavy-haul services.