Mullen Group Ltd. Announces the Closing of Two Acquisitions
OKOTOKS, AB, June 24, 2021 /CNW/ - (TSX: MTL) Mullen Group Ltd. ("Mullen Group", "We", "Our" and/or the "Corporation") is pleased to announce the closing of the previously announced acquisition of APPS Transport Group Inc. ("APPS") and the businesses: APPS Cartage Inc. and APPS Cargo Terminals Inc. following the successful receipt of all regulatory approvals. Also in June, Mullen Group closed the acquisition of Mississauga, Ontario, based Tri Point Intermodal Services Inc. ("Tri Point").
APPS (www.appsexpress.com), a well-established transportation and logistics company founded in 1985, provides less-than-truckload ("LTL") along with truckload, intermodal and some warehousing services primarily from their head office in Mississauga, Ontario, with services extending into five locations throughout western Canada. Through a combination of company trucks, independent owner operators, and interline partners, APPS and its dedicated group of 300 plus employees, service the commercial supply; food & beverage; and retail & consumer sectors which supports the business-to-business (B2B) along with the business-to-consumer (B2C) E-Commerce space.
APPS will operate within Mullen Group's Less-Than-Truckload segment ("LTL segment") and it is expected to generate annualized revenue of approximately $90.0 million and operating income before depreciation and amortization ("OIBDA") margins consistent with the LTL segment.
"Today's announcement is another very important milestone for our organization. We have been very clear with our shareholders as it relates to our strategy of building one of Canada's most comprehensive transportation and logistics networks. After a long process of engagement with the regulatory authorities, I am delighted that we have closed the acquisition of APPS, one of Canada's largest independently owned and operated transport companies. APPS will be an excellent fit in our organization expanding the service offering to shippers and consumers throughout and across Canada. But the real opportunity for Mullen Group shareholders is the synergies that can be achieved across our entire network. Collaboration is the key to finding the synergies and with Rob McDonald, founder of APPS, at the helm of APPS, I have no doubt these will be realized upon. Rob will continue to lead an experienced senior management team and quality workforce, driving growth and innovation. Exciting times!" commented Mr. Murray K. Mullen, Chairman and Chief Executive Officer.
Tri Point (http://tripointintermodal.com/), established in 2005, provides container drayage service within the Greater Toronto Area (GTA) and southern Ontario through a combination of company trucks, owner operators and a fleet of approximately 190 chassis trailers. In addition, Tri Point provides container storage in the Vaughan, Ontario region.
Tri Point will operate within Mullen Group's Logistics & Warehousing segment ("L&W segment") and is expected to generate annualized revenue of approximately $10.0 million and OIBDA margins consistent with the L&W segment.
"Concurrent with the announcement of the closing of APPS, we are pleased to announce that we successfully closed the acquisition of Tri Point in June as well. Tri Point is an intermodal service provider transporting containers between the rail terminals and customers in southern Ontario. Intermodal is, and will continue to be, an important part of transporting consumer goods within Canada. Never has this been more relevant than today with the supply chain under stress from increased demand and bottlenecks. Rail can provide the long-haul part of the supply chain but a local carrier is a critical part of servicing the first and final mile to the customer. Tri Point will continue to be operated as a stand-alone business within our organization and will be led by the founder Michael Lamanna. Michael has built an excellent company with a history of providing quality service.
"Two acquisitions, both what I refer to as great companies, that will add annual revenues of over $100.0 million to the Mullen Group. We are expanding our service coverage just as the economy is poised to recover from the mandated business closures related to the COVID-19 health crisis. But we cannot provide service without a dedicated and engaged workforce, which is an important part of the acquisition of both APPS and Tri Point. Welcome all to our growing network!" commented Mr. Mullen.
About Mullen Group Ltd.
Mullen Group is a logistics company that owns a network of independently operated businesses. The Corporation is recognized as one of the leading suppliers of trucking and logistics services in Canada providing a wide range of service offerings including less-than-truckload, truckload, warehousing, logistics, transload, oversized 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 SEDAR at www.sedar.com.
Contact Information
Mr. Murray K. Mullen - Chairman of the Board, Chief Executive Officer and President
Mr. P. Stephen Clark - Chief Financial Officer
Mr. Richard J. Maloney - Senior Vice President
Ms. Joanna K. Scott - Corporate Secretary & Vice President, Corporate Services
121A - 31 Southridge Drive
Okotoks, Alberta, Canada T1S 2N3
Telephone: 403-995-5200
Fax: 403-995-5296
Disclaimer
This news release contains forward-looking information within the meaning of applicable securities legislation relating to the acquisition of APPS and Tri Point. Forward-looking information in this news release is identified by the words "will", "anticipates" and "expects" and includes suggestions of future outcomes, including about the future expansion of our business in eastern Canada; synergies that may be achieved across our network; annualized revenue and operating income before depreciation and amortization that may be realized by us from the acquisition of APPS and Tri Point; and the importance of intermodal services within Canada.
Developing forward-looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to Mullen Group and others that apply to the industry generally. The risks and uncertainties that could cause our actual results to differ materially from the forward looking information contained in this news release include, but are not limited to: risks associated with the trucking/logistics business; risks applicable to the overall economy; business and consumer trends and demand for goods and services; our ability to integrate and realize synergies from APPS and Tri Point; and risks relating to current and future adverse impacts of the novel coronavirus pandemic. Additional risks and uncertainties applicable to our business may be obtained in our annual management discussion and analysis for the fiscal year ended December 31, 2020 and our annual information form for the year ended December 31, 2020, both of which are filed on our profile at www.sedar.com.
The forward-looking information is based on certain assumptions made by us in light of our experience and perception of current and historical conditions. Although Mullen Group believes that the forward-looking information contained in this news release is reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information as actual results may differ materially from those expressed or implied.
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 securities laws.
SOURCE Mullen Group Ltd.
