OKOTOKS, AB - Mullen (NASDAQ:MULN) Group Ltd. (TSX:MTL), a major Canadian logistics provider, announced today its intent to acquire ContainerWorld Forwarding Services Inc., a logistics firm specializing in the alcoholic beverage and hospitality sectors. The acquisition is anticipated to be finalized in the second quarter of 2024, pending regulatory approval and customary closing conditions.
ContainerWorld, headquartered in Richmond, British Columbia, offers a suite of supply chain solutions including inventory management, freight forwarding, warehousing, and distribution services. It operates a network of customs and sufferance bonded warehouses in British Columbia and Ontario.
Murray K. Mullen, Chair and Senior Executive Officer of Mullen Group, emphasized the strategic nature of the acquisition, stating that it aligns with the company's diversification strategy and capitalizes on the growth potential within Canada's alcoholic beverage industry. ContainerWorld is recognized as a significant logistics provider to domestic and international producers of wine, beer, and spirits.
Dennis Chrismas, the founder of ContainerWorld, will continue to lead the company post-acquisition. The acquisition is expected to contribute approximately $150M in annualized revenue to Mullen Group and maintain operating income before depreciation and amortization (OIBDA) margins in line with Mullen's Logistics & Warehousing segment. The transaction will be financed through Mullen Group's existing credit facilities.
Mullen Group operates a network of independent businesses offering a variety of services, including transportation and specialized services related to various industries across western Canada. The corporation is listed on the Toronto Stock Exchange and provides information on its operations and financials on its website and SEDAR+.
This expansion is set to enhance Mullen Group's logistics capabilities and warehousing footprint in key Canadian provinces, further solidifying its position in the logistics sector.
The information in this article is based on a press release statement.
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