Mullen Group Ltd. Announces Accretive Acquisition
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OKOTOKS, AB, April 16, 2021 /PRNewswire/ - (TSX: MTL) Mullen Group Ltd. ("Mullen Group", "We", "Our" and/or the "Corporation") is pleased to announce that it has acquired the Bandstra Group of Companies ("Bandstra Group"), including Bandstra Transportation Systems Ltd. ("Bandstra Transportation") and Babine Truck & Equipment Ltd. ("Babine"). A definitive share purchase agreement was signed, and the acquisition closed on April 16, 2021.
The Bandstra Group was established in 1955 and has a long history of servicing customers in the Province of British Columbia through its two primary operating businesses; Bandstra Transportation and Babine, employing an experienced and dedicated workforce of over 400 British Columbia residents.
Bandstra Transportation, based in Smithers, British Columbia, provides a wide range of transportation and logistics services to communities in northern British Columbia including truckload; general freight; less-than-truckload; and specialized hauling services. Customers are serviced through a network of eight (8) owned and three (3) leased facilities. They operate a fleet of approximately 180 power units, 360 trailers and 70 pieces of support equipment, generating approximately $65.0 million in annualized revenue.
Babine is an Original Equipment Manufacturer ("OEM") dealership that operates from three (3) locations in British Columbia: Smithers, Prince George and Prince Rupert. In addition to providing sales of OEM trucks and trailers, Babine provides equipment and maintenance to Bandstra Transportation as well as parts and service work that supports the natural resources, energy and transportation industries in northern British Columbia. Babine generates revenue of approximately $20.0 million annually.
"This is another gem of a company that I am delighted to have in our growing organization. The Bandstra name is well known to many in the transportation industry. Founded 65 years ago, this family owned business has grown to be one of the largest diversified transportation companies in British Columbia earning a reputation for quality service and community involvement.
"I want to take this opportunity to welcome the Bandstra Group to our organization. I know from discussions and my past experience that this is a very difficult decision for the Bandstra family. Here is a company that has been family owned and operated for decades, so for the Mullen Group to be chosen as the acquiring company speaks to our reputation. We have a history of acquiring family owned businesses and the experience necessary to ensure a smooth transition. I am also pleased that the senior management team, including several of the family members, have agreed to continue to manage and oversee the business. No one knows the Bandstra Group better than the Bandstra family.
"I firmly believe the transportation and logistics sector of the economy is being transformed by the digital revolution and the emergence of e-commerce as a dominant trend in the retail space. The acquisition of the Bandstra Group will enhance the service capabilities of our organization on the west coast and ensure we can compete with any transportation provider," commented Mr. Murray K. Mullen, Chairman and Chief Executive Officer.
Bandstra Transportation will operate within Mullen Group's Logistics & Warehousing segment and Babine will operate within the Specialized & Industrial Services segment. Both are expected to generate returns consistent with their respective operating segment. Mullen Group funded this acquisition from existing cash.
About Mullen Group Ltd.
Mullen Group is one of Canada's largest logistics providers. Our network of independently operated businesses provide 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.
This news release contains forward-looking information within the meaning of applicable securities legislation about the acquisition of Bandstra Group. 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.
Forward-looking information in this news release is identified by the words "will" and "anticipates" and includes suggestions of future outcomes, including about the future expansion of our business in western Canada.
Developing forward-looking information involves reliance on a number of assumptions and considerations of certain risks and uncertainties, some of which are specific to Mullen Group and others that apply to the industry generally. The assumptions on which our forward-looking information is based include other risks and uncertainties described from time to time in the filings Mullen Group makes with securities regulatory authorities.
The risks and uncertainties that could cause our actual results to differ materially, include, but are not limited to: risks associated with the trucking/logistics business; the overall economy; and the risks relating to the current and potential adverse impacts of the novel coronavirus pandemic.
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.
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