Mullen Group Ltd. Announces the Acquisition of DWS Logistics Inc.
February 12 2018 - 6:48PM
(TSX:MTL) Mullen Group Ltd. ("
Mullen Group"
"
We", "
Our" and/or the
"
Corporation") is pleased to announce that
effective today we have closed the acquisition of DWS Logistics
Inc. ("
DWS"), a privately owned third party
logistics provider with its head office in Mississauga, Ontario and
distribution centres ("
DC") in the greater Toronto
area and Lower Mainland of British Columbia.
DWS provides Value-Added Warehousing and
Distribution ("VAWD") services which includes
warehousing, distribution, order fulfilment, cross docking, and
transloading, all of which are supported by a robust inventory
management system. With over 500,000 square feet of
warehousing space situated in four DC in Mississauga, Ontario; one
DC in Delta, British Columbia; and one DC in Richmond, British
Columbia, DWS focuses on servicing the consumer products
sector.
This acquisition builds on Mullen Group's
strategy of making investments in the Trucking/Logistics segment
that are tied to the consumer products sector and aligns with our
2018 priorities of pursuing acquisitions and accelerating our
investments into the non-asset logistics business.
"We are very pleased to announce the acquisition
of DWS as it marks our first step into the VAWD industry. The
VAWD services that DWS provides are a natural extension to our
Trucking/Logistics segment particularly since DWS' service focus is
on the consumer products sector which is a sector that is closely
correlated to our regional less-than-truckload operations. We
will operate DWS as a stand-alone Business Unit and I am pleased to
advise that Greg Miller, one of DWS' former owners, has agreed to
stay on with DWS and serve as its President and Business Unit
leader. We expect that DWS will be of immediate benefit by
leveraging our Trucking/Logistics network to provide more delivery
options to their customers while providing a VAWD solution to our
other Business Units' customers," said Mr. Richard J. Maloney,
Senior Vice President.
Mullen Group expects this transaction will
contribute in excess of $15.0 million of annualized revenue and
will be immediately accretive. DWS generates margins that are
in line with Mullen Group's non-asset based Business Units in the
Trucking/Logistics segment and management believes that once
synergies are realized, margins will improve. DWS will be
operated as an independent, self-managed Business Unit within
Mullen Group's Trucking/Logistics segment.
This news release may contain forward-looking
statements that are subject to risk factors associated with the oil
and natural gas business and the overall economy. Mullen
Group believes that the expectations reflected in this news release
are reasonable, but results may be affected by a variety of
variables. 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 Canadian securities laws. Mullen Group
relies on litigation protection for "forward-looking"
statements.
Mullen Group is a 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 and provides a wide range of
specialized transportation and related services to the oil and
natural gas industry in western Canada - two sectors of the economy
in which Mullen Group has strong business relationships and
industry leadership. 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.
For further information, please contact:Mr.
Murray K. Mullen - Chairman of the Board, Chief Executive Officer
and PresidentMr. P. Stephen Clark - Chief Financial OfficerMr.
Richard J. Maloney - Senior Vice President
121A - 31 Southridge DriveOkotoks, Alberta,
Canada T1S 2N3Telephone: 403-995-5200Fax:
403-995-5296
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