Mullen Group Ltd. Announces the Acquisition of DWS Logistics Inc.
OKOTOKS, Alberta, Feb. 12, 2018 (GLOBE NEWSWIRE) -- (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 President
Mr. P. Stephen Clark - Chief Financial Officer
Mr. Richard J. Maloney - Senior Vice President
121A - 31 Southridge Drive
Okotoks, Alberta, Canada T1S 2N3