Mullen Group (TSX:MTL) has acquired two carriers in British Columbia, growing the Canadian transportation and oil services company’s less-than-truckload and delivery business.
Alberta-based Mullen purchased Argus and Inter-Urban, which generate a combined C$25 million (A Canadian dollar equals US$0.77) in annual revenue.
“These businesses have a long-standing history of providing a quality trucking/logistics service in the Province of British Columbia, a tradition we intend to continue to build upon,” Mullen CEO Murray Mullen said in a statement on July 2.
Argus, based in Burnaby, has 57 trucks and specializes in local deliveries, regional less-than-truckload, linehaul and cross-border freight in the Pacific Northwest. Abbottsford-based Inter-Urban, with a fleet of 43-trucks, offers less-than-truckload services and specializes in same-day delivery services for the medical industry.
“We intend to further invest in both companies to capitalize on new opportunities,” Mullen said.
Mullen Group closed a C$110 bought-deal offering on June 21, and also expanded its line of credit with the Royal Bank of Canada by C$25 million.
The acquisitions, which closed on July 1, build on the growing strength of Mullen’s transportation and logistics segment, which set first-quarter profit and revenue records this year.
Mullen reported in April that its 14 transportation and logistics firms, all based in Canada, generated C$30.1 million on revenue of C$215.2 million in the first quarter of 2019.
Murray Mullen told analysts that he would be looking to purchase transportation and logistics firms during the year.