Mullen Group, one of Canada’s largest logistics providers, has signed a deal to buy Richmond, British Columbia-based ContainerWorld Forwarding Services.
Financial terms have not been revealed under the letter of intent but Mullen has initiated due diligence to purchase the company and its subsidiaries during the second quarter.
ContainerWorld serves the supply chain needs of the alcoholic beverage and hospitality industries, providing inventory management, freight forwarding, warehousing, and distribution services to international and domestic customers in the provinces of British Columbia and Ontario, home to 50% of Canada’s population.
Founded in 1993 by Dennis Chrismas, the company will operate within Mullen’s logistics and warehousing segment and it is expected to generate annualized revenue of approximately $150m. The acquisition will add about 93,000 sq m of warehousing space to Mullen.
“The addition of ContainerWorld demonstrates our continued strategic focus of diversifying service offerings into verticals and markets that we consider as great long-term opportunities. Globally, alcoholic beverages is a trillion-dollar industry and here in Canada, it is a multi-billion dollar industry that is expected to grow as the Canadian population grows,” said Murray K. Mullen, chair and senior executive officer at Mullen Group.
Tracing its roots back to 1949, the Toronto-listed Mullen Group’s segments include less-than-truckload, truckload, warehousing, logistics, transload, third-party logistics and specialised hauling transportation.