Mullen Group Ltd. will acquire Mississauga based Apps Transport Group Inc. and the businesses Apps Cartage Inc. and Apps Cargo Terminals Inc. The deal is scheduled to close on June 1, 2021, subject to regulatory approval.
Apps was founded in 1985 and provides less-than-truckload (LTL), along with truckload, intermodal and some warehousing services primarily from its head office in Mississauga, Ontario. It also has five locations throughout western Canada.
Through a combination of company trucks, independent owner operators, and interline partners, APPS and its 300-plus employees serve the commercial supply; food and beverage; and retail and consumer sectors.
“We invest in companies that meet the goal of expanding our business in key markets within Canada,” said Murray Mullen, chairman and CEO of the Mullen Group.
“The other part of our strategy is investing in businesses that can operate as standalone entities within our diversified logistics service offerings. Apps meets both objectives and is precisely the type of opportunity we have patiently waited to acquire.
Apps founder Rob McDonald will continue in his current role and will manage the business along with his business partners and employees.
Dealing with disruption
Mullen said the merger will help both companies compete in a supply chain disrupted by online shopping. “We will be better positioned, not just to compete with these large disrupters but to service those smaller customers and retailers that need access to both technology solutions and a large terminal network, which is our access point to customers across the Canadian marketplace,” he said.
Apps will operate within Mullen Group’s Less-Than-Truckload Segment and it is expected to generate annualized revenue of approximately $90.0 million and OIBDA margins consistent with the LTL Segment. Mullen Group will be funding the transaction from existing cash and credit lines.
Mullen Group is one of Canada’s largest logistics providers. It provides a wide range of services including less-than-truckload, truckload, warehousing, logistics, transload, oversized and specialized hauling transportation. It also offers specialized services related to the energy, mining, forestry and construction industries in western Canada, including water management, fluid hauling and environmental reclamation.