The Mullen Group Ltd. bought QuadExpress, the non-asset-based third party logistics provider business of Quad/Graphics, Inc. for US$40.0 million.
QuadExpress, headquartered in Naperville, Illinois, is a global, technology-enabled, non-asset-based 3PL service provider focused on freight brokerage services across multiple modes of transportation. It provides service to a diverse group of 1,700 North American customers and uses over 6,000 transportation companies.
In 2020, QuadExpress generated annual gross revenue of approximately $135.0 million with operating margins consistent with the North American 3PL sector.
As part of the acquisition, Mullen Group acquired SilverExpress, the proprietary transportation management system technology platform that QuadExpress uses to match customer shipments with transportation carriers.
Revenues are generated from providing a combination of traditional 3PL service offerings to customers and from partnering with agents, who have customer relations and utilize the SilverExpress platform to manage their business.
A part of the deal Quad will continue to use QuadExpress for certain of its 3PL needs for a period of two years.
“We already have an extensive network in Canada and will continue to invest where we find great companies to add to our service offerings. However, there are limits to just how much we can grow in the Canadian market,” said Murray Mullen, Chairman and CEOof Mullen Group.
“The U.S. market, on the other hand, is a new market for our company, offering tremendous opportunity. There is no doubt the U.S. market is key to the North American supply chain and we need to be there. With this acquisition we gain immediate access to one of the largest markets in the world.”
The QuadExpress senior management team – Pat Malone, Dan Hall, Patrick Billie, Erich Fichtner, and Stephen Schnell – will continue to manage the business.