Canadian trucking and logistics company Mullen Group (TSX: MTL) announced an agreement to acquire Mississauga, Ontario-based International Warehousing & Distribution Inc. (IWD), a provider of customs warehouse and container delivery services.
IWD offers short-term warehouse storage of goods awaiting customs clearance, delivery of import and export airfreight, and full container delivery throughout the greater Toronto area. The company uses a group of dedicated contractors to facilitate pickup and delivery.
The deal is expected to close in the fourth quarter. No financial terms were disclosed.
“This is the type of acquisition that adds value to shareholders. Currently it is not large in terms of revenue, however, as we expand our presence in eastern Canada, IWD will undoubtably serve as a platform for future growth,” stated Mullen Group Chairman and CEO Murray Mullen in the Friday press release.
IWD founder and owner Steve Cox will remain in place during the transition.
“The acquisition of IWD aligns with our strategy of investing into businesses that support the consumer part of the economy. More importantly, this acquisition demonstrates our focus on building out our logistics and warehousing network in the largest metropolitan area in Canada where over seven million consumers live, namely the GTA,” continued Mullen.
In early September, Mullen acquired the remaining 60% of outstanding shares of less-than-truckload (LTL) carrier Pacific Coast Express Limited (PCX). The carrier is based near Vancouver, British Columbia, specializing in cross-border LTL shipments. Mullen previously purchased a minority stake in PCX in 2018.
Mullen Group is one of Canada’s largest trucking and logistics outfits, operating a network of independently run companies throughout western Canada and Ontario.