Canadian trucking and logistics provider Mullen Group said Monday it is acquiring fellow Alberta carrier B. & R. Eckel’s Transport.
Mullen Group (TSX: MTL) said the share purchase transaction, which will be funded with cash and funds from its credit lines, is expected to close on Monday. Financial terms of the transaction were not provided.
Founded in 1965, B&R provides less-than-truckload, truckload and oilfield transportation with a fleet of 400 tractors and 950 trailers. The company has 420 employees operating out of 16 facilities in Northeast Alberta.
“B&R has been a key player in the LTL and energy services space for many years in Northeastern Alberta,” said Murray Mullen, chair and senior executive officer. He noted current leadership will remain in place during the transition.
B&R generates approximately CA$85 million ($62.7 million) in annual revenue. A margin profile for its operations was not provided, however a news release said the fleet is expected to reach operating margins in line with Mullen’s over time.
Results from B&R will flow through Mullen’s LTL and specialized and industrial services segments.
Mullen’s LTL unit reported 330 basis points of operating margin improvement during the first quarter, recording a 16.5% margin. Specialized and industrial services reported 210 bps of operating margin improvement to 18.1%.
Mullen generated CA$2 billion ($1.48 billion) in revenue in 2022.
“The acquisition of B&R is a great example of Mullen Group’s precision-based acquisition strategy and we think our timing is good,” said Mullen’s Senior Operating Officer Richard Maloney. He pointed to favorable commodity prices and production investments in the region as supportive of future growth for B&R.
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