Latest news with #MullenGroup
The Market Online
3 days ago
- Business
- The Market Online
Despite turbulent markets this logistics company continues to grow
Alberta-based logistics company, Mullen Group Ltd. (TSX:MLT) is making major moves in 2025. In this interview we unpack the Cole Group of Companies acquisition and dive into the details of Mullen's C$400 million private placement debt, which is fueling the company's expansion. Joanna Scott, Senior Corporate Officer, and Carson Urlacher, Senior Financial Officer at Mullen Group join Stockhouse for an update. Stockhouse: So, Joanna, I'm going to start with you here. The Mullen Group has certainly been busy over the first half of 2025. I mean, that is clear. So, my first question is, if you can tell us more about what the company has been up to? JS: lt's been a great time for Mullen Group and in an uncertain market and we've had a lot of exciting things happening, two of which stand out to us because they really set us up for the long term and our future. And that is, as you had said, our acquisition of the Cole Group of companies, which we announced the closing of today, and also our private placement notes offering. We priced that and we announced that pricing on May 22nd, 2025. Stockhouse: Well, let's peel that back just a little bit more, and maybe, Joanna, you can continue on here. Tell us about your acquisition of the Cole Group of companies and what Cole Group actually does. JS: Yes, and I'll start by saying we are absolutely thrilled to add the Cole Group to our organization and to welcome its employees into our group of companies. But before I get into that, I just want to step back and explain a little bit about why we were able to do the Cole acquisition when we did, and we have to go all the way back to 2022 at a time when a lot of other companies in the industry were growing and buying companies. We actually didn't like the valuations at that time. And so, we kind of sat back and we were quiet and we were disciplined, and we kind of held our cash for another day. And lo and behold, that day came not that long ago, and we were thrilled to be able to use that money to acquire such a great company. It's a gem and it really is a generational opportunity to be able to acquire the Cole group and, put it into our group of companies. Stockhouse: Absolutely. Now what do they do? JS: Well, they're over a hundred years old, and they were founded in the 1920s, and they have a long proven record of success. They are an industry leading full spectrum logistics company, and they do customs brokerage as kind of their main line of business, and then they also do some freight forwarding and some customs consulting services. They also operate throughout Canada and the US from 43 locations. And those locations are strategically located at air and seaports and land borders, and they also have over 700 employees that provide industry leading customs and logistics services to a very diverse group of North American and international customers. And they do that through a suite of proprietary technology software. Stockhouse: Wow. Now quite a partnership that you all have now. Let's flip to you, Carson. What about the financial metrics behind the acquisition? What insights can you share about that? CU: So, Cole Group is expected to generate roughly about 300 million of annualized revenue and approximately 20 million of operating income before depreciation and amortization. So that's commonly referred to as EBITDA. So, Cole Group operates a very non-asset based business. So, EBITDA is essentially EBIT. Now, what did we pay for it? It was approximately 190 million of cash consideration, which is subject to a working capital adjustment, which is no different than a lot of transactions of this size and nature. So, the working capital we'll receive 29 million of working capital upon closing of the transaction, and included in the 190 million of consideration is also 10 million of real estate mainly associated with office space and those sorts of things that that we'll end up acquiring as part of the transaction. Stockhouse: Wow. This is fascinating. Joanna, I'm going to go back to you on this one. Can you tell our audience a bit about the strategic rationale behind the acquisition? JS: Sure. And, there were a number of reasons why we really liked the Cole acquisition. And you know, you've probably heard us talk about our precision-based acquisitions. It has to be the right fit, the right price, and have the right synergies. And the Cole Group fit that for a number of reasons, but I'll give you kind of five key strategic reasons why we liked it. The first is it really allows us to expand that non-asset-based logistics and our entire mile service offering. And that provides our customers with enhanced choice and flexibility. It also provides meaningful synergies through cross-selling opportunities with our US 3PL segment, and then also within other divisions of Mullen Group. It also allows us to assist our customers in managing the increasingly complex global trade market. I think we can all agree that tariffs and trade are not getting any easier these days. And then another thing you'll hear us talk about is our free cash. The acquisition of Cole Group will be immediately accretive. They generate free cash and they have minimal capital expenditures. They're really just made up of very skilled professional employees and technology and we like that business model. And lastly, it is a foundation for our long-term growth. The Cole group really does that. It establishes a robust platform for us for our future growth in the US and the international logistics segment. And it's something that we really have been focused on lately for the longer term. Stockhouse: So you really just took your time and really did your due diligence, and that is so important to make sure that that partnership, you know, is a success. So, great job on that for sure. Now, Carson, the big question on this, how did the funding come together for the acquisition of Cole Group? CU: Well, you know, as to Joanna's point earlier, we really didn't use a lot of our bullets when the market was peaked back in 2022 and 2023. So, we have initially funded the transaction using our 525 million of bank credit facilities. But we always, our strategy has always been to match long-term assets, including acquisitions with long-term structured debt. So, what we did on May 22nd was we entered into the private debt markets raising 400 million of 12 year money and basically structured that debt out over the long term. So over that 400 million, a portion of those proceeds are going to be used to repay that 525 million of bank line. So we'll be undrawn. We'll also be refinancing some notes that are coming due next year in October of 2026 with that funding. And it's also going to leave us with approximately 125 million of cash on the balance sheet with which we can deploy going forward. So, a liquidity position, we're going to have over 600 million of liquidity, including our cash and our undrawn bank line. So on we're in a pretty good space going forward. Stockhouse: Great job, guys, for sure. Now, as we close out our time here today, Carson, what additional information can you let us in on with your private placement debt transaction? CU: Well, I think the private placement can be characterized. You know, we were very well received, again with the private debt markets. We had very strong demand. In fact, we were over seven times oversubscribed on the bids compared to our initial offering. So having a structured debt like this really puts us in elite territory compared to our peers. You have to have a balance sheet that's structured with real estate and consistently generate free cash over the long term in order to play in this market. So, it really differentiates us from a lot of our peers. So the, the notes are actually getting into more specifics of them -they're combined with both Canadian and U.S. denominated currency at approximately about a 6.2 interest rate coming due in 12 years. Which is remarkably consistent with 20 years ago when we entered into the debt markets. The interest rates are almost identical as to as to what we've achieved now. So, it's expected to close in early July. So, we'll get the funding then. And I'd also say that this round of financing is essentially the same financial terms financial covenants as to the debt that we raised last summer. So really what we did was we de-risked the risk of, of not being able to finance next summer. Who knows where the debt markets and the interest rates are going to be next year. So, what we wanted to do was de-risk it, and, and we used the opportunity to refinance next year's notes along with the Cole acquisition now to really be able to put our balance sheet into a secure position on behalf of our shareholders and really protect that dividend and our balance sheet going forward. Stockhouse: Well, let's lean into that just a little bit further then, Carson. How satisfying is it for Mullen to be able to execute on its strategy despite all of the uncertainty right now in the market? CU: Well, that's a very good point. You know, it is in uncertain times. We're still showing both growth with the Cole acquisition. So, we're growing our business in a time where everyone else is kind of on the defensive and really, we put our balance sheet in a position where, where we can now sit back and deploy capital and not have to worry about financing over the next decade. So really, it's putting us in an enviable position. JS: It sure is. And I think I just add to Carson to say a huge shout out to the team here at Mullen Group. We've done a fantastic job, and I couldn't be more proud of our team and just very excited about what the future holds for Mullen Group. Stockhouse: Absolutely. And there seems to be a lot on the go, and we hope to have you back for further updates soon. Mullen Group Ltd.'s website is and you can find them on the TSX under the ticker symbol MTL. Join the discussion: Find out what everybody's saying about this stock on the Mullen Group investor discussion forum, and check out the rest of Stockhouse's stock forums and message boards. Join the discussion: Find out what everybody's saying on investor discussion forums at Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
Hamilton Spectator
30-05-2025
- Business
- Hamilton Spectator
Mullen Group Ltd. Closes Acquisition of Cole Group of Companies
OKOTOKS, Alberta, May 30, 2025 (GLOBE NEWSWIRE) — (TSX: MTL) Mullen Group Ltd. ('Mullen Group', 'We', 'Our' and/or the 'Corporation') is pleased to announce the closing of the acquisition of Cole Group Inc., Cole International Inc., Abco International Freight Inc. and all related entities (collectively the 'Cole Group') effective June 1, 2025. Founded in the 1920s, the Cole Group is an industry leading full spectrum logistics services company specializing in customs brokerage, freight forwarding and trade consulting, operating throughout Canada and the U.S. with a long standing proven track record of success. Cole Group operates from 43 locations, which includes strategically situated offices at various air and seaports of entry and land border crossings. Employing over 700 employees, the Cole Group provides industry leading customs and logistics services to a diverse group of North American and international customers through a suite of proprietary technology solutions. Financial Overview Cole Group is expected to generate annualized revenues of approximately $300.0 million and operating income before depreciation and amortization ('OIBDA') of $20.0 million. Cole Group operates a non-asset based business and has minimal capital expenditure requirements. Mullen Group acquired the Cole Group for $190.0 million of cash consideration subject to a purchase price adjustment including receiving $29.0 million of required working capital. Mullen Group will also be acquiring approximately $10.0 million of real estate consisting mainly of office space, which is included in the $190.0 million of cash consideration. Strategic Rationale About Mullen Group Ltd. Mullen Group is a public company with a long history of acquiring companies in the transportation and logistics industries. Today, we have one of the largest portfolios of logistics companies in North America, providing a wide range of transportation, warehousing and distribution services through a network of independently operated businesses. Service offerings include less-than-truckload, truckload, warehousing, logistics, transload, oversized, third-party logistics and specialized hauling transportation. In addition, our businesses provide a diverse set of specialized services related to the energy, mining, forestry and construction industries in western Canada, including water management, fluid hauling and environmental reclamation. The corporate office provides the capital and financial expertise, legal support, technology and systems support, shared services and strategic planning to its independent businesses. Mullen Group is listed on the Toronto Stock Exchange under the symbol 'MTL'. Additional information is available on our website at or on the Corporation's issuer profile on SEDAR+ at . Contact Information Mr. Murray K. Mullen - Chair, Senior Executive Officer and President Mr. Richard J. Maloney - Senior Operating Officer Mr. Carson P. Urlacher - Senior Financial Officer Ms. Joanna K. Scott - Senior Corporate Officer 121A - 31 Southridge Drive Okotoks, Alberta, Canada T1S 2N3 Telephone: 403-995-5200 Fax: 403-995-5296 Disclaimer Mullen Group may make statements in this news release that reflect its current beliefs and assumptions and are based on information currently available to it and contains forward-looking statements and forward-looking information (collectively, 'forward-looking statements') within the meaning of applicable securities laws. This news release may contain forward-looking statements that are subject to risk factors associated with the overall economy and the oil and natural gas business. These forward-looking statements relate to future events and Mullen Group's future performance. All forward looking statements and information contained herein that are not clearly historical in nature constitute forward-looking statements, and the words 'may', 'will', 'should', 'could', 'expect', 'plan', 'intend', 'anticipate', 'believe', 'estimate', 'propose', 'predict', 'potential', 'continue', 'aim', or the negative of these terms or other comparable terminology are generally intended to identify forward-looking statements. Such forward-looking statements represent Mullen Group's internal projections, estimates, expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These forward-looking statements involve known or unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Mullen Group believes that the expectations reflected in these forward-looking statements are reasonable; however, undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. In particular, forward-looking statements include but are not limited to the following: (i) that Cole Group is expected to generate annualized revenues of approximately $300.0 million and OIBDA of $20.0 million; (ii) the acquisition of Cole Group provides for meaningful synergies through cross-selling opportunities within our US 3PL segment and other divisions within the Mullen Group; (iii) the acquisition of Cole Group will be immediately accretive by generating free cash flow with minimal capital expenditure requirements; and (iv) the acquisition of Cole Group establishes a robust platform for future U.S. and international growth. These forward-looking statements are based on certain assumptions and analysis made by Mullen Group in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. These assumptions include but are not limited to the following: (i) that Mullen Group will be able to execute on the transition of Cole Group from a private company to being part of a public company; (ii) that Mullen Group will be able to retain Cole Group customers and carry on business in the normal course; (iii) that synergies with other business units will exist and that Mullen Group will be able to realize upon them; (iv) that Cole Group will be able to generate free cash and require minimal capital expenditures thereby being immediately accretive; (v) that Mullen Group will be presented with opportunities for growth in the United States and internationally; and (vi) that Mullen Group will generate sufficient cash to capitalize on any growth opportunities presented. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained herein is made as of the date of this news release and Mullen Group disclaims any intent or obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable Canadian securities laws. Mullen Group relies on litigation protection for forward-looking statements.
Yahoo
22-05-2025
- Business
- Yahoo
Mullen Group Ltd. Announces Pricing of Private Placement Notes Offering
OKOTOKS, Alberta, May 22, 2025 (GLOBE NEWSWIRE) -- (TSX: MTL) Mullen Group Ltd. ("Mullen Group", "We", "Our" and/or the "Corporation") today announced that it has priced an approximately CAD$400.0 million aggregate principal amount senior secured notes offering (the "Notes Offering"), by way of a private placement. The senior secured notes (the "Notes") will be guaranteed by Mullen Group's subsidiaries, MT Investments Inc. and MGL Holding Co. Ltd. (each, a "Guarantor") and secured by a first ranking charge over all present and after-acquired property of the Corporation and each Guarantor. The Notes will rank pari passu with Mullen Group's outstanding senior secured notes maturing July 2034 and its amended and restated bank credit facilities (see the Corporation's press release dated July 10, 2024). The Notes will mature on July 10, 2037, and are comprised of aggregate principal amounts of US$50.0 million with a yield of 6.91% per annum and CAD$325.0 million with a yield of 6.04% per annum. Interest on the Notes will accrue from the date of issue and be payable semi-annually in arrears on June 7 and December 7, beginning on December 7, 2025. The Notes Offering is expected to close on July 10, 2025, subject to the satisfaction of customary closing conditions. Mullen Group intends to use the net proceeds from the Notes Offering to prepay its existing private placement debt maturing in October 2026 and for general corporate purposes. "Today, we finalized another successful note private placement offering with long-term investors providing our organization with additional liquidity to fund our future growth plans. I want to thank all of the investors for investing in the Mullen Group. We will use the funds to prepay the private placement notes that mature in 2026 and to pursue new acquisitions that fit our strategic plans. Today's announcement is especially gratifying given all of the economic uncertainty created by tariffs and trade issues," commented Mr. Murray K. Mullen, Chair and Senior Executive Officer. The Notes have been offered only in a private placement to institutional accredited investors in reliance on Section 4(a)(2) under the Securities Act of 1933, as amended (the "Securities Act"). The Notes have not been registered under the Securities Act, Canadian securities laws or the securities laws of any other jurisdiction, and may not be offered or sold within the United States, or to or for the account or benefit of any U.S. Person, absent registration or an applicable exemption from registration requirements. Mullen Group is under no obligation, and has no intention to, register the Notes under the Securities Act, Canadian securities laws or the securities laws of any other jurisdiction in the future. The Notes have not been and will not be qualified for distribution to the public under applicable Canadian securities laws and, accordingly, any offer and sale of the securities in Canada will be made on a basis which is exempt from the prospectus and dealer registration requirements of such securities laws. The Notes have been offered in Canada on a private placement basis only to "accredited investors" and 'permitted clients' under applicable Canadian Securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes. This press release also does not constitute an offer to sell or the solicitation of an offer to buy the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction, or an exemption is available from such registration or qualification. About Mullen Group Ltd. Mullen Group is a public company with a long history of acquiring companies in the transportation and logistics industries. Today, we have one of the largest portfolios of logistics companies in North America, providing a wide range of transportation, warehousing and distribution services through a network of independently operated businesses. Service offerings include less-than-truckload, truckload, warehousing, logistics, transload, oversized, third-party logistics and specialized hauling transportation. In addition, our businesses provide a diverse set of specialized services related to the energy, mining, forestry and construction industries in western Canada, including water management, fluid hauling and environmental reclamation. The corporate office provides the capital and financial expertise, legal support, technology and systems support, shared services and strategic planning to its independent businesses. Mullen Group is listed on the Toronto Stock Exchange under the symbol "". Additional information is available on our website at or on the Corporation's issuer profile on SEDAR+ at Contact Information Mr. Murray K. Mullen - Chair, Senior Executive Officer and PresidentMr. Richard J. Maloney - Senior Operating OfficerMr. Carson P. Urlacher - Senior Financial OfficerMs. Joanna K. Scott - Senior Corporate Officer 121A - 31 Southridge DriveOkotoks, Alberta, Canada T1S 2N3Telephone: 403-995-5200Fax: 403-995-5296Mullen Group may make statements in this news release that reflect its current beliefs and assumptions and are based on information currently available to it and contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. This news release may contain forward-looking statements that are subject to risk factors associated with the overall economy and the oil and natural gas business. These forward-looking statements relate to future events and Mullen Group's future performance. All forward looking statements and information contained herein that are not clearly historical in nature constitute forward-looking statements, and the words "may", "will", "should", "could", "expect", "plan", "intend", "anticipate", "believe", "estimate", "propose", "predict", "potential", "continue", "aim", or the negative of these terms or other comparable terminology are generally intended to identify forward-looking statements. Such forward-looking statements represent Mullen Group's internal projections, estimates, expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These forward-looking statements involve known or unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Mullen Group believes that the expectations reflected in these forward-looking statements are reasonable; however, undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. In particular, forward-looking statements include but are not limited to the following: the terms and timing of the Notes Offering and the use of proceeds of the Notes Offering. These forward-looking statements are based on certain assumptions and analyses made by Mullen Group in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. These assumptions include but are not limited to the following: (i) that the Notes Offering will close as expected. For further information on any strategic, financial, operational and other outlook on Mullen Group's business please refer to Mullen Group's Management's Discussion and Analysis available for viewing on Mullen Group's issuer profile on SEDAR+ at Additional information on risks that could affect the operations or financial results of Mullen Group may be found under the heading "Principal Risks and Uncertainties" starting on page 48 of the 2024 Annual Financial Review as well as in reports on file with applicable securities regulatory authorities and may be accessed through Mullen Group's issuer profile on the SEDAR+ website at The forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained herein is made as of the date of this news release and Mullen Group disclaims any intent or obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable Canadian securities laws. Mullen Group relies on litigation protection for forward-looking in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Hamilton Spectator
07-05-2025
- Business
- Hamilton Spectator
Mullen Group Ltd. Announces Election of Directors
OKOTOKS, Alberta, May 07, 2025 (GLOBE NEWSWIRE) — (TSX: MTL) Mullen Group Ltd. ('Mullen Group', 'We', 'Our' and/or the 'Corporation') announced today the results of the vote on election of directors at the annual meeting of shareholders of the Corporation held on May 6, 2025. The vote was conducted by ballot and the detailed results are as follows: About Mullen Group Ltd. Mullen Group is a public company with a long history of acquiring companies in the transportation and logistics industries. Today, we have one of the largest portfolios of logistics companies in North America, providing a wide range of transportation, warehousing and distribution services through a network of independently operated businesses. Service offerings include less-than-truckload, truckload, warehousing, logistics, transload, oversized, third-party logistics and specialized hauling transportation. In addition, our businesses provide a diverse set of specialized services related to the energy, mining, forestry and construction industries in western Canada, including water management, fluid hauling and environmental reclamation. The corporate office provides the capital and financial expertise, legal support, technology and systems support, shared services and strategic planning to its independent businesses. Mullen Group is listed on the Toronto Stock Exchange under the symbol 'MTL'. Additional information is available on our website at or on the Corporation's issuer profile on SEDAR+ at . Contact Information Mr. Murray K. Mullen - Chair, Senior Executive Officer and President Mr. Richard J. Maloney - Senior Operating Officer Mr. Carson P. Urlacher - Senior Financial Officer Ms. Joanna K. Scott - Senior Corporate Officer 121A - 31 Southridge Drive Okotoks, Alberta, Canada T1S 2N3 Telephone: 403-995-5200 Fax: 403-995-5296
Yahoo
01-05-2025
- Business
- Yahoo
Mullen Group to acquire logistics firm focused on customs brokerage, forwarding
This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. Mullen Group plans to acquire the Cole Group, a privately owned logistics services company, adding to Mullen's portfolio of independently managed business units, according to an April 14 press release. The transaction — which is expected to close this quarter — brings more than 700 employees and 43 locations across the U.S. and Canada to the Canada-based company's logistics network. Terms of the deal were not disclosed. 'Not only is the Cole Group an industry leader in customs brokerage and trade consulting, which happens to be one of the most talked about issues of the day, they have a sizeable 3PL freight service offering, a service that aligns very closely with our U.S. & International Logistics segment,' said Murray Mullen, chair and senior executive officer of Mullen Group, in the release. Mullen Group has a long history of acquisitions within the logistics and transportation industries, as a means to grow its service offerings. Last year, Mullen purchased Pacific Northwest Moving, a less-than-truckload carrier, and ContainerWorld Forwarding Services, a logistics service provider to the alcohol industry of Western Canada. Cole Group includes subsidiaries Cole International – with customs brokerage, freight and trade consulting department – and Abco International Freight, a freight forwarding company. In recent years, Cole International has worked to expand its presence in the U.S., opening new branches in Buffalo, New York; Columbia, South Carolina; Detroit; Port Huron, Michigan; Seattle, and, most recently, Houston. The acquisition will align with Mullen Group's U.S. and international logistics segment, which currently has one business unit: Haulistic, a Chicago-based third-party logistics provider. The public company acquired QuadExpress in 2021 and rebranded it as Haulistic that same year. 'When I first met the owner of Cole Group, Mr. Don Lucky, it was evident that our companies shared in a very similar set of values — integrity, people focused and customer service as the centerpiece of the company,' Mullen said in the release, adding that Cole Group will continue to be overseen by its existing leadership team. Mullen Group plans to fund the Cole Group acquisition with existing cash and credit facilities, the release states. According to its Q4 earnings report, Mullen Group had working capital of $281.5 million, including $126.3 million in cash, as of Dec. 31. Recommended Reading Mullen Group budgets $150M for acquisitions next year Sign in to access your portfolio
