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OKOTOKS, Alberta - Mullen Group Ltd. (TSX: MTL), a prominent player in the North American logistics and transportation sector with a market capitalization of $234 million and impressive year-to-date returns of 24%, has announced a definitive agreement to acquire Cole Group Inc. and its related entities, a move that is expected to close in the second quarter, pending regulatory approvals. According to InvestingPro analysis, the company maintains a "GREAT" financial health score of 3.73 out of 5. This acquisition is set to fortify Mullen Group’s presence in the logistics services industry, particularly in customs brokerage, freight forwarding, and trade consulting.
The Cole Group, a privately owned full-spectrum logistics provider, employs over 700 professionals and operates from 43 locations across Canada and the United States. The company is recognized for its customs and logistics services to a diverse clientele, supported by a suite of proprietary technology solutions.
Mullen Group’s Chair and Senior Executive Officer, Mr. Murray K. Mullen, expressed confidence in the acquisition, highlighting the alignment of services between the Cole Group and Mullen’s U.S. & International Logistics segment. He also noted the shared values of integrity and customer service focus, which have been central to the Cole Group under the leadership of its owner, Mr. Don Lucky.
Following the acquisition, the Cole Group is expected to continue its operations under the current senior leadership team, with the support of its professional associates. The financial details of the transaction were not disclosed, but Mullen Group plans to fund the purchase through existing cash and credit facilities. The company’s strong financial position is evident in its healthy current ratio of 2.67 and robust Altman Z-Score of 16.48, indicating solid financial stability.
About Mullen Group Ltd., it is a publicly traded company with a history of acquiring businesses within the transportation and logistics industries. With a portfolio of independently operated businesses, Mullen Group offers a wide range of services including transportation, warehousing, and distribution, as well as specialized services related to various industries in western Canada.
The acquisition of Cole Group is anticipated to enhance Mullen Group’s service offerings and expand its logistics capabilities. This strategic move is part of Mullen Group’s ongoing growth and diversification within the logistics sector, building upon its impressive revenue growth of 7.6%. For deeper insights into Mullen Group’s growth strategy and comprehensive financial analysis, investors can access the detailed Pro Research Report available on InvestingPro, which provides expert analysis and actionable intelligence for informed investment decisions.
This news report is based on a press release statement from Mullen Group Ltd. and contains forward-looking statements that involve risks and uncertainties. The closing of the acquisition is subject to regulatory approvals and other closing conditions.
In other recent news, Mullen Group reported its financial results for the fourth quarter of 2024, maintaining steady revenue at approximately $500 million, consistent with the previous year. The company’s operating income before depreciation and amortization (OIBDA) was $85 million for the quarter and $332.2 million for the full year. Mullen Group is actively pursuing expansion opportunities in the U.S. market, driven by a challenging economic environment in Canada. The company completed five acquisitions in 2024 and plans to allocate $150 million for mergers and acquisitions in 2025. Additionally, Mullen Group announced a monthly dividend payment of $0.07 per Common Share, payable on April 15, 2025, to shareholders on record as of March 31, 2025. The dividend is classified as an "eligible dividend" for Canadian residents, allowing them to benefit from enhanced tax credit rules. Despite competitive pressures, Mullen Group’s operating margin improved to 17% from 15.9% the previous year, reflecting its focus on disciplined cost management and margin improvement.
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