Mullen Group recently announced that it has entered into a letter of intent (LOI) to buy Richmond, British Columbia-based ContainerWorld Forwarding Services and its operating subsidiaries. The LOI contemplates standard due diligence and the execution of a purchase and sale agreement, both of which have been initiated. The deal is scheduled to close in the second quarter of 2024, subject to regulatory approval and final closing conditions.
ContainerWorld is a Canadian logistics company that provides integrated supply chain solutions to the alcoholic beverage and hospitality industries. And through a network of customs and sufferance bonded warehouses, ContainerWorld provides: inventory management, freight forwarding, warehousing, and distribution services to international and domestic customers in British Columbia and Ontario.
ContainerWorld will operate within Mullen Group’s Logistics & Warehousing segment (L&W) and it is expected to generate annualized revenue of approximately $150.0 million. And the company expects operating income before depreciation and amortization (OIBDA) margins to be consistent with the L&W segment, once we have implemented our disciplined business practices, process improvements and technology. Mullen Group will be funding the transaction from its existing credit lines.
KEY QUOTES:
“The addition of ContainerWorld demonstrates our continued strategic focus of diversifying service offerings into verticals and markets that we consider as great long-term opportunities. Globally, alcoholic beverages is a trillion-dollar industry and here in Canada, it is a multi-billion dollar industry that is expected to grow as the Canadian population grows. ContainerWorld is a leading integrated logistics provider to international and domestic wine, beer and spirits producers that are looking for a safe and reliable customs bonded service provider in Canada. This acquisition further expands our operations in the provinces of British Columbia and Ontario, home to fifty percent of Canada’s population, and will add over one million square feet of warehousing space to Mullen Group.”
“We are delighted to have ContainerWorld join our expanding logistics network. It is an excellent company with a long history, traits we consider important to our investment strategy. Founded by Dennis Chrismas, ContainerWorld has grown to be one of the largest alcoholic beverage logistics companies in Canada. I am also pleased to announce that Dennis Chrismas will continue in his current role and will oversee the business as we transition ContainerWorld from a private company to being part of a large public company.”
— Murray K. Mullen, Chair and Senior Executive Officer
