Mullen Group completes acquisition of ContainerWorld Forwarding Services to strengthen logistics and warehousing segment
Mullen Group Ltd. has announced the completion of its acquisition of ContainerWorld Forwarding Services Inc. and its subsidiaries, effective May 1, 2024. ContainerWorld, based in Richmond, British Columbia, specializes in providing integrated supply chain solutions to the alcoholic beverage and hospitality industries. The acquisition will see ContainerWorld operate as an independent, wholly-owned subsidiary of Mullen Group.
Key Points:
1. The acquisition is expected to generate approximately $150 million in annual revenue, diversifying Mullen Group’s Logistics & Warehousing segment.
2. ContainerWorld adds over one million square feet of warehouse space to Mullen Group’s infrastructure in British Columbia and Ontario.
3. The acquisition aligns with Mullen Group’s strategic focus on diversifying into new markets and expanding long-term opportunities.
Mullen Group Ltd. acquires ContainerWorld to expand logistics and warehousing, adding over one million square feet of storage and $150M in annual revenue.
Deal Background:
Mullen Group first announced the acquisition in January 2024, pending due diligence and regulatory approval. ContainerWorld, founded in 1993 by Dennis Chrismas, is recognized as one of the largest alcoholic beverage logistics providers in Canada. It offers customs-bonded inventory management, freight forwarding, warehousing, and distribution services across its bonded warehouses.
Strategic Implications for Mullen Group:
Chair and Senior Executive Officer of Mullen Group, Mr. Murray K. Mullen, emphasized that this acquisition demonstrates their strategic focus on diversifying services into promising markets. “ContainerWorld is a leading integrated logistics provider for wine, beer, and spirits producers looking for a reliable customs-bonded provider in Canada. This acquisition expands our presence in British Columbia and Ontario, where 50% of the Canadian population resides,” he explained.
Mullen also praised ContainerWorld’s long history and its alignment with Mullen Group’s investment strategy, noting that Chrismas will continue leading the company during its transition.
ContainerWorld will function within the Logistics & Warehousing segment of Mullen Group and is expected to generate consistent operating income before depreciation and amortization (OIBDA) margins once business practices and technological improvements are implemented. Mullen Group will fund the transaction through existing credit lines, emphasizing its financial strength and strategic alignment with the Corporation’s growth objectives.
Overall, this acquisition strengthens Mullen Group’s warehousing capacity while enhancing its logistics services for the alcoholic beverage and hospitality sectors.