Dive Brief:
- Mullen Group will acquire Richmond, British Columbia-based ContainerWorld Forwarding Services and its operating subsidiaries, the Mullen Group announced last week.
- The companies have signed a letter of intent that “contemplates standard due diligence and the execution of a purchase and sale agreement, both of which have been initiated,” according to the announcement. The terms were not disclosed.
- The acquisition, slated to close in Q2, will expand the reach of the Okotoks, Alberta-based Mullen Group with a premier logistics provider to the Western Canada alcohol industry.
Dive Insight:
ContainerWorld provides a range of logistics services in British Columbia, serving 3,500 customers across the region, according to its website.
“We are a leading niche service provider to the beverage alcohol industry of Western Canada,” the company’s website says. “We also handle commodities compatible to the beverage market — juices, water, confectionary — we strive for vertical market integration.”
ContainerWorld Founder Dennis Chrismas will continue in his role as it moves under the helm of Mullen Group, a publicly-traded, leading specialized carrier of oil and natural gas in western Canada.
Mullen Group, one of Canada’s largest trucking firms, is funding the deal from existing credit lines and expects it to generate annualized revenue of approximately $150 million.
"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,” Murray Mullen, chair and CEO of Mullen Group, said in the announcement.
It’s a Dry January bet on alcohol after curbed consumer spending due to inflation created a tough market for beverage companies and their supply chains throughout 2023. But Mullen believes it’s a good long-term play, and the country’s beverage market could grow across drink categories in coming years.
“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,” Mullen said.
