OKOTOKS, Alta. – Mullen Group announced today that it has officially closed its acquisition of Courtesy Freight Systems. Concurrent to the closing of the transaction, Mullen Group entered into an agreement to acquire the majority of the facilities.
Courtesy is a privately owned company based in northwestern Ontario and Manitoba that provides regional less-than-truckload services. It has a fleet of 68 power units and 48 trailers through a network of six terminals. It employed 113 people.
“This acquisition, while not significant in terms of size or revenue, is important to our organization for two fundamental reasons,” said Murray K. Mullen, chairman and CEO of Mullen Group. “Firstly, from a strategic perspective we continue to invest in regional LTL opportunities. With the acquisition of Courtesy, we will own and operate six regional LTL businesses in Canada, providing regional service to customers from Ontario right through to British Columbia. Secondly, Courtesy is an excellent complement to Gardewine Group Limited Partnership (“Gardewine”), which we acquired in January, 2015. Those two companies operate in similar geographic markets serving communities and customers in Manitoba and northwestern Ontario. I fully expect that we can realize operational synergies ensuring all customers continue to receive the very best service and value options.
“Investing in regional carriers with strong ties to the communities they serve is an important element of our business model. Ron Speziale, the owner of Courtesy, has built a company that is respected by their customers and employees alike. I am delighted to add Courtesy to our organization. We now have to ensure we build on Ron’s past successes.”
The company expects the acquisition to be accretive, adding $2 million in annual operating income and provide support to Mullen during a time when the oil and natural gas industry in western Canada is currently experiencing a downturn.