BOLTON, ON. — The Wheels Group Inc., a Mississauga-based 3PL, is buying Mike McCarron’s MSM Group, with closing expected to take place before the end of September.
MSM was founded in 1989 and not only has it become one of Canada’s leading trucking companies, for 15 straight years MSM was named one of the country’s 50 Best Managed companies.
MSM is headquartered in Bolton, ON. but has operations in the U.S. McCarron has been a very active member of the Ontario Trucking Association (OTA).
According to a news release, “for the year ended December 31, 2011, MSM had revenues of approximately $44 million, gross margin of $11 million with adjusted EBITDA of $3.3 million. The aggregate purchase price to be paid by Wheels to acquire the MSM Business will be approximately $18.6 million of which $16.6 million will be paid in cash. The remaining $2 million of the purchase price will be satisfied through the issue of 2 million common shares of Wheels (“Common Shares”) to the vendors at a deemed value of $1.00 per Common Share. The acquisition will be funded from existing cash and the Company’s revolving credit facility.”
Added Wheels CEO Doug Tozer: “The acquisition of MSM supports our strategic goal of enhancing and broadening Wheels’ portfolio of logistics services by adding a well-established multi-national LTL component. MSM customers will benefit with access to additional logistics services provided by Wheels. A quick integration is anticipated, given the high degree of compatibility between information systems and with both companies being ISO registered for over a decade.”
Wheels is based in Mississauga.
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