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Mullen Group plans to acquire APPS Transport Group

Founder of APPS to stay with team

Mullen Group signs letter of intent to acquire APPS Transport Group. (Photo: APPS)

Canadian trucking and logistics company Mullen Group Ltd. (TSX:MTL) announced Monday it has entered into a letter of intent to acquire Canadian less-than-truckload (LTL) and intermodal carrier APPS Transport Group Inc. and its business units, APPS Cartage Inc. and APPS Cargo Terminals. The parties expect to close on the deal June 1.

In the announcement, Murray K. Mullen, chairman and CEO of Mullen Group, expressed excitement that Rob McDonald, the founder of APPS Transport Group, will remain in his current role, as APPS will operate as a stand-alone entity. 

“Massive companies, such as Amazon, are capitalizing on the emergence of e-commerce, which is rapidly becoming a dominant customer trend. We know we must adapt which is why we are joining together. We will be better positioned, not just to compete with these large disruptors but to service those smaller customers and retailers that need access to both technology solutions and a large terminal network,” Mullen commented in the release. 

APPS Transport Group found itself in a similar situation previously, having signed an agreement in August to be acquired by the largest trucking company in Canada, TFI International (NYSE:TFII). 

In October, Alain Bedard, chief executive officer of TFI International, announced the deal had fallen through citing scrutiny by the Competition Board of Canada.

“We are such a dominant company in Canada, anything with revenue of more than $90 million, we have to sit down with the Competition Bureau in Ottawa,” Bedard explained, adding the process was long and would involve lawyers.

The APPS Transport Group portfolio will be a valuable addition to the Mullen Group’s network, as it provides LTL, intermodal and warehousing space needed to support future e-commerce needs.

The company will operate within Mullen Group’s less-than-truckload segment, generating approximately $90 million in annual revenue.

Following the announcement, Mullen Group’s stock jumped 4.7% on Monday.

One Comment

  1. Stephen Webster

    Any trucking company that had a net profit of over $100,000 in 2020 and bought new equipment or another company should have to pay back all wage assistance if the net profit is over $200,000 or had employees that made over $200,000. The program was designed for companies that needed it only. The same thing with C R B or C E R B if the person made over $50,000 they should have to pay all C R B and or C E R B money.

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Grace Sharkey

Grace Sharkey is a professional in the logistics and transportation industry with experience in journalism, digital content creation and decision-making roles in the third-party logistics space. Prior to joining FreightWaves, Grace led a startup brokerage to more than $80 million in revenue, holding roles of increasing responsibility, including director of sales, vice president of business development and chief strategy officer. She is currently a staff writer, podcast producer and SiriusXM radio host for FreightWaves, a leading provider of news, data and analytics for the logistics industry. She holds a bachelor’s degree in international relations from Michigan State University. You can contact her at [email protected].