Mullen Group has announced it has reached an agreement to acquire APPS Transport Group, including APPS Cartage and APPS Cargo Terminals.
APPS had reached an agreement last year to sell to TFI International but the acquisition was terminated following scrutiny by the Competition Board of Canada.
Mullen says it has signed a letter of intent to take over the company and has initiated due diligence and the execution of a purchase and sale agreement. It expects to close the deal on June 1.
Murray Mullen, chairman and CEO of Mullen Group, said APPS will operate as a standalone entity and that its founder Rob McDonald will stay on with the company.
“Rob and I agreed that there is an excellent business and cultural fit between our respective organizations,” Mullen said.
“Consumer demand is expected to increase as soon as the governments reopen the economy. In addition, we have already seen how the supply chain has been disrupted by online shopping. Massive companies, such as Amazon, are capitalizing on the emergence of e-commerce, which is rapidly becoming a dominant consumer 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 disrupters but to service those smaller customers and retailers that need access to both technology solutions and a large terminal network, which is our access point to customers across the Canadian marketplace.”
APPS was founded in 1985 and provides LTL and TL services, as well as intermodal and some warehousing. It has five locations in Western Canada and is based in Mississauga, Ont. It generates about $90 million in annual revenue and employs 300 people.