MULN - Mullen Automotive acquires B. & R. Eckel's Transport

2023-05-01 06:42:07 ET

Mullen Automotive ( NASDAQ: MULN ) announced that it has entered into a formal share purchase agreement to acquire B. & R. Eckel's Transport Ltd. for an undisclosed amount.  The acquisition is scheduled to close today.

B. & R,. Eckel's Transport is noted to have a long history of servicing customers in the greater Northeastern Alberta  region through less-than-truckload, full truckload, and general oilfield hauling services.

B&R operates a fleet of 400 power units and over 950 trailers that generate annualized revenue of $85.0 million. Mullen ( MULN ) expects that B&R will eventually generate financial results that are in line with Mullen Group's overall operating margins.

The acquisition of B&R is called a great example of Mullen Group's precision-based acquisition strategy and the timing is called good.

"We have seen commodity prices increase and hold in a range that has attracted capital to NEAB, including applications by big energy players looking to extend their production in the Cold Lake region along with newly sanctioned projects – all of which require transportation and logistics services. Secondly, B&R's diverse service offerings compliment Mullen Group's operating segments, very well."

The operating results of B&R will be split between the LTL segment and the Specialized and Industrial Services segment.  Mullen Group ( MULN ) plans to funding the transaction from existing cash and credit lines.

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