TD's Views on the Closing Event
Mullen announced the acquisition of Tri Point Intermodal Services Inc. (Tri Point) as
well as the closing of the previously announced APPS Transport Group Inc. (APPS)
acquisition.
Impact: SLIGHTLY POSITIVE
Details: Mullen announced that it has acquired Tri Point, an intermodal service
provider and container storage company, established in 2005, with operations in the
Greater Toronto Area and southern Ontario. Tri Point will operate as a standalone
company within the Logistics & Warehousing segment and will continue to be led by
the founder Michael Lamanna. Aside from expectations of annual revenues of ~$10
million, no other financial details were provided. Mullen also announced that it has
closed its previously announced acquisition of APPS.
TD View: Although a relatively small acquisition, we believe that Tri Point further
diversifies Mullen outside of western Canada and the energy industry, a long-term
strategic objective of management. More importantly, Mullen Group continues to be
an acquisitive company in 2021, having completed the acquisitions of APPS ( full
report), Bandstra Group ( full report), International Warehousing & Distribution ( full
report), and Tri Point.
No Change in Our Estimates: Given the likely size of the acquisition and lack of
transaction metrics, we are not making any changes to our estimates at this time.
In light of several acquisitions, our unchanged 2021 EBITDAS estimate of $221.1
million is slightly above management’s official guidance range of between $200
million and $220 million.