Mullen Completes RDK Transportation Purchase
Mullen Group completed the purchase of RDK Transportation Co., an open deck and specialized bulk truckload carrier based in Saskatoon, Saskatchewan, the company announced Sept. 5.
RDK provides freight-hauling service throughout Canada and the continental United States using mostly independent owner-operators and a fleet consisting of 80 power units and 107 trailers, including step decks, double drops, removable goose necks and bulk trailers.
The company will continue as an independent business unit in Mullen Group’s trucking/logistics business segment and Rod Friesen, one of RDK’s former owners, will serve as the business unit’s leader, according to Murray Mullen, chairman and CEO of Mullen Group.
Mullen said the transaction will contribute more than C$20 million in annualized revenue and be immediately accretive to earnings of Mullen Group.
Based in Okotoks, Alberta, Mullen Group ranks No. 58 on Transport Topics Top 100 list of the largest for-hire carriers in North America. It generated revenue of $520.3 million in U.S. dollars in 2016 from a variety of truckload and less-than-truckload operations. Mullen Trucking and Payne Transportation offer flatbed/heavy specialized hauling in addition to dry van truckload and LTL services and Cascade Carriers is a dry bulk transportation specialist.
More acquisitions in trucking! Mullen Group bought RDK Transportation in @cityofsaskatoon ! Join the M&A tidalwave https://t.co/EtQ0gMLK9J pic.twitter.com/yTRkyJEk1s — Left Lane Associates (@LeftLaneAssoc) September 6, 2017
“RDK is a first-class trucking company that will fit very well within our corporate culture and extend our deck services into Saskatchewan,” Murray Mullen, chairman and CEO, said in a statement. “We expect that RDK will immediately benefit by leveraging our network to provide more delivery options to their customers. As well, RDK will have access to our systems and buying power that will help RDK better manage their cost structure.”
Mullen noted that RDK generates profit margins that are in line with other non-asset-based business units in the company and once synergies are realized those margins will expand.
Besides trucking and logistics, Mullen Group provides oil-field services and the company is the largest provider of transportation services to the Canadian oil and gas industry.
In its most recent financial statement, Mullen Group reported a 10.8% jump in total revenue in the second quarter of 2017 with both trucking and logistics and oil-field services enjoying strong growth.
Mullen Group’s trucking and logistics reported revenue of C$183.2 million in the three months ended June 30, up 8.2% from C$169.3 million in the same period a year ago. Revenue in the oil-field services segment increased 14.2% to C$90.8 million from C$79.5 million over a similar period.
“It appears that the economic conditions have improved measurably to the point that there is now a healthy rebound in the economy, both nationally as well as in Alberta,” Mullen said in commenting on the company’s earnings results. “There is definitely more industry optimism today than last year.”
