Mullen Group has entered the customs brokerage business, having closed its acquisition of Cole Group of Companies.
The deal includes Cole Group, Cole International, Abco International Freight and all other related entities. The business provides the full spectrum of logistics services, specializing in customer brokerage, freight forwarding, and trade consulting.
It operates out of 43 locations and employs more than 700 people.
Mullen Group says the company will add about $300 million in annual revenue. Mullen bought the company for $190 million, but obtained $10 million in office real estate and $29 million in required working capital.
Among the reasons Mullen was drawn to the deal are: expansion of its non-asset based logistics and final mile offerings; synergies across business units, presenting cross-selling opportunities; an ability to help customers navigate market complexities in an increasingly complicated global trade market; an attractive financial profile generating accretive cash flow; and a foundation for long-term growth.
In its most recent earnings call with analysts, senior executive officer Murray Mullen said of the deal, “We’ve always liked the customs brokerage business. Most of our business, we have facilitates the movement of freight. We move freight, that’s what our trucks do. By investing in Cole Group, we’re now helping with the transaction of any cross-border importation or export of goods.”
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