Record revenues and profits are helping Aldersyde, Alberta-based Mullen Transportation expand its trucking operations, including the acquisition of Tenold Transportation, a British Columbia-based flatbed truckload and LTL carrier that operates in Canada and the U.S.
Murray Mullen, chairman & co-CEO, said buying privately held Tenold – which generated $40 million in revenues last year with a fleet of 125 contracted owner-operators – will complement his company’s heavy-haul truckload business.
“[Tenold] has been in business for over 36 years and they operate one of the best trucking companies in western Canada, with operating margins consistent to that of other best-in-class trucking firms,” he said. “As such, we expect the transaction will be accretive to Mullen’s earnings and complement our existing trucking business, expanding the markets we serve.”
Along with transporting machinery, equipment, pipe and bulk materials, Tenold also provides logistics, warehousing and distribution, and other non-transportation services, such as cable cutting and reel services, making it a good fit with Mullen’s oilfield-oriented operations.
Mullen generated consolidated revenues of $470.9 million last year compared to $421.5 million for, with net income rising 42.2% to $46.5 million, up sharply from $32.4 million in 2003. Revenue in the trucking segment increased by $4.2 million as a result of strong demand for freight services, with operating income from trucking increasing 26.5% in the fourth quarter alone last year.