Mullen Group Ltd. has acquired the Bandstra Group of Companies, including Bandstra Transportation Systems Ltd. and Babine Truck & Equipment Ltd.
A definitive share purchase agreement was signed, and the acquisition closed on April 16, 2021.
Bandstra Transportation will operate within Mullen Group's Logistics & Warehousing segment and Babine will operate within the Specialized & Industrial Services segment. Both are expected to generate returns consistent with their respective operating segment. Mullen Group funded this acquisition from existing cash.
The Bandstra Group was established in 1955 and has a long history of servicing customers in British Columbia through its two primary operating businesses, Bandstra Transportation and Babine, employing an experienced and dedicated workforce of over 400 British Columbia residents.
Bandstra Transportation, based in Smithers, B.C., provides a wide range of transportation and logistics services to communities in northern British Columbia including: truckload; general freight; less-than-truckload; and specialized hauling services. Customers are serviced through a network of eight owned and three leased facilities. They operate a fleet of approximately 180 power units, 360 trailers and 70 pieces of support equipment, generating approximately $65 million in annualized revenue.
Babine is an Original Equipment Manufacturer (OEM) dealership that operates from three locations in British Columbia: Smithers, Prince George and Prince Rupert. In addition to providing sales of OEM trucks and trailers, Babine provides equipment and maintenance to Bandstra Transportation as well as parts and service work that supports the natural resources, energy and transportation industries in northern British Columbia. Babine generates revenue of approximately $20 million annually.