Mullen Group to acquire customs broker Willson International

Mullen Group (MLLGF) said Monday it agreed to acquire Willson International and its related businesses, expanding its customs brokerage operations in Canada and the United States. The transaction is expected to close in the fourth quarter.

Willson, a customs brokerage and trade compliance company with more than a century of operating history, employs more than 330 people across North America. Most are certified customs professionals who help businesses navigate import and export regulations. The acquisition will complement Mullen Group's (MLLGF) existing customs brokerage operations through Cole International.

For investors, the acquisition offers Mullen Group (MLLGF) an opportunity to diversify its revenue with a business that requires relatively little capital investment and generates cash flow. Customs brokerage services remain necessary even when freight volumes fluctuate, potentially providing a more stable source of earnings during periods of economic uncertainty or changing trade policies.

Willson is expected to contribute approximately $80 million in annual revenue, with operating margins generally in line with Mullen Group's Logistics & Warehousing segment. The company anticipates positive free cash flow from the business, with ongoing capital expenditures largely limited to technology investments.

Mullen Group plans to retain Willson's existing management team, led by Jim McKinnon, and operate the company as a standalone business. Its Canadian operations will be included in Mullen's Logistics & Warehousing segment, while its U.S. operations will fall under the US & International segment.

Murray Mullen, the company's chair and senior executive officer, said the acquisition would expand its cross-border capabilities while preserving Willson's existing customer relationships and operating structure. President and Senior Operating Officer Richard Maloney described the transaction as part of Mullen Group's strategy of investing in established businesses that generate cash and provide essential supply chain services.

The acquisition will be financed using Mullen Group's existing cash resources. The company did not disclose the purchase price or provide an estimate of the transaction's impact on earnings per share.