Mullen Group has broken into the U.S. market with its acquisition of third-party logistics provider QuadExpress.
Mullen purchased the Naperville, Ill.-based company for US$40 million.
“Today’s announcement is significant to our organization for several reasons with the most important being that we just opened the door to future opportunities,” said Murray Mullen, Mullen Group chairman and CEO.
“We already have an extensive network in Canada and will continue to invest where we find great companies to add to our service offerings. However, there are limits to just how much we can grow in the Canadian market. The U.S. market, on the other hand, is a new market for our company, offering tremendous opportunity. There is no doubt the U.S. market is key to the North American supply chain and we need to be there. With this acquisition we gain immediate access to one of the largest markets in the world.”
QuadExpress is a non-asset based 3PL, which owns a proprietary transportation management system called SilverExpress, which is included in the deal. It serves about 1,700 North American customers and works with more than 6,000 transportation companies.
Last year, QuadExpress generated about US$135 million in revenue.
“The QuadExpress business model is precisely the opportunity we have been looking for. They are a 3PL service provider utilizing SilverExpress, a proprietary customer interface technology built by a shipper for shippers,” said Mullen.
“Revenues are generated from providing a combination of traditional 3PL service offerings to customers and from partnering with agents, who have customer relations and utilize the SilverExpress platform to manage their business. his unique business model will allow us to focus on investing in the technology platform, ensuring the business can meet the ever-increasing demands associated with the emergence of digital integration. The agents get access to a world class technology platform allowing them to focus on the customer relationship. And the last piece of the puzzle is the carrier network. QuadExpress has over 6,000 providers which will only grow and expand with our involvement.”
The senior team of QuadExpress, will remain on and continue to oversee the business, Mullen announced.