Mullen Group Ltd. (MLLGF), which owns asset-based oilfield services and trucking businesses, recently announced the acquisition of R.S. Harris Transport Ltd, a leading provider of open deck transportation within North America. The terms of the deal have not been disclosed so far.
Following the news release, shares of the company gained 7% to close at $10.95 in Friday’s trading session.
With this buyout, Mullen will gain access to Harris’ wide fleet of 50 company tractors and 165 trailers. Further, the company is set to benefit from Harris’ diverse customer base. Notably, Harris generates annualized revenue of about $25 million.
CEO of Mullen Murray K. Mullen said, “This acquisition reinforces what we have articulated to shareholders for some time – we will always invest in opportunities that strengthen our existing Business Units. Harris has an established name in the Canadian trucking industry with a solid reputation for customer service as well as being a formidable competitor.” (See Mullen stock chart on TipRanks)
Recently, BMO Capital analyst John Gibson reiterated a Buy rating on the stock and raised his price target from $12.96 (C$16) to $13.77 (C$17), which implies upside potential of 25.8% from current levels.
Consensus among analysts is a Strong Buy based on 6 Buys and 2 Holds. The average Mullen price target of $12.20 implies upside potential of 11.4% from current levels.
Mullen scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to outperform market averages. Shares of the company have gained 88.8% over the past year.
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