BELLEVUE, WA June 1, 2017 – Radiant Logistics, Inc. (NYSE MKT: RLGT), a third-party logistics and multimodal transportation services company, today announced it has completed the acquisition of the assets of its strategic operating partner Dedicated Logistics Technologies (“Dedicated”), a privately held company that has historically operated under the Company’s Service By Air brand in Newark, New Jersey and Los Angeles, California.
The Company structured the transaction similar to its previous transactions with a portion of the expected purchase price payable in subsequent periods based on the future performance of the acquired operation.
On a post-closing basis, Dedicated is expected to transition to the Radiant brand and will combine with existing company owned operations in Newark, New Jersey while maintaining separate facilities in Los Angeles, California. The combination is also expected to provide incremental cost synergies associated with the elimination of redundant facilities in New Jersey. Ken Fry will assume the role of General Manager for the newly combined organization that is expected to generate approximately $28.0 million per year in revenue. Alan Brown and David Argen will also continue in leadership roles of the newly combined organization with Brown serving as Vice President of Sales and Argen serving as Vice President of Operations. Angelo Nunez, the incumbent manager of Radiant’s Newark operation, will transition to a newly created role as Director of SAP Deployment to manage the roll-out of the Company’s new industry leading transportation management system that the Company will begin to deploy over the second half of this year.
Ken Fry of Dedicated commented, “We were very happy when Radiant acquired Service By Air back in 2015 as we knew that we were joining an organization that would provide an environment that allowed us to build our business, share in the value creation opportunity as shareholders and give us the ability to transition our business in a way that met our own personal goals while ensuring that the interests of our customers and employees were taken into consideration. Radiant has a real appreciation for the needs for the local owner/entrepreneur and a clear and achievable plan for building a world-class logistics organization. I believe their value proposition will continue to attract and bring value to a great number of logistics entrepreneurs going forward and I am excited to watch and be a part of the building momentum of the Radiant network.”
“The Dedicated transaction and our long-standing partnership with Ken, Alan and David represent another significant milestone for Radiant Logistics,” remarked Radiant's Founder and CEO, Bohn Crain. “We launched Radiant in January of 2006 with the goal of bringing value to logistics entrepreneurs like Ken, Alan and David who would benefit from our unique value proposition with the immediate opportunity to become shareholders and share in the value that they were helping to create and the longer-term opportunity to take advantage of the built-in exit strategy available to the entrepreneurs participating in our network. Even before the SBA transaction, they have participated as shareholders and as one of the larger strategic operating partners in our network. We are very proud to be able to support them in this transaction and help them reach their own individual goals.”
Crain continued: “We believe that the Dedicated transaction is also indicative of the broader opportunity available to us in the marketplace and that there will be more entrepreneurs, both internal and external to our existing network, that will look to join our ranks. This remains a very exciting time in the evolution of Radiant. Our value proposition continues to gain traction within the forwarding community and we remain confident that our growth strategy will continue to bring value to our operating partners, shareholders and the end customers that we serve.”
About Radiant Logistics (NYSE MKT: RLGT)
Radiant Logistics, Inc. (www.radiantdelivers.com) is a third-party logistics and multimodal transportation services delivering advanced supply chain solutions through a network of company-owned and strategic operating partner locations across North America. Through its comprehensive service offering, Radiant provides domestic and international freight forwarding services, truck and rail brokerage services and other value-added supply chain management services, including customs brokerage and materials management and distribution solutions to a diversified account base including manufacturers, distributors and retailers using a network of independent carriers and international agents positioned strategically around the world.
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding future operating performance, events, trends and plans. Such statements may include, without limitation, statements with respect to the Company's plans and objectives, projections, expectations and intentions. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained in the Company's filings with the Securities and Exchange Commission ("SEC"), copies of which are available from the SEC or may be obtained upon request from the Company.