Radiant Logistics Expands Mid-Atlantic Operations Launches Company-Owned Facility in Philadelphia, PA; Acquires Select Customers of Phoenix Cartage and Airfreight
BELLEVUE, Wash., March 3, 2014 /PRNewswire/ -- Radiant Logistics, Inc. (NYSE MKT: RLGT), a domestic and international logistics services company, today announced it has opened company-owned operations in Philadelphia, PA and acquired select customer relationships from Phoenix Cartage and Airfreight, LLC. ("PCA"), a Philadelphia, PA based privately held company that provides a full range of domestic and international transportation and logistics services across North America. The transaction was structured as a purchase of assets using cash and stock payments at closing along with an earn-out structure that may provide for additional payments based on the future financial performance of the acquired customers.
Founded in 2009, PCA provides customized, time-critical domestic and international logistics solutions to a diversified account base that includes customers in the life sciences, pharmaceutical, store fixture, retail and consumer goods industries from its mid-Atlantic gateway location near the Philadelphia International Airport (PHL). Prior to the acquisition, PCA operated as part of a competing national transportation group.
"We are proud to announce our partnership with Philippe Gabay," remarked Radiant's Founder and CEO, Bohn Crain. "We have purposefully positioned ourselves to bring value to logistics entrepreneurs like Philippe and we are very excited to have him choose us as his partner. We believe the transaction is representative of the broader pipeline of opportunities available to us in the marketplace and is further evidence of our ability to attract large individual contributors from competing networks who can benefit from the Radiant platform similar to our Laredo transaction (December 2011) and our NY-JFK transaction (February 2012). In addition, we have tapped Michael Alsop as the station manager for our new Philadelphia location and are very excited about the new team we are building under his leadership."
Crain continued: "With the benefit of our $21.0 million redeemable preferred equity offing we completed in December of 2013, we enjoy significant access to low-cost capital via our $30.0 million senior credit facility with Bank of America to continue to execute our acquisition strategy: cultivating an acquisition pipeline with a focus on converting existing agent stations to company-owned stores, acquiring agent stations participating in competing networks and ultimately acquiring other competing networks should the opportunity present itself."
Philippe Gabay, of PAC commented, "We are thrilled about joining Radiant. Radiant has a real appreciation for the needs of the local owner/entrepreneur and is building a world-class logistics enterprise. I look forward to the opportunity to assume a leadership role in a larger organization and leveraging the capabilities of the Radiant network to bring additional value to our customers. Radiant's purchasing power, technology platform, international capabilities, proprietary dedicated line-haul network and status as a public company are all compelling differentiators for Radiant in the marketplace." Mr. Gabay will be based out of the Company's Somerset, New Jersey location and assume broader responsibilities as the Company's VP of Business Development for the Mid-Atlantic region.
About Radiant Logistics (NYSE MKT: RLGT)
Radiant Logistics, Inc. (www.radiantdelivers.com) is a non-asset based transportation and logistics company providing domestic and international freight forwarding services and an expanding array of value-added solutions, including customs and property brokerage, order fulfillment, inventory management and warehousing. The company operates through a network of company-owned and independent agent offices across North America under the Radiant, Airgroup, Adcom, DBA and On Time network brands servicing a diversified account base including manufacturers, distributors and retailers using a network of independent carriers and international agents positioned strategically around the world.
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to trends in the domestic and global economy, our ability to attract new and retain existing agency relationships, acquisitions and integration of acquired entities, availability of capital to support our acquisition strategy, our ability to maintain and improve back office infrastructure and transportation and accounting information systems in a manner sufficient to service our revenues and network of operating locations, outcomes of legal proceedings, competition, management of growth, potential fluctuations in operating results, and government regulation. More information about factors that potentially could affect Radiant Logistics, Inc. financial results is included Radiant Logistics, Inc.'s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.
SOURCE Radiant Logistics, Inc.