BELLEVUE, Wash., June 1, 2017 /PRNewswire/ -- 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 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.
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SOURCE Radiant Logistics, Inc.