PHILADELPHIA, Jan. 11, 2006 (PRIMEZONE) -- Radiant Logistics, Inc. (OTCBB:RLGT) today announced that it has acquired Airgroup Corporation, a Seattle, Washington-based, privately held company that provides a full range of domestic and international freight forwarding services. The transaction was valued at up to $14.0 million, consisting of cash of $9.5 million paid at closing with an additional $4.5 million payable over the next five years in a combination of cash and Company stock based on the future performance of Airgroup.
Founded in 1987, Airgroup services a diversified account base including manufacturers, distributors and retailers using a network of independent carriers and over 100 international agents positioned strategically around the world through its extensive network of 34 exclusive agent offices across North America.
Based on historic financial statements, Airgroup's revenue was $51.5 million for the year ended June 30, 2005, an increase of 19.9% over total transportation revenue of $43.0 million for the year ended June 30 2004. Airgroup will operate as a wholly owned subsidiary of Radiant Logistics.
In connection with the acquisition of Airgroup, the Company also announced that it has obtained a $10.0 million revolving credit facility from Bank of America, N.A. to provide Radiant with $2.5 million towards this acquisition and funding for future acquisitions, working capital and general corporate purposes.
Radiant's Chairman and CEO, Bohn Crain, remarked, "We are proud to announce our acquisition of Airgroup and partnership with Bank of America so early in the new year. With Airgroup as the foundation, we are well positioned with the people, process and technology infrastructure to execute our strategy to build a full-service, technology-driven, global logistics organization. Airgroup has a strong tradition of operational excellence. This commitment to excellence is one of the key reasons we chose Airgroup as our platform company. We look forward to working with Bill Moultrie, Dan Stegmoller, A.E. Daniel and the entire Airgroup team of management and employees across the nation to deliver value for our customers, our employees, our expanding base of business partners and ultimately our shareholders. Add to this operational capability the financial resources available to us through Bank of America, who has the financial strength and global reach to support us as we begin to expand our network, and we believe we are well positioned to capture the opportunity before us."
Bill Moultrie, of Airgroup commented, "We are thrilled about joining Radiant. Radiant provides a unique opportunity as a publicly traded company to leverage the capability of Airgroup to provide tremendous growth potential." Mr. Moultrie will continue as the President and Chief Operating Officer of Airgroup.
About Radiant Logistics (OTCBB:RLGT)
Radiant Logistics (www.radiant-logistics.com) is executing a strategy to build a global transportation and supply chain management company through the strategic acquisition of regional best-of-breed non-asset based transportation and logistics service providers to offer its customers an expanding array of global supply chain services including time definite transportation and distribution solutions and a broad range of value added supply chain management services. For more information about Radiant Logistics, please contact Bohn Crain at (215) 545-2863.
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. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. While it is impossible to identify all of the factors that may cause our actual operating performance, events, trends or plans to differ materially from those set forth in such forward looking statements, such factors include, but are not limited to: (i) our assumption that the post-closing level of operations of Airgroup will remain consistent with or exceed its historic level of operations; (ii) our ability to use Airgroup as a "platform" upon which we can build a profitable global transportation and supply-chain management company; (iii) our ability to identify and secure sufficient financing to complete other acquisitions, as well as those other factors disclosed in our filings with Securities and Exchange Commission and other public documents and press releases which can be found on our web-site (www.radiant-logistics.com). Readers are cautioned not to place undue reliance on our forward-looking statements, as they speak only as of the date made. Such statements are not guarantees of future performance or events and we undertake no obligation to disclose any revision to these forward-looking statement to reflect events or circumstances occurring after the date hereof.