RADIANT LOGISTICS ACQUIRES STRATEGIC OPERATING PARTNER FOCUS LOGISTICS, INC.

Rhea-AI Summary

Radiant Logistics, Inc. (NYSE American: RLGT) has acquired Focus Logistics, Inc., a Michigan-based company operating under Radiant's Service By Air brand since 2006. The transaction is structured with a portion of the purchase price based on future performance. Focus, founded in 2003, provides domestic and international freight forwarding services for various industries.

Post-acquisition, Focus will transition to the Radiant brand and merge with existing Detroit operations under Cliff Kisielewski's leadership as General Manager. Terrie Evans, co-founder, will retire after 30 years in the transportation industry. This acquisition aligns with Radiant's strategy of partnering with logistics entrepreneurs and providing them with a built-in exit strategy.

Positive

• Expansion of Radiant's operations in the Detroit area
• Acquisition of an established freight forwarding business with expertise in marine, aerospace, brand management, and trade show industries
• Retention of key leadership with Cliff Kisielewski assuming the role of General Manager
• Structured deal with performance-based payments, potentially reducing upfront costs

Negative

• None.

News Market Reaction

-3.96%

1 alert

-3.96% News Effect

On the day this news was published, RLGT declined 3.96%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

RENTON, Wash., Oct. 2, 2024 /PRNewswire/ -- Radiant Logistics, Inc. (NYSE American: RLGT), a leading provider of technology-enabled global transportation and value added logistics solutions, today announced it has acquired the operations Focus Logistics, Inc. ("Focus"), a Michigan based, privately held company with operations in Romulus, Michigan that has operated under the Company's Service By Air brand since 2006. 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 operations.

Originally founded in 2003 and operated by Terrie Evans and Cliff Kisielewski, Focus provides both domestic and international freight forwarding services in support of the marine, aerospace, brand management and trade show industries. On a post-closing basis, Focus is expected to transition to the Radiant brand and will combine with existing company owned operations in the Detroit area and operate under the leadership of Cliff Kisielewski who will assume the role of General Manager for the newly combined organization. Terrie Evans will be transitioning into a well-deserved retirement after over 30 years of service in the transportation industry.

Cliff Kisielewski of Focus commented, "Through years of dedicated service, customers have always remained our top priority whether they were here in the United States or abroad and this philosophy has been key to our success. Since Radiant acquired Service By Air back in 2015 they have proved to be a great partner, providing us a much larger platform to support and grow our business. It has been rewarding to be a part of the building momentum of the Radiant network over the years and we are excited to now transition the business in a way that meets our own personal goals while also ensuring the continued success of our customers and employees."

"The Focus transaction represents yet another great example of our work with our strategic operating partners," remarked Radiant's Founder and CEO, Bohn Crain. "We launched Radiant in 2006 with the goal of partnering with logistics entrepreneurs who would benefit from our unique value proposition and the built-in exit strategy available to the entrepreneurs participating in our network. We are pleased to be able to support Terrie and Cliff in this transition and are excited for this next chapter with Cliff leading our combined operations in Detroit."

About Radiant Logistics (NYSE American: RLGT)

Radiant Logistics, Inc. (www.radiantdelivers.com) is a publicly traded third party logistics company providing technology-enabled global transportation and value added logistics solutions primarily to customers based in the United States and Canada. Through its comprehensive service offering, Radiant provides domestic and international freight forwarding along with truck and rail brokerage services to a diversified account base including manufacturers, distributors and retailers which it supports from an extensive network of Radiant and agent-owned offices throughout North America and other key markets around the world. Radiant's value-added logistics services include warehouse and distribution, customs brokerage, order fulfillment, inventory management and technology services.

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. All statements other than statements of historical fact contained herein, including, without limitation, statements regarding our future financial position, business strategy, budgets, projected revenues and costs, and plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expects," "intends," "plans," "projects," "estimates," "anticipates," or "believes" or the negative thereof or any variation thereon or similar terminology or expressions. 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 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. Important factors that could cause our actual results to differ from our expectations, include but are not limited to, the performance of our historic business at levels consistent with recent trends and reflective of the synergies we believe will be available to us as a result of our recent acquisitions; and those risk factors that apply to our operations as disclosed in Item 1A of our Report on Form 10-K for the year ended June 30, 2024 and other filings with the Securities and Exchange Commission and other public documents and press releases which can be found on our web-site (www.radiantdelivers.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 statements to reflect events or circumstances occurring after the date hereof.

Investor Contact: Radiant Logistics, Inc Todd Macomber (425) 943-4541 investors@radiantdelivers.com

Media Contact: Radiant Logistics, Inc. JP Deenihan (425) 462-1094 communications@radiantdelivers.com

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SOURCE Radiant Logistics, Inc.

FAQ

What company did Radiant Logistics (RLGT) acquire in October 2024?

Radiant Logistics (RLGT) acquired Focus Logistics, Inc., a Michigan-based company that had been operating under Radiant's Service By Air brand since 2006.

How will the acquisition of Focus Logistics affect Radiant's operations in Detroit?

The acquisition will lead to Focus Logistics transitioning to the Radiant brand and combining with Radiant's existing Detroit operations, expanding the company's presence in the area.

Who will lead the combined Radiant operations in Detroit after the Focus Logistics acquisition?

Cliff Kisielewski, from Focus Logistics, will assume the role of General Manager for the newly combined organization in Detroit.

What industries does Focus Logistics serve that will now benefit Radiant (RLGT)?

Focus Logistics provides freight forwarding services for the marine, aerospace, brand management, and trade show industries, which will now be part of Radiant's service offerings.