RADIANT LOGISTICS ACQUIRES STRATEGIC OPERATING PARTNER VIKING WORLDWIDE, INC.

Rhea-AI Summary

Radiant Logistics, Inc. (RLGT) acquires Viking Worldwide, Inc., a Minnesota-based company with operations in Minneapolis and Houston. The transaction involves a portion of the purchase price based on future performance. Viking specializes in high-tech, brand management, life sciences, and trade show industries. The acquisition aims to strengthen Radiant's network and enhance customer service.

Market Research Analyst

The acquisition of Viking Worldwide by Radiant Logistics represents a strategic move aimed at consolidating their market position within the logistics industry. By integrating Viking's operations, Radiant not only expands its geographical reach but also diversifies its service offerings, particularly in specialized sectors like high-tech and life-sciences. The transaction follows a performance-based payout structure, which aligns with industry practices to mitigate upfront costs and risk associated with mergers and acquisitions.

From a market perspective, this acquisition could signal Radiant's commitment to growth and competitive positioning. It is essential to consider the potential for increased market share and the enhancement of the company's service portfolio. However, the success of this integration will hinge on the seamless merging of Viking's operations and maintaining the strong customer relationships that Viking has established.

Financial Analyst

Financially, the acquisition's structure, with payments based on future performance, suggests a focus on long-term value creation. This earn-out mechanism can incentivize the Viking team to continue performing at high levels, ensuring a smoother transition and integration process. Investors should monitor the subsequent financial statements to assess the impact of the acquisition on Radiant's revenue growth and profitability.

It's important to analyze how this acquisition will affect Radiant's balance sheet, considering potential goodwill and how the deferred payments will be treated. The financial health of the combined entity and the realization of expected synergies will be critical in determining the acquisition's success from an investment standpoint.

Logistics Industry Expert

The logistics sector is increasingly driven by technology and the ability to provide end-to-end solutions. Radiant's acquisition of Viking, a company with a strong foothold in high-demand industries, positions them well to leverage Viking's expertise and enhance their technology-enabled logistics solutions.

Strategically, the move allows Radiant to bolster its presence in the Midwest and South, which are key logistics hubs in the United States. The integration of Viking's operations under the Radiant brand will require careful management to preserve industry relationships and customer trust. As Viking transitions to the Radiant brand, the company must ensure that the operational efficiencies and customer service standards are upheld to retain Viking's existing client base and attract new business.

RENTON, Wash., April 3, 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 of Viking Worldwide, Inc. ("Viking"), a Minnesota based, privately held company with operations in both Minneapolis, Minnesota and Houston, Texas that has operated under the Company's Service By Air brand since 2012. 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.

Founded in 1993, Viking services a diversified account base specializing in the high-tech, brand management, life-sciences, and trade show industries from its strategically located mid-west gateway location in metro Minneapolis/St. Paul. On a post-closing basis, Viking will continue to operate under the Service By Air brand and is expected to transition to the Radiant brand over the course of 2024 as Viking's Minneapolis operations combine with existing Company-owned operations in the area. 

Mike Rothmeyer of Viking commented, "Through years of dedicated service, our entire team has developed some very strong relationships with our customers, vendors and associates around the globe. Our 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 I am excited to now transition the business in a way that meets my own personal goals while also ensuring the continued success of our customers and employees. We look forward to flying the Radiant flag in both Minneapolis and Houston." Mr. Rothmeyer will continue as the Regional Director for the acquired operations in both Minneapolis and Houston.

"The Viking transaction represents 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 Mike in this transition and are excited for this next chapter with Mike and his entire team."

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, 2023 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.

 

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SOURCE Radiant Logistics, Inc.

FAQ

What company did Radiant Logistics, Inc. (RLGT) acquire?

Radiant Logistics, Inc. acquired Viking Worldwide, Inc.

What industries does Viking specialize in?

Viking specializes in high-tech, brand management, life sciences, and trade show industries.

Who will continue as the Regional Director for the acquired operations?

Mike Rothmeyer will continue as the Regional Director for the acquired operations in both Minneapolis and Houston.

When was Radiant Logistics, Inc. (RLGT) founded?

Radiant Logistics, Inc. was founded in 2006.

What is the expected transition plan for Viking operations?

Viking will continue to operate under the Service By Air brand and is expected to transition to the Radiant brand over the course of 2024.