RADIANT LOGISTICS ACQUIRES TCB TRANSPORTATION

Rhea-AI Summary

Radiant Logistics (NYSE American: RLGT) has acquired TCB Transportation Associates, a St Louis-based intermodal marketing company specializing in 40 and 53-foot container movements across North America. The acquisition was executed through Radiant's subsidiary Radiant Road and Rail, with part of the purchase price tied to future performance.

Founded in 1999, TCB operates as a door-to-door service provider, working with steamship lines, Class I railroads, and drayage networks. The company serves multiple sectors including forestry products, food & beverage, metals & mining, and chemicals. TCB will continue under founder Jerry Kausch Jr.'s leadership before transitioning to the Radiant brand in 2025.

Positive

• Strategic expansion of intermodal capabilities and brokerage platform
• Acquisition includes established customer base across diverse industries
• Performance-based purchase structure reduces upfront capital requirements
• Integration with Radiant's technology platform offers cross-selling opportunities

Negative

• Future contingent payments may increase total acquisition cost
• Integration and rebranding costs expected in 2025

News Market Reaction – RLGT

+0.27%

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+0.27% News Effect

On the day this news was published, RLGT gained 0.27%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Strengthens Brokerage Platform with Enhanced Intermodal Capabilities

RENTON, Wash., Dec. 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 assets and operations of TCB Transportation Associates, LLC d/b/a TCB Transportation ("TCB"), a St Louis, Missouri-based, privately held intermodal marketing company specializing in the movement of 40 and 53-foot containers across North America. The Company acquired TCB through its wholly-owned subsidiary Radiant Road and Rail, Inc. and 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 1999, TCB operates as a "one-stop shop", offering true door-to-door service for its shipper customers by leveraging its relationships with steamship lines, Class I railroads and its extensive drayage network. The company is recognized as one of the top 40-foot service providers in the market, serving multiple end-markets, including forestry products, food & beverage, metals & mining and chemicals. On a post-closing basis, TCB will continue under the leadership of founder Jerry Kausch, Jr. with the expectation that the company will ultimately transition to operate under the Radiant brand in 2025. Post-closing, Jerry Kausch, Jr. will report to Christopher Brach, SVP and General Manager of Radiant Road & Rail, Inc.

Jerry Kausch, Jr. of TCB commented, "Through years of dedicated service, our customers have always remained our top priority. We were looking for a long-term partner with that same passion for servicing the customer and a shared vision to further advance our business, while also providing an opportunity for growth for our employees. We found that partner in Radiant, and I am excited to leverage our own strengths along with the broader capabilities of the Radiant network to bring additional value to our customers."

"We are proud to announce our partnership with Jerry, Kent Fensom, Dan Byington and the entire TCB team," remarked Radiant's Founder and CEO, Bohn Crain. "We have been patiently looking for the right transaction to accelerate the growth of our bi-modal brokerage platform and we found it in our partnership with Jerry and TCB. We believe there is a tremendous opportunity to support TCB's account base with our robust technology platform while introducing them to our over-the-road brokerage, international forwarding and value-added service offerings."

About Radiant Road & Rail

Radiant Road & Rail, Inc. (rrs@radiantdelivers.com) is a wholly owned subsidiary of Radiant Logistics, Inc. and serves as the platform for the Radiant Network's U.S intermodal and over-the-road brokerage service offering. Originally founded in 1938 as Clipper Exxpress, the company was a pioneering intermodal service provider, offering "piggyback" rail transportation by contracting flat space on rail cars to transport semi-trailers across the continent, thereby eliminating the need for a tractor with every shipment. Over its 85-year history, Radiant Road & Rail has evolved to become a leader in intermodal, over-the-road and temperature-controlled transportation services leveraging decades of mode optimization experience to offer rail as a valuable, eco-friendly mode of on-time, long distance transportation throughout the United States, Canada, and Mexico.

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.

 

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SOURCE Radiant Logistics, Inc.

FAQ

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

Radiant Logistics acquired TCB Transportation Associates, a St Louis-based intermodal marketing company specializing in container movements across North America.

When will TCB Transportation transition to the Radiant brand?

TCB Transportation is expected to transition to operate under the Radiant brand in 2025.

What markets does TCB Transportation serve?

TCB Transportation serves multiple end-markets including forestry products, food & beverage, metals & mining, and chemicals.

How is the acquisition of TCB Transportation structured by RLGT?

The acquisition is structured with a portion of the purchase price payable in subsequent periods based on the future performance of the acquired operations.