RENTON, Wash. - Radiant Logistics (NYSE:RLGT), Inc. (NYSE American: RLGT), a global transportation and logistics solutions provider, has announced the acquisition of Focus Logistics, Inc., a Michigan-based freight forwarding company. The acquisition, which was structured with a performance-based payment plan, will see Focus Logistics integrate into Radiant's operations and rebrand under the Radiant name.
Focus Logistics has been a part of Radiant's network since 2006, operating under the Service By Air brand. The company, established in 2003 by Terrie Evans and Cliff Kisielewski, specializes in services for the marine, aerospace, brand management, and trade show industries. As part of the acquisition, Cliff Kisielewski will become General Manager of the combined Detroit operations, while Terrie Evans is set to retire after three decades in the industry.
Cliff Kisielewski expressed satisfaction with the company's growth under Radiant's partnership and the opportunity to continue serving customers and supporting employees. Bohn Crain, CEO of Radiant Logistics, highlighted the acquisition as an example of the company's strategy to partner with logistics entrepreneurs, offering them an exit strategy while expanding Radiant's operational footprint.
Radiant Logistics, founded in 2006, offers a range of logistics services including domestic and international freight forwarding, truck and rail brokerage, and value-added logistics services like warehouse distribution and customs brokerage. The company supports a diverse customer base across North America and globally.
This acquisition is part of Radiant's ongoing expansion strategy and is expected to enhance its service offerings in the Detroit area. The financial terms and the expected impact on Radiant's financial performance have not been disclosed. The information in this report is based on a press release statement.
In other recent news, Radiant Logistics, Inc. reported a significant increase in net income for the fourth fiscal quarter ending June 30, 2024. The company's Q4 net income soared over 750% to $4.78 million, while maintaining a stable revenue of $206 million. However, the full year's net income saw a decrease of 62.7% to $7.69 million, with revenue at $802.5 million.
Radiant Logistics also completed five acquisitions as part of its strategic growth initiatives. Despite a year-over-year decrease in adjusted EBITDA for Q4 and the full year, the company maintains a strong balance sheet with $25 million in cash and no draws on a $200 million credit facility. These are among the recent developments for the company.
The management team expressed cautious optimism for market recovery and plans for continued investment in technology and network expansion. They expect the current performance to serve as a stable run rate moving forward and remain active in the acquisition market. Despite these positive moves, the company did not anticipate any significant catalysts for growth in the near term.
InvestingPro Insights
Radiant Logistics' acquisition of Focus Logistics aligns with the company's growth strategy, as reflected in recent financial data and analyst projections. According to InvestingPro data, Radiant Logistics has shown a strong return over the last three months, with a 16.67% price total return. This positive momentum could be partly attributed to strategic moves like the Focus Logistics acquisition.
Despite a revenue decline of 26.07% in the last twelve months, InvestingPro Tips suggest that net income is expected to grow this year, and analysts predict the company will be profitable. This outlook supports Radiant's decision to expand its operational footprint through acquisitions.
The company's financial health appears stable, with InvestingPro Tips indicating that liquid assets exceed short-term obligations and the company operates with a moderate level of debt. This financial position likely enables Radiant to pursue acquisitions like Focus Logistics without overextending itself.
For investors seeking more comprehensive analysis, InvestingPro offers 7 additional tips for Radiant Logistics, providing deeper insights into the company's financial position and growth prospects.
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