Radiant Logistics to Acquire Wheels Group
Radiant Logistics Inc. said it will acquire Canadian third party logistics firm Wheels Group for C$95 million ($77.14million).
Wheels group generated C$368 million in revenue for the 12 months ended Sept. 30, with C$185 from U.S. operations and C$187 million from Canada, according to Radiant.
The deal is expected to close early in the second quarter and is subject to regulatory clearance, court and shareholder approval. The acquisition was unanimously approved by the Wheels Group board of directors.
"We have been looking for a truck brokerage and intermodal platform to complement our forwarding operations for some time and we expect this transaction to be accretive to our earnings (as adjusted for amortization of acquired intangibles) within the near term and accelerate our growth,” Bohn Crain, Founder and CEO of Radiant, said in a statement.
Preliminary estimates for the revenues of the combined companies are projected at USD $750 million.
Wheels Group provides intermodal and truck brokerage services as well as warehouse and distribution services.
“We believe the acquisition further enhances the value proposition we offer our existing operating partners who will now have the opportunity to access a broad range of rail and truck brokerage capabilities while further differentiating us in the marketplace as we seek to attract additional operators to our platform,” Crain said in a statement.
Crain will continue as chairman and CEO on the combined companies. Tim Boyce, president of Wheels’ U.S. operations, will continue as the chief operating officer of the combined companies' North American brokerage operations; and Peter Jamieson, president, Wheels Canada, will continue as senior vice president and country manager for Canada.
