Radiant Logistics and NFI Make Canadian Purchases
The new year began with two acquisitions from U.S. third-party logistics providers looking to increase their business in Canada.
Radiant Logistics Inc. has reached a deal to acquire Lomas Logistics, pending a final review of the financial statements and other contact matters. The transaction would technically be purchased through a Radiant wholly owned subsidiary, Wheels International Inc.
Lomas operates in Ontario and British Columbia as a third-party logistics provider serving industries such as consumer goods, health care, food and technology. The company earned about $13 million (C$17.7 million) in calendar year 2015 and posted about $1.4 million in adjusted earnings before interest, taxes, depreciation and amortization.
“As we have discussed, we have always viewed Wheels International as a platform to support our Canadian-centric acquisition initiatives, and we are excited to have the opportunity to make some progress on this front,” Radiant CEO Bohn Crain said. “Lomas Logistics also brings a unique health-care service offering with licenses from Health Canada to distribute medical devices, pharmaceutical and natural health products, which is expected to accelerate the development of a robust health-care service offering for Wheels and Radiant.”
The deal is being described as a “purchase of assets” only and could close by the end of the first quarter.
Radiant Logistics ranks No. 48 on the Transport Topics Top 50 list of largest logistics companies in North America.
NFI Industries announced it purchased Canadian freight service Dominion Warehousing & Distribution for an undisclosed price.
The deal could increase NFI’s Canadian-based revenue to over $125 million annually, expand its Canadian freight brokerage, forwarding and trucking operations and add 2 million square of warehousing in Toronto, Vancouver and Calgary, according to a company statement. NFI ranks No. 10 on the Transport Topics sector list of the top warehousing firms, but this deal could help the New Jersey-based company move closer to competitors such as UPS Supply Chain Solutions, Ceva Logsitics and the Kenco Group.
“We are excited for Dominion to join NFI and continue our growth in the Canadian market, which is core to our overall strategy. We will add new, blue-chip customers to our portfolio and at the same time provide our existing customers additional warehousing capacity in these markets,” NFI CEO Sid Brown said.
“Dominion provides a great opportunity for NFI to enter into new industries like specialty paints and chemicals and expand existing ones,” said Kevin Patterson, NFI president of distribution. “The acquisition increases our footprint and also expands our capabilities in these sectors.”
NFI also owns 2,000 tractors and 8,200 trailers, operated by more than 2,600 company drivers and 250 owner operators.
