Radiant Logistics, Inc. (NYSE MKT: RLGT), a third party logistics and multimodal transportation services company, today announced it has acquired Kentucky-based Highways and Skyways, Inc., a privately held company that provides a full range of domestic and international transportation and logistics services across North America.
Founded in 1987, Highways and Skyways is located near the Cincinnati, Ohio airport (“CVG”) and services a wide range of accounts including but not limited to customers in the manufacturing, apparel, paper products, medical devices, consumer products and technology industries. From inception through the date of acquisition, Highways and Skyways operated as an independent agency for Service By Air, an agent-based forwarding network acquired by Radiant yesterday. On a post-closing basis, Highways and Skyways will transition to the Radiant brand and operate as the CVG gateway supporting the Company’s 150+ company-owned and agency locations across North America and international partners around the world.
“We are proud to announce our partnership with Hank Gamm, David Scinta, Larry Widlowski and the entire CVG team,” remarked Radiant’s Founder and CEO, Bohn Crain. “We have purposefully positioned ourselves to bring value to logistics entrepreneurs like Hank, David and Larry and believe that the Highways and Skyways transaction is representative of the broader pipeline of opportunities available to us in the marketplace. We also believe the transaction is further validation of the strength of our value proposition in the marketplace, which is to bring new value to the agent based forwarding community by: (1) leveraging our status as a public company to provide our partners with an opportunity to share in the value they help create; (2) providing a robust platform in terms of people, process and technology which translates into better purchasing power with our vendors and more sophisticated technology solutions for our customers; and (3) offering a unique opportunity in terms of succession planning and liquidity for our station owners. In this regard, we are still very early in the process and believe we will have the opportunity to welcome a number of additional like-minded entrepreneurs who can benefit from the Radiant platform.”
Crain continued: “With the benefit of our recent acquisitions of Service By Air and Highways and Skyways we are also updating our preliminary guidance for our fiscal year ending June 30, 2016 and are projecting adjusted EBITDA in the range of $30.0 - $35.0 on $900.0 - $960.0 million in revenues. This is before considering the benefit of an additional $1.0 - $1.5 million in cost synergies that we expect to capture as we work through the integration process during our fiscal year ended June 30, 2016. This is a particularly exciting time for us and we see even more opportunity on the horizon to deliver further revenue and earnings growth through a combination or organic and acquisition growth initiatives. At the right place, at the right time with the right value proposition, we believe we remain uniquely positioned to deliver value for our operating partners, shareholders and the end customers we serve.” A reconciliation of adjusted EBITDA to net income, the most directly comparable GAAP measure, appears at the end of this release.
Hank Gamm, of Highways and Skyways commented, “We are thrilled about joining Radiant. Through years of dedicated service, our customers have always remained our top priority whether they were here in U.S. or abroad. This philosophy has been key to our success. 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 and provide an opportunity for growth for our employees. We found that partner in Radiant. Radiant has a real appreciation for the needs for the local owner/entrepreneur and a clear and achievable plan for building a world-class logistics organization. We are looking forward to leveraging our own strengths along with the capabilities of the Radiant network to bring additional value to our customers while enjoying the benefits of participating in an organization that, through its status as a public company, gives our team the opportunity to work as shareholders and participate in the value that we all help create.” Mr. Gamm will continue as General Manager, Mr. Scinta as Sales Manager and Mr. Widlowski as Operations Manager for Radiant’s CVG location.