RADIANT LOGISTICS ACQUIRES TEXAS-BASED FOUNDATION LOGISTICS

Rhea-AI Summary

Radiant Logistics (NYSE American: RLGT) has acquired Foundation Logistics & Services, a Texas-based company specializing in transportation and logistics for the oil and gas industry. The acquisition strengthens Radiant's capabilities in supporting the oil and gas sector, particularly in handling hazardous materials and urgent oilfield equipment. Foundation, founded in 2014, will continue operating under its current name before transitioning to the Radiant brand in 2025. The deal structure includes performance-based payments in subsequent periods. This strategic move expands Radiant's service offerings and geographical presence, particularly in the Humble, Texas area, which holds personal significance for Radiant's CEO, Bohn Crain.

Positive

• Expansion into specialized oil and gas logistics services
• Acquisition of Foundation's expertise in hazardous materials transportation
• Potential for increased revenue from the oil and gas sector
• Geographic expansion in the Texas market
• Retention of Foundation's leadership team for operational continuity

Negative

• Performance-based payments may impact future cash flows
• Integration challenges may arise during the transition to Radiant brand
• Exposure to volatility in the oil and gas industry

Strengthens Capabilities in Support of the Oil and Gas Industry

RENTON, Wash., Sept. 4, 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 Foundation Logistics & Services, LLC  ("Foundation"), a Humble, Texas -based, privately held company that provides a full range of specialized transportation and logistics services for companies involved in the exploration, drilling, and production of oil and gas.  The Company 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 2014, Foundation specializes in servicing the oil and gas industry with a focus on the transportation of hazardous materials, including explosives, and urgent oilfield equipment to points around the world.  On a post-closing basis, Foundation will continue under the leadership of co-founders Larry Earley and Cindy Jones and continue to operate as Foundation Logistics with the expectation that the company will ultimately transition to operate under the Radiant brand in 2025.   Post-closing, both Larry Earley and Cindy Jones will report to Tim O'Brien, SVP and General Manager of Radiant's U.S. forwarding operations.

Larry Earley of Foundation 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 Cindy and I are excited to leverage our own strengths along with the capabilities of the larger Radiant network to bring additional value to our customers moving forward."

"We are proud to announce our partnership with Larry, Cindy and the entire Foundation team," remarked Radiant's Founder and CEO, Bohn Crain. "Having grown up in and around Humble, Texas and considering myself a product of the "oil patch", I am particularly excited to partner with Larry and Cindy to broaden our capabilities in support of the oil and gas industry while flying the Radiant flag in my hometown."

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, 2023 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?

Radiant Logistics (RLGT) acquired Foundation Logistics & Services, , a Texas-based company specializing in transportation and logistics for the oil and gas industry.

How will the acquisition of Foundation Logistics affect Radiant's services?

The acquisition will strengthen Radiant's capabilities in supporting the oil and gas industry, particularly in handling hazardous materials and urgent oilfield equipment transportation.

When will Foundation Logistics transition to the Radiant brand?

Foundation Logistics is expected to transition to operate under the Radiant brand in 2025.

What is the structure of the acquisition deal for RLGT?

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

Who will lead Foundation Logistics after the acquisition by RLGT?

Foundation Logistics will continue to be led by co-founders Larry Earley and Cindy Jones, who will report to Tim O'Brien, SVP and General Manager of Radiant's U.S. forwarding operations.