Radiant Logistics Acquires Los Angeles Based Operating Partner Marvir Logistics
Radiant Logistics (NYSE: RLGT), a domestic and international logistics services company, today announced it has completed the acquisition of the assets of its operating partner Marvir Logistics, a privately held company based in Los Angeles that has operated under the Company's Airgroup brand since 2006. The Company structured the transaction similar to its previous acquisitions with a portion of the expected purchase price payable in subsequent periods based on the future performance of the acquired operation.
On a post-closing basis, Marvir will continue operating under the Airgroup brand through the remainder of 2012 and is expected to transition to the Radiant brand in early 2013 as Marvir is combined with existing Company owned operations in Los Angeles. The combination is also expected to provide meaningful cost synergies associated with the elimination of redundant facilities. Michael St. Julien will continue in his role as Regional Director responsible for operations of the newly combined organization that is expected to generate approximately $15.0 million per year in revenue. Walter Benvenuto will continue in a leadership role as Vice President of Sales managing the sales team of the newly combined organization. Tom Bowling will be transitioning into a well-earned retirement after 40 years of service in the transportation industry.
Tom Bowling, of Marvir commented, "Back in 2006 we were looking to align ourselves with a partner who shared our passion for the business. We found that, and so much more with Radiant. As an early partner and shareholder, it has been exciting to watch and be a part of the building momentum of the Radiant network. Bohn and the Radiant team have – in short – done what they said they were going to do: provide an environment that allowed us to build our business, share in the value creation opportunity as shareholders and transition our business in a way that met our own personal goals while ensuring that the interests of our customers and employees were taken into consideration. Radiant has a real appreciation for the needs of the local owner/entrepreneur and a clear and achievable plan for building a world-class logistics organization. I believe their value proposition will continue to attract and bring value to a great number of logistics entrepreneurs going forward and I am looking forward to their continued success."
"The Marvir transaction and our long-standing partnership with Tom and Walter are significant to the evolution of Radiant Logistics," remarked Radiant's Founder and CEO, Bohn Crain. "We launched Radiant in January of 2006 with the goal of bringing value to logistics entrepreneurs like Tom and Walter who would benefit from our unique value proposition with the immediate opportunity to become shareholders and share in the value that they were helping to create and the longer term opportunity to take advantage of the built-in exit strategy available to the entrepreneurs participating in our network. It was September of 2006 when we welcomed Tom and Walter to the network. Marvir was truly the first new station to join the Radiant family and they have led the way for many that have followed. From the beginning they have participated as shareholders and as one of the larger operating partners in our network. We are very proud to be able to support them in this transaction and help them reach their own individual goals."
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