Radiant Logistics To Acquire Wheels Group - Quick Facts

(RTTNews) - Radiant Logistics Inc. (RLGT.PK) announced it has agreed to acquire Wheels Group Inc. (WGI.V), one of the largest non-asset based third party logistics providers based in Canada. The combined company will continue to trade on the NYSE MKT under the symbol, RLGT. Bohn Crain, Chairman and CEO, will retain these positions and lead the combined company.

Radiant has agreed to purchase Wheels for C$0.77 per common share, payable either in cash or by delivery of Radiant shares valued at $4.25 per share, for a total equity value of approximately C$69 million. The company said, with historic Wheels debt expected to be refinanced, the transaction is expected to have an estimated total enterprise value of C$95 million.

Bohn Crain, CEO of Radiant, said: "We are very excited to partner with the Wheels organization, which represents a service line and geographic expansion for both companies. 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. For our fiscal year ending June 30, 2016, our preliminary estimates for the revenues of the combined group are projected at US$750 million."