Radiant Logistics Announces Plan to Acquire Canada-Based Lomas Logistics
BELLEVUE, Wash., Jan. 5, 2017 /PRNewswire/ -- Radiant Logistics, Inc. (NYSE MKT: RLGT), a third party logistics and multi-modal transportation services company, today announced it has entered into a letter agreement, by which, through its wholly owned subsidiary, Wheels International Inc., it has expressed its intent to acquire Lomas Logistics, a division of L.V. Lomas Limited. Lomas Logistics operates as a third party logistics provider serving companies across a diverse range of industries including consumer goods, healthcare, food and technology and operates from locations in Ontario and British Columbia, Canada.
Based on unaudited and pro forma historic financial statements provided by L.V. Lomas, Lomas Logistics, generated approximately CAD$1.9 million in normalized EBITDA on approximately CAD$17.7 million in revenues for calendar 2015. The transaction has been structured as a purchase of assets and subject to completion of Radiant due diligence, the drafting of a definitive purchase agreement satisfactory to both parties, as well as the satisfaction of certain standard and customary pre-closing conditions, the transaction is expected to close in the quarter ended March 31, 2017.
"We are happy to announce our pending transaction to acquire Lomas Logistics and are looking forward to welcoming Harry Smit and the entire Lomas Logistics team to the Radiant/Wheels family," remarked Radiant's Founder and CEO, Bohn Crain. "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. In addition to leveraging our core competency and purchasing power across several key market verticals, Lomas Logistics also brings a unique healthcare 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 healthcare service offering for Wheels and Radiant."
About Radiant Logistics (NYSE MKT: RLGT)
Radiant Logistics, Inc. (www.radiantdelivers.com) is a comprehensive North American provider of third party logistics and multimodal transportation services. As a non-asset provider, with minimal investment in equipment, the company delivers advanced supply chain solutions through a network of company-owned and strategic operating partner locations across North America. Through its comprehensive service offering, Radiant provides domestic and international freight forwarding services, truck and rail brokerage services and other value-added supply chain management services, including customs brokerage, order fulfillment, inventory management and warehousing to a diversified account base including manufacturers, distributors and retailers using a network of independent carriers and international agents positioned strategically around the world.
About L.V. Lomas
L.V. Lomas is one of North America's leading distributors of chemicals and ingredients, raw materials and packaging products founded in 1960 by Lloyd V. Lomas.
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to our ability to close the transaction contemplated as the transaction is presently only covered by a preliminary letter agreement which is terminable by either party. Furthermore, there can be no assurances that the parties will be able to agree on a mutually satisfactory definitive acquisition agreement; nor can we assure that even if such an agreement is completed, that the transaction will be closed as it remains subject to our due diligence and the completion to our satisfaction of a number of other material closing conditions, including, but not limited to, the securing of regulatory approvals, licenses and permits concerning the operations of Lomas Logistics, securing employment arrangements with the key personnel of Lomas Logistics, and the securing of bank approval by Radiant. Assuming the transaction is ultimately completed, we cannot assure that the future financial performance of the acquired division will remain consistent with past results; nor that future integration efforts will produce any particular set of expected cost or revenue synergies, or expansion of service offerings.
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SOURCE Radiant Logistics, Inc.