Radiant Logistics acquires Airgroup in $14 million deal

Radiant Logistics acquires Airgroup in $14 million deal

   Radiant Logistics Inc. has acquired privately held Seattle, Wash.-based freight forwarder Airgroup Corp. in a transaction valued at up to $14 million.

   Airgroup uses a network of independent carriers and more than 100 agents worldwide through its network of 34 exclusive agent offices across North America. Based on historic financial statements, Airgroup posted revenue of $51.5 million for the year ended June 30.

   Under terms of the agreement, Radiant Logistics will pay $9.5 million at the close of the transaction and an additional $4.5 million in a combination of cash and stock payable over the next five years based on the future performance of Airgroup.

   Airgroup will operate as a wholly owned subsidiary of Radiant Logistics, with Bill Moultrie continuing in his role as president and chief operating officer.

   At the same time, Radiant Logistics said it has obtained a $10 million revolving credit facility from the Bank of America, to provide the company with $2.5 million towards the Airgroup acquisition and funding for future acquisitions, working capital and general corporate purposes.

   “We are proud to announce our acquisition of Airgroup and partnership with Bank of America so early in the new year. With Airgroup as the foundation, we are well positioned with the people, process and technology infrastructure to execute our strategy to build a full-service, technology-driven, global logistics organization,” said Bohn Crain, Radiant Logistics’ chairman and chief executive officer.

   Radiant changed its name in October last year from Golf Two Inc., when Crain and Stephen M. Cohen, acquired a controlling 67.9 percent of the company’s outstanding securities from former officers and directors. Golf Two was initially formed to establish and operate retail golf store.