Radiant Logistics announced Wednesday it has acquired Cascade Enterprises of Minnesota Inc., one of its strategic operating partners that has been operating under its Airgroup brand for the past 15 years.
Financial terms of the transaction were not disclosed but as with prior agent acquisitions, a portion of the purchase price will be tied to the group’s future performance.
Cascade will remain under the Airgroup banner for the rest of 2022, transitioning to the Radiant brand early next year. Cascade will be combined with Radiant’s existing operations near Minneapolis.
Renton, Washington-based Radiant provides transportation and logistics services in multiple modes through a network of company-owned and independent agent locations, or strategic operating partners.
“As both an early partner and shareholder, it has been exciting to be a part of the building momentum of the Radiant network,” Tom Heinsen, Cascade founder and CEO said in a news release. “Radiant has consistently provided an environment that allowed us to build our business and share in the value creation opportunity as a shareholder.”
Heinsen will remain on board as vice president of strategic accounts at Radiant.
Cascade’s customers will now be able to access global freight platform Navegate, which Radiant acquired for $35 million at the end of 2021. The trade management offering provides digital logistics services in the U.S. and abroad, including customs brokerage, freight forwarding, drayage and truck brokerage.
“We launched Radiant in 2006 with the goal of partnering with logistics entrepreneurs who would benefit from our unique value proposition,” said Bohn Crain, Radiant founder and CEO. “It is satisfying to know that Tom has shared in the value that he has helped to create and is now able to take advantage of the built-in exit strategy available to the entrepreneurs participating in our network.”
Radiant continues to keep its powder dry in hopes of completing future deals.
In August, it announced the replacement of a revolving credit facility. A new $200 million program is $50 million higher than the prior facility. The agreement also provides an additional $75 million accordion feature to support M&A. In May, it upped its equity shelf registration to $150 million (from $100 million) to issue common stock if acquisition opportunities arise.
“We believe that the Cascade transaction is also indicative of the broader opportunity available to us in the marketplace and that there will be more entrepreneurs, both internal and external to our existing network, that will look to join our ranks,” Crain added.
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