RENTON, Wash. - Radiant Logistics (NYSE:RLGT), Inc. (NYSE American: RLGT), a provider of global transportation and logistics solutions, has announced the acquisition of Foundation Logistics & Services, LLC, a Texas-based company specializing in logistics for the oil and gas sector. The transaction, structured with a portion of the payment contingent on the acquired company's future performance, aims to enhance Radiant's offerings in the transportation of hazardous materials and urgent oilfield equipment worldwide.
Foundation Logistics, established in 2014, will continue to operate under its current leadership, with co-founders Larry Earley and Cindy Jones reporting to Tim O'Brien, Radiant's SVP and General Manager of U.S. forwarding operations. The company is expected to transition to the Radiant brand in 2025.
Larry Earley expressed enthusiasm for the partnership, emphasizing the shared commitment to customer service and the growth opportunities for their employees. Radiant's Founder and CEO, Bohn Crain, who has personal ties to Humble, Texas, also conveyed excitement about expanding their capabilities in the oil and gas industry.
Radiant Logistics, with a network of offices across North America and other key markets, offers a range of services including freight forwarding, truck and rail brokerage, and value-added logistics such as warehousing, customs brokerage, and inventory management.
This acquisition is part of Radiant's strategic expansion, aiming to leverage synergies and enhance service offerings to its customer base in the oil and gas industry. The company has provided forward-looking statements about its anticipated future performance and the potential benefits of the acquisition.
The information for this report is based on a press release statement.
In other recent news, Radiant Logistics, a third-party logistics company, has announced its acquisition of DVA Associates, a Portland-based logistics services provider. This move is part of the company's ongoing strategy to expand its North American operations and strengthen its presence in the Portland market. Further, Radiant Logistics has also acquired Seattle-based Cascade Transportation, another strategic initiative to broaden its service offerings and market reach.
Radiant Logistics recently reported a net loss of $703,000 for the quarter ended March 31, 2024. This is in contrast to the net income of $4.183 million from the same period last year, attributed to a sluggish freight market and industry overcapacity. Despite this setback, the company expects a sequential quarterly recovery, bolstered by its strong cash position of $31.2 million and lack of debt.
Analysts from various firms have noted these developments, offering their expectations for the company's future performance based on current market conditions and trends. However, it is important to note that these projections should be considered with caution. As part of Radiant's broader plan, the company continues to attract logistics entrepreneurs to its network, leveraging its existing platforms for expansion.
InvestingPro Insights
As Radiant Logistics (NYSE American: RLGT) embarks on its strategic acquisition of Foundation Logistics & Services, investors and industry watchers are keen to understand the financial health and prospects of the company. Recent data from InvestingPro shows a mixed picture for Radiant, which could influence the company's performance following the acquisition.
One notable metric is the company's revenue for the last twelve months as of Q3 2024, which stands at $828.66 million. However, this figure represents a significant decline of 32.97% from the previous year. The quarterly revenue growth also dipped by 24.41%, reflecting challenges in the current market conditions. Despite these revenue downturns, Radiant has managed to maintain a gross profit margin of 19.81%, suggesting some resilience in managing costs relative to sales.
InvestingPro Tips for Radiant Logistics highlight a couple of critical factors that investors should consider. Analysts have recently revised their earnings estimates downwards for the upcoming period, indicating potential headwinds for the company's profitability. Nevertheless, Radiant's liquid assets surpass its short-term obligations, which suggests the company has a cushion to manage its immediate financial commitments.
For those looking for deeper insights, InvestingPro offers additional tips on Radiant Logistics' valuation, debt levels, and profitability. As of now, there are 9 additional tips available on InvestingPro, which can be accessed for further detailed analysis.
The acquisition of Foundation Logistics & Services is a strategic move for Radiant, but it comes at a time of revenue pressures for the company. Investors would do well to keep an eye on how this acquisition integrates with Radiant's existing operations and whether it can help reverse the recent downward trends in revenue.
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