Radiant Logistics will purchase Distribution by Air under a $12 million transaction that will extend the consolidation among mid-sized U.S.-based freight forwarders.
The deal will add a business with $91 million in annual gross revenue to the $150 million operation at Radiant, a largely domestic forwarding business formed out of the consolidation of several other smaller forwarders.
The acquisition price includes $5.4 million in cash when the purchase closes some time in the fiscal quarter ending June 30 and other payments over the next three years, including $1.8 million based on integration milestones.
Radiant Chairman and CEO Bohn Crain says the company still has about $10 million remaining in a credit facility with Bank of America and may look at more acquisitions.
“This is a particularly exciting time for us and we see even more opportunity on the horizon to deliver further revenue and earnings growth through a combination or organic and acquisitive growth initiatives,” Crain said in a statement.
Bellevue, Wash.-based Radiant reported $90.9 million in gross revenue in the first six months of its fiscal year ending Dec. 31, 2010 and earned a $1.5 million net profit.