Radiant Logistics has acquired On Time Express, a Phoenix-based, time-critical domestic and international logistics company.
On Time Express services companies in the aviation, aerospace, plastic injection molding, medical device, furniture and automotive industries, according to Radiant Logistics.
The transaction provides for an aggregate base purchase price of $20.0 million, consisting of $7.5 million to be paid at closing, $500,000 in company common stock to be paid at closing, $2.0 million payable in four quarterly installments commencing on the 90-day anniversary of the closing and an additional $10.0 million payable over the next four years in a combination of cash and company common stock based on the future performance of on-target earnings.
Post-closing, On Time Express will operate as a subsidiary of Radiant Transportation Services, a wholly owned subsidiary of the Radiant Logistics.
Based on historic financial statements provided by its management, On Time Express generated about $26.0 million in revenue for the 12 months ending June 30, 2013.
“We see OTE and its linehaul network as a catalyst for margin expansion and a competitive differentiator to help us secure new end customers and attract additional agent stations to our network,” said Bohn Crain, Radiant founder and CEO, in a written statement.
“The Radiant network, in combination with the OTE linehaul structure, will make for a unique and compelling value proposition in the marketplace, and I am looking forward to leveraging our own strengths along with Radiant’s extensive North American footprint and international capabilities,” added Bart Wilson of On Time Express. He will continue with Radiant post-closing and will serve as the chief operating officer of On Time Express.