BELLEVUE, Wash. — Wheels Group has been acquired by Radiant Logistics.
The deal was announced this morning. Wheels Group is one of the largest non-asset based third-party logistics providers in Canada. Radiant, out of Bellevue, Wash., has established a new wholly-owned subsidiary, Radiant Global Logistics, to acquire all the outstanding common shares of Wheels Group. The combined entity will trade on the NYSE as RLGT.
The deal is worth about $95 million Canadian and should close early in the second quarter.
“We are very excited to partner with the Wheels organization, which represents a service line and geographic expansion for both companies,” said Bohn Crain, founder and CEO of Radiant. “We have been looking for a truck brokerage and intermodal platform to complement our forwarding operations for some time and we expect this transaction to be accretive to our earnings (as adjusted for amortization of acquired intangibles) within the near term and accelerate our growth. For our fiscal year ending June 30, 2016, our preliminary estimates for the revenues of the combined group are projected at USD $750 million.”
Wheels was founded in 1988 and provides intermodal and truck brokerage services through the US and Canada, as well as third-party logistics solutions and warehousing. It is based in Toronto and operates a US branch out of Chicago, Ill.
Crain will remain as chairman and CEO of Radiant. Tim Boyce, Wheels Group’s president of US operations will stay on as chief operating officer of the combined organization’s North American brokerage operations. Peter Jamieson, president, Wheels Canada, stays on as senior vice-president and country manager for Canada.
“Wheels and Radiant share a common vision and provide complimentary services which will be leveraged to expand operational capabilities and geographic reach,” said Doug Tozer, chief executive officer of Wheels. “We look forward to working with Radiant to introduce intermodal and truck brokerage capabilities to customers in their network, as well as support them with opportunities here in Canada while leveraging Radiant’s domestic and international freight forwarding capabilities across our own customer base.”
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