RENTON, Wash. - Radiant Logistics (NYSE:RLGT), Inc. (NYSE American: RLGT), a third-party logistics company, announced today the acquisition of Seattle-based Cascade Transportation, Inc., a provider of domestic and international transportation and logistics services. The transaction terms include a performance-based component of the purchase price, payable in future periods.
Cascade, established in 1982, offers customized services to a variety of industries, including retail and e-commerce. It has operated within a competing transportation group until its acquisition. Under Radiant's ownership, Cascade will maintain its current leadership and will be rebranded as Radiant Global Logistics (RGL-SEA).
David Comstock from Cascade expressed enthusiasm for the new partnership, emphasizing the alignment in customer service values and growth opportunities within Radiant's larger organization. Bohn Crain, Radiant's Founder and CEO, echoed this sentiment, highlighting the value the acquisition brings to both entities and the broader market opportunities it represents.
Radiant Logistics, based in the United States, provides a wide range of logistics services, including freight forwarding, truck and rail brokerage, and value-added services like warehousing and inventory management. The company operates an extensive network across North America and other key global markets.
The press release also contained forward-looking statements regarding Radiant's future performance and strategic plans, which are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from expectations.
This acquisition is part of Radiant's strategic initiative to expand its service offerings and market reach. The information reported is based on a press release statement from Radiant Logistics, Inc.
InvestingPro Insights
As Radiant Logistics (NYSE American: RLGT) moves forward with its strategic acquisition of Cascade Transportation, the company's financial health and market performance remain critical for investors. According to InvestingPro data, Radiant Logistics has experienced significant revenue contraction, with a -32.97% decline over the last twelve months as of Q3 2024. Despite this challenge, the company has maintained a gross profit margin of 19.81% during the same period.
InvestingPro Tips suggest that while analysts have revised their earnings expectations downwards and anticipate a sales decline in the current year, they also predict that Radiant Logistics will be profitable this year. The company's liquid assets surpass its short-term obligations, indicating a solid liquidity position. Moreover, Radiant operates with a moderate level of debt, which may provide some financial flexibility as it integrates Cascade into its operations.
Furthermore, it is notable that Radiant Logistics has been profitable over the last twelve months, although it does not pay a dividend to shareholders. This could signal a reinvestment of profits back into the company's growth initiatives, such as the recent acquisition. Investors interested in a deeper dive into Radiant's financials and future prospects can find additional insights on InvestingPro, with a total of 7 tips available to guide investment decisions. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription for a more comprehensive analysis.
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