RENTON, Wash. – Radiant Logistics (NYSE:), Inc. (NYSE American:RLGT), a provider of global transportation and logistics solutions, announced the acquisition of Viking Worldwide, Inc., a Minnesota-based logistics company. The transaction, structured with a payout based on future performance, brings Viking’s operations in Minneapolis and Houston into the Radiant fold.
Viking, founded in 1993, specializes in logistics services for industries such as high-tech, brand management, life sciences and trade shows. Following the acquisition, the company will continue to operate under the Service By Air brand, transitioning to the Radiant brand during 2024.
Mike Rothmeyer, a key Viking figure, will assume the role of Regional Director for Integrated Operations in Minneapolis and Houston. He expressed excitement about the opportunities this acquisition brings to the company’s customers and employees, citing Radiant’s support since the beginning of their partnership in 2015.
Bohn Crain, founder and CEO of Radiant, highlighted the acquisition as a testament to the company’s strategy to partner with logistics entrepreneurs. He believes this move is beneficial for all parties involved, including continuing Viking’s momentum within the Radiant network.
Radiant Logistics, a third-party logistics company listed on NYSE American, offers a range of services including freight forwarding, truck and rail brokerage, and value-added logistics such as warehouse management and technology services.
Its network includes both Radiant and agent-owned offices throughout North America and other global markets, serving a diverse client base primarily in the United States and Canada.
The press release also contains forward-looking statements regarding Radiant’s future operations and performance, which are subject to various risks and uncertainties. These projections are not guaranteed and are based on current expectations, market trends and expected synergies from recent acquisitions.
This expansion is part of Radiant’s ongoing commitment to broaden its service offerings and market reach, further solidifying its position in the logistics industry. The information in this article is based on a press release from Radiant Logistics, Inc.
Insights on InvestingPro
As Radiant Logistics (NYSE American:RLGT) continues to expand through strategic acquisitions, such as that of Viking Worldwide, Inc., it is important for investors to consider the company’s financial health and market performance. Second InvestireProRLGT’s liquid assets exceed its near-term obligations, suggesting a strong liquidity position that could support ongoing operations and integration costs associated with the acquisition.
While analysts expect sales to decline in the current year, they remain optimistic about RLGT’s profitability, predicting the company will remain profitable this year. This is reinforced by the company’s performance over the trailing twelve months as of Q1 2023, where it achieved a gross profit margin of 20.0% with gross profit of $177.67 million.
Despite the recent price decline of 17.03% over the past three months, RLGT operates with a moderate level of debt, which can offer some stability in a volatile market.
InvestingPro Data metrics also highlight a P/E ratio of 25.53, indicating investors’ expectations of future earnings growth relative to the current share price. The PEG ratio stands at -0.33, suggesting the stock may be undervalued based on its earnings growth rate. Additionally, the price-to-book ratio is 1.22, which could be attractive to investors looking for assets priced below their intrinsic value.
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