Radiant buying Wheels
TORONTO, Ontario—Pending shareholder approval, Radiant Logistics is buying Wheels Group Inc. The deal is expected to close early in the second calendar quarter of 2015, subject to regulatory and court approval, Wheels’ shareholder approval and other customary closing conditions.
“Combining with Radiant is an exciting opportunity to accelerate Wheels’ growth plans,” said Doug Tozer, Wheels CEO. “The two companies share the same vision and provide complimentary services, which will be leveraged to expand operational capabilities and geographic reach. We have a deep respect for the Radiant team, and it is clear that they share our commitment to maintaining the exceptional service Wheels’ customers expect. I’m proud of the Company that our team has built and look forward to Wheels’ continued growth working with the Radiant team.”
John Crain, founder and CEO of Radiant, commented: “We are very excited to partner with the Wheels organization, which represents a service line and geographic expansion for both companies. 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.”
The board of directors of Wheels, on the recommendation of the independent special committee, has approved the agreement and recommends that the Company’s shareholders vote in favour of the deal. The board of directors of Radiant has also approved the Arrangement.