Radiant acquires Cascade Enterprises of Minnesota
– Cascade will continue to operate under the Airgroup brand through the remainder of 2022 and is expected to transition to the Radiant brand in early 2023
Radiant Logistics recently acquired Cascade Enterprises of Minnesota Inc., one of its strategic operating partners that has been operating under its Airgroup brand for the past 15 years.
Financial terms of the transaction were not disclosed, but as with prior agent acquisitions, a portion of the purchase price will be tied to the group’s future performance, company officials said.
Cascade will remain under the Airgroup banner for the rest of this year, transitioning to the Radiant brand early next year. Cascade will be combined with Radiant’s existing operations near Minneapolis.
Renton, Wash.-based Radiant provides transportation and logistics services in multiple modes through a network of company-owned and independent agent locations, or strategic operating partners.
“As both an early partner and shareholder, it has been exciting to be a part of the building momentum of the Radiant network,” Tom Heinsen, Cascade founder and chief executive, said in a news release. “Radiant has consistently provided an environment that allowed us to build our business and share in the value creation opportunity as a shareholder.”
Heinsen will remain on board as vice president of strategic accounts at Radiant.
Cascade’s customers will now be able to access global freight platform Navegate, which Radiant acquired for $35 million at the end of last year. The trade management offering provides digital logistics services in the U.S. and abroad, including customs brokerage, freight forwarding, drayage and truck brokerage, according to the press release.
“We launched Radiant in 2006 with the goal of partnering with logistics entrepreneurs who would benefit from our unique value proposition,” said Bohn Crain, Radiant founder and chief executive. “It is satisfying to know that Tom has shared in the value that he has helped to create and is now able to take advantage of the built-in exit strategy available to the entrepreneurs participating in our network.”
“Radiant continues to keep its powder dry in hopes of completing future deals,’’ the company said.
In August, it announced the replacement of a revolving credit facility. A new $200 million program is $50 million higher than the prior facility. The agreement also provides an additional $75 million accordion feature to support mergers and acquisitions. In May, the companyt upped its equity shelf registration to $150 million from $100 million to issue common stock if acquisition opportunities arise.
“We believe that the Cascade transaction is also indicative of the broader opportunity available to us in the marketplace and that there will be more entrepreneurs, both internal and external, to our existing network that will look to join our ranks,” Crain said.
Navegate‘s robust digital platform offers a unique combination of tech-enabled services, customs brokerage expertise, and a full complement of international and domestic services to help customers significantly reduces costs and better manage their compliance and risk mitigation strategies. In 2021 Navegate was acquired by Radiant and continues to evolve and offer unparalleled control and visibility over the supply chain process.
About Radiant Logistics (NYSE American: RLGT)
Radiant Logistics, Inc. (www.radiantdelivers.com) is a publicly traded third party logistics company providing technology-enabled global transportation and value added logistics solutions primarily to customers based in the United States and Canada. Through its comprehensive service offering, Radiant provides domestic and international freight forwarding along with truck and rail brokerage services to a diversified account base including manufacturers, distributors and retailers which it supports from an extensive network of Radiant and agent-owned offices throughout North America and other key markets around the world. Radiant’s value-added logistics services include warehouse and distribution, customs brokerage, order fulfillment, inventory management and technology services.