RENTON, Wash. - Radiant Logistics (NYSE:RLGT), Inc. (NYSE American:RLGT), a provider of global transportation and logistics solutions, has announced the acquisition of Viking Worldwide, Inc., a Minnesota-based logistics company. The transaction, structured with payment based on future performance, brings Viking's operations in Minneapolis and Houston into the Radiant fold.
Viking, established in 1993, specializes in logistics services for industries such as high-tech, brand management, life-sciences, and trade shows. Post-acquisition, the company will continue operating under the Service By Air brand, transitioning to the Radiant brand later in 2024.
Mike Rothmeyer, a key figure at Viking, will take on the role of Regional Director for the integrated operations in Minneapolis and Houston. He expressed enthusiasm for the opportunities this acquisition presents for the company's customers and employees, citing Radiant's support since their partnership began in 2015.
Bohn Crain, Radiant's Founder and CEO, highlighted the acquisition as a testament to the company's strategy of partnering with logistics entrepreneurs. He sees this move as beneficial for all parties involved, including the continuation of Viking's momentum within the Radiant network.
Radiant Logistics, a third-party logistics company traded on the NYSE American, offers a range of services including freight forwarding, truck and rail brokerage, and value-added logistics like warehouse management and technology services.
Its network encompasses both Radiant and agent-owned offices across North America and other global markets, serving a diverse customer 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 the anticipated synergies from recent acquisitions.
This expansion is part of Radiant's ongoing effort to grow its service offering and market reach, further solidifying its position in the logistics industry. The information for this article is based on a press release statement from Radiant Logistics, Inc.
InvestingPro Insights
As Radiant Logistics (NYSE American:RLGT) continues to expand through strategic acquisitions, like that of Viking Worldwide, Inc., it is important for investors to consider the company's financial health and market performance. According to InvestingPro, RLGT's liquid assets exceed its short-term obligations, which suggests a strong liquidity position that could support ongoing operations and integration costs associated with the acquisition.
While analysts expect a sales 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 last twelve months as of Q1 2023, where it achieved a gross profit margin of 20.0% with a gross profit of $177.67 million USD.
Despite the recent price drop of 17.03% over the last three months, RLGT operates with a moderate level of debt, which may offer some stability in a volatile market.
InvestingPro Data metrics also highlight a P/E ratio of 25.53, indicating investor expectations of future earnings growth relative to the current share price. The PEG ratio stands at -0.33, suggesting that the stock may be undervalued based on its earnings growth rate. Additionally, the Price / Book ratio is 1.22, which could be attractive to value investors looking for assets priced below their intrinsic value.
For investors interested in deeper analysis and more InvestingPro Tips, including whether RLGT's recent price decline represents a buying opportunity or a warning sign, visit InvestingPro. There are a total of 7 additional InvestingPro Tips available for RLGT, which could provide valuable insights into the company's future performance. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these insights and more.
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