Washington-based Radiant Logistics Inc. announced on Tuesday it has agreed to acquire Wheels Group Inc., one of the largest non-asset based third party logistics providers based in Canada.
Radiant, through its newly formed subsidiary Radiant Global Logistics, has agreed to acquire all of the outstanding common shares of Wheels, pursuant to approval by Canadian regulators.
Under the deal, Radiant has agreed to purchase Wheels for approximately $57. With Wheels debt expected to be refinanced the transaction is expected to have a value of $78.5 million.
Bohn Crain, chairman and CEO of Radiant, will retain these positions and lead the combined company.
Tim Boyce, president of Wheels' U.S. operations will continue as the chief operating officer of the combined organization's North American brokerage operations and Peter Jamieson, president, Wheels Canada, will continue as senior vice president and country manager for Canada.
The board of directors of Wheels, on the recommendation of the independent special committee, has approved the deal and recommended that the Wheels shareholders vote in favor of it
The transaction is expected to close early in the second calendar quarter of 2015.
According to Radiant, Wheels was founded in 1988, providing intermodal and truck brokerage services throughout the U.S. and Canada along with third party logistics solutions and warehouse and distribution service offerings in support of U.S. shippers looking to access the Canadian markets.
Wheels' Canadian operations are headquartered Toronto, Ontario, while its U.S. operations are headquartered in Chicago.
Radiant is a non-asset based transportation and logistics company providing domestic and international freight forwarding services along with customs and property brokerage, order fulfillment, inventory management and warehousing. The company operates through a network of company-owned and independent agent offices across North America under the Radiant, Airgroup, Adcom, DBA and On Time network brands.