Radiant Logistics Completes its Acquisition of Isla International in Laredo, Texas

Thu Dec 1, 2011 6:29pm EST

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Radiant Logistics Completes its Acquisition of Isla International in Laredo, Texas

Secures $10.0 million in Subordinated Debt from Caltius Mezzanine

PR Newswire

BELLEVUE, Wash., Dec. 1, 2011 /PRNewswire/ -- Radiant Logistics, Inc. (OTC QB: RLGT), a domestic and international logistics services company, today announced it has completed its acquisition of the assets of Laredo-based Isla International Ltd., a privately-held company that provides a full range of cross-border transportation and logistics services between the United States and Mexico.  

The transaction was originally announced on November 15, 2011, and is valued at up to $15.0 consisting of:  cash of $7.7 million paid at closing, $1.3 million in company stock payable on the three-month anniversary of the closing and an additional $6.0 million payable over the next four years in a combination of cash and Company common stock based on the future performance of the acquired operation. The Company may, at its sole option, elect to satisfy up to 25 percent of each of the performance-based payments through the issuance of the Company's common stock and valued based upon a 30-day volume weighted average price to be calculated preceding the delivery of the shares.  In connection with the transaction, the company also concluded its previously announced financing with Caltius Mezzanine who provided $10.0 million in subordinated debt in support of the transaction.

"We are happy to have been able to move so quickly to a smooth closing," said Radiant's Chairman and CEO, Bohn Crain. "We look forward to working with Jonathan Fuller, Alfonso Serna and the entire Isla team.  Jonathan and his team are the experts when it comes to cross-border transportation solutions with Mexico and we are excited for the opportunity to bring these capabilities forward for the benefit of our 100+ locations across North America and the end customers that we serve."

Crain continued: "We are equally excited to have completed our financing with Caltius Mezzanine.  We see even more opportunity on the horizon to deliver further revenue and earnings growth through a combination of organic and acquisitive-growth initiatives and believe Caltius Mezzanine represents a great partner and resource for growth capital as we continue to build out the Radiant Network."

About Radiant's Mexico Gateway
Founded in 1996, Radiant's Mexico Gateway (f/k/a Isla International Ltd.) provides bilingual expertise in both north and south bound cross-border transportation and logistics services to a diversified account base including manufacturers in the:  automotive, appliance, electronics and consumers packaged goods industries from its strategically-aligned location in Laredo, Texas.  To learn more about Radiant's Mexico Gateway and our cross-border solutions contact Jonathan Fuller at (956) 721-8101.

About Caltius
Based in Los Angeles, Caltius Mezzanine provides innovative capital solutions in amounts of $10 to $100 million to middle market companies throughout North America. Since its founding in 1997, Caltius Mezzanine has invested over $800 million in a broad range of industries to support acquisitions, recapitalizations, buyouts, and organic growth. Caltius Mezzanine is currently investing out of its fourth fund, Caltius Partners IV, LP, a $500 million fund that closed in 2008.  For more information about Caltius Mezzanine, please contact Gavin Bates at (310) 996-0145.

About Radiant Logistics (OTC QB: RLGT)
Radiant Logistics (www.RadiantDelivers.com) is executing a strategy to build a global transportation and supply chain management company through organic growth and the strategic acquisition of regional best-of-breed non-asset based transportation and logistics providers, to offer its customers domestic and international freight forwarding and an expanding array of value added supply chain management services, including asset recovery/reverse logistics, order fulfillment, inventory management and warehousing. For more information about Radiant Logistics, please contact Founder and CEO Bohn Crain at (425) 943-4599. 

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding future operating performance, events, trends and plans. All statements other than statements of historical fact contained herein, including, without limitation, statements regarding our future financial position, business strategy, budgets, projected revenues and costs, and plans and objectives of management for future operations, are forward-looking statements.  Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expects," "intends," "plans," "projects," "estimates," "anticipates," or "believes" or the negative thereof or any variation thereon or similar terminology or expressions. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause our actual results to differ from our expectations, include but are not limited to, Isla's ability following the acquisition to maintain and grow its revenues and operating margins in a manner consistent with its most recent operating results, our ability to integrate Isla's operations with our historic operations, our ability to realize cost synergies through our integration of DBA Distribution Services, Inc., the effect that the acquisition will have on Isla's existing customers and employees as well as those risk factors that apply to our operations as disclosed in Item 1A of  our Report on Form 10-K for the year ended June 30, 2011 and other filings with the Securities and Exchange Commission and other public documents and press releases which can be found on our web-site (www.radiantdelivers.com). Readers are cautioned not to place undue reliance on our forward-looking statements, as they speak only as of the date made. Such statements are not guarantees of future performance or events and we undertake no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances occurring after the date hereof.

SOURCE Radiant Logistics, Inc.

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