By Dom Welling,

Radiant Logisitics has agreed to acquire fellow transportation and logistics company, DBA Distribution Services, for $12 million.

Radiant Logistics, a domestic and international logistics services company, has agreed to acquire the New Jersey-based DBA Distribution Services, for $12 million.

DBA Distribution Services is a privately held company that operates under the trade name Distribution By Air (DBA) and provides a full range of domestic and international transportation and logistics services across North America.

The company services a diversified account base including manufacturers, distributors and retailers through its logistics centres in New Jersey and California as well as 24 other offices across North America.

Based on historic financial statements provided by its management, DBA generated approximately $91.6 million in revenues for the twelve months ended August 31, 2010.

With the acquisition, Radiant Logistics hopes to increase its earnings before interest, taxes, depreciation and amortization (EBITDA) from around $5,5m in June 2011, to approximately $9m in June 2012 on $285m in annual revenues.

The transaction will consist of $5.4 million paid in cash, $4.8 million paid in seller notes over the next three years, and the remaining $1.8 million will be paid on the achievement of certain integration milestones.

Following the transaction, Distribution By Air will operate as a wholly owned subsidiary of Radiant Logistics.

Bohn Crain, chairman and CEO of Radiant Logistics, said: Our plan is to continue to operate the DBA brand alongside Radiant's existing network brands while leveraging the increased and substantial purchasing power of the combined group.

"Through the purchase of DBA, Radiant will operate more than 100 stations in North America, giving us one of the largest footprints in our industry.

"We expect this will translate into improved profitability and strategic advantage for all of our stations."