Stonepath Group has agreed to acquire United American Freight Services Inc. Once completed, the acquisition will build upon Stonepath's domestic network and will give the company a new time-definite logistics service offering focused on the automotive industry.
"United American is an excellent addition to our network and it builds upon the domestic platform we created with Air Plus Limited," Stonepath CEO Dennis Pelino said. "United will complement and enhance our existing services through new geographic markets and a broadened client base."
Founded in 1973, United American's transportation and logistics services including time-definite air and ground distribution, warehousing and order fulfillment services. United American serves a client base that includes some of the leading automotive companies in the world, as well as manufacturers and other clients. The company had revenues of $21.5 million for the year ended 2001.
The transaction is valued at up to $16.1 million, consisting of cash of $5.1 million at closing and a four-year earn-out arrangement based upon the future financial performance of United American.
"We are very excited to be joining the Stonepath network," United American president Doug Burke said. "This is an important step forward for United American, our customers and our employees."