Stonepath purchases Regroup Express
Stonepath Group has acquired the business of Regroup Express LLC, a privately held provider of transportation logistics services to government agencies and defense suppliers.
Dennis Pelino, chairman & CEO of Stonepath, said the acquisition significantly enhances its presence in the Washington, DC, market and provides Stonepath with a platform focused on serving the logistics needs of U.S. government agencies and contractors.
Stonepath paid $4.7 million at closing in a combination of $3.7 million in cash and $1 million of Stonepath common stock. Additionally, Regroup will be entitled to an earn-out arrangement over a period of five years, providing for a total potential base purchase price of up to $17.2 million, contingent upon the future financial performance of Regroup.