Logistics provider Stonepath Group plans to acquire Air Plus Limited, a group of Minneapolis-based, privately held companies that provide a full range of logistics and transportation services. The total value of the transaction is $34.5 million, consisting of cash of $17.5 million at closing and a four-year earn-out arrangement based upon the future financial performance of Air Plus, Stonepath said.
Founded in 1990, Air Plus is a time-definite transportation logistics provider, offering a range of transportation and distribution services including warehousing and order fulfillment. Air Plus services a customer base of manufacturers, distributors and national retail chains through its network of 16 offices in 13 North American cities and Puerto Rico and an extensive network of over 200 agents.
For the year ended December 31, 2000, Stonepath said Air Plus had pre-tax earnings of $3.9 million on gross revenue of $56.2 million. This reflects a 30% increase over the $43.4 million of revenue recorded for the prior year and an 18% increase over the $3.3 million of pre-tax earnings realized for the prior year, Stonepath said.
Stonepath said it expects to use Air Plus as an “operating platform” upon which to build a technology-driven, full-service, global logistics organization. Founded in 1998, Philadelphia-based Stonepath Group has since this June been attempting to build a global logistics organization that integrates streamlined operating companies and innovative technologies.
The company appointed Dennis Pelino, a logistics executive with over 25 years’ experience in the logistics industry, to the position of chairman & CEO and charged him with executing that plan.