Stonepath Group acquires Regroup Express

Stonepath Group Inc. has acquired Regroup Express LLC, a provider of transportation logistics services to government agencies and defense suppliers, the company announced today.

Stonepath of Philadelphia paid $4.7 million at closing, a combination of $3.7 million in cash and $1 million in Stonepath common stock. The acquisition closed last week.

In addition, Regroup of Sterling, Va., will be entitled to an earnout agreement over five years, bringing the total purchase price to $17.2 million contingent upon the future financial performance of Regroup.

The acquisition will enhance Stonepath's presence in the Washington market, company officials said. It will provide the company with a government services platform focused on the logistics needs of federal government agencies and contractors

Regroup is a non-asset-based logistics services business offering a range of time-definite domestic and international transportation services, including air and ground freight forwarding, major project logistics as well as pickup and delivery services.

The company's client base includes federal government agencies and contractors, select companies in the retail industry and other commercial businesses. Regroup had annual revenue of about $18.5 million in 2002, according to Stonepath.

Stonepath Group, a provider of global logistics services, has about 500 employees and had annual revenue of $139 million in fiscal 2002, according to Hoover's Online of Austin, Texas.