Stonepath buys Regroup Express

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

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