West Palm Beach, Florida, October 20, 2006 – The ComVest Group announced that it has completed the purchase of Stonepath Logistics International Services, Inc. (“SLIS”), a division of The Stonepath Group (AMEX: STG), for aggregate consideration of $17.9 million. ComVest expects to finalize the purchase of the Stonepath Logistics (Germany) GmbH unit, for a proposed combined purchase price of $18 million. SLIS, based in Seattle, Washington, is a logistics business that provides international air and ocean logistics services.
The ComVest Group, through its private equity control fund, ComVest Investment Partners II LLC, has partnered with Jason F. Totah, who served as The Stonepath Group’s previous Chief Executive Officer, to effect the buyout of these division(s). The investment vehicle formed to consummate the transaction is JTM Acquisition Corporation (“JTM”), and will be controlled by ComVest. Jason Totah will continue to manage the company, which will operate under the new name of Global Transportation Service Inc.
About Stonepath Group (Amex: STG)
Stonepath is a global, third-party logistics organization providing a full range of transportation and distribution solutions to multinational and local businesses including a diverse client mix of retail leaders, automotive and technology concerns, government agencies, and defense contractors. For more information on Stonepath, visit www.stonepath.com.
About The ComVest Group
The ComVest Group is a leading Private Equity firm focused on investing in middle-market companies. Since 1988 ComVest has invested more than $2 billion of equity capital in over 200 public and private companies worldwide. Through our extensive financial resources and broad network of industry experts, they are able to offer their companies total financial sponsorship, critical strategic support, and business development assistance. Their focus is centered on building industry leading companies and creating long term value for equity holders. For more information on ComVest, visit www.comvest.com.