EGL, Eagle Global Logistics (Acquired by CEVA 2007)

2007

In May EGL, Inc. and CEVA Group Plc owned by Apollo private equity announced that they had signed a definitive merger agreement.

CEVA acquired EGL for $2bn.

EGL's shareholders received $47.50 per share in cash.

The EGL board's special committee comprised of independent directors approved the agreement unanimously and recommend EGL's shareholders approve the merger.

EGL terminated its previous merger agreement with affiliates of James R. Crane, EGL's largest shareholder, Chief Executive Officer and Chairman of the Board. EGL paid a $30m fee to the Crane group in connection with the termination.

The purchase price represented a premium of approximately 60% over the end December 2006 price, before an initial proposal was made by the Crane group to take EGL private.

CEVA claimed the deal will make it the world's fourth largest 'integrated supply chain management company'. 

CEVA expected all existing operations at EGL will remain unchanged following the merger and will be managed under a new freight management division, headquartered at EGL's existing location in Houston. The transaction was subject to regulatory approvals and the affirmative vote of the holders of a majority of EGL's outstanding shares.

EGL and CEVA anticipate the transaction will close in the third quarter of 2007.

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EGL, Inc. (EGL Eagle Global Logistics) is a global Freight Forwarder and provider of supply chain solutions, transportation services, and logistics management and information technology.  EGL's non-asset-based business model consists of its international air and ocean freight forwarding, customs brokerage and related import/export services, North America expedited freight network, logistics and warehousing (including value-added distribution) and advanced information technology capabilities.

 

The company has cultivated partnerships with suppliers that offer volume contracts to complement EGL's broad range of services.  EGL has a global infrastructure of approximately 400 service centres in more than 100 countries spread across six continents with over 12,500 employees.

 

The company operates a global network of owned offices as well as numerous partnerships.   After EGL acquired Circle International Freight in 2000, the UK Company changed its name to EGL and was integrated into the new parent's global network.

 

In 2006 revenues increased by 7% to $1.0bn on gross revenue of $3,217m compared with $948m (Gross $3,096m) in 2005.  EGL also reported net income of $56.3m compared with $58.2m.

 

Operating income for full year 2006 was $96.5m, an increase of 1% from $95.4m earned in 2005.

 

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EGL Eagle Global Logistics was founded in 1984 by James Crane, with its global headquarters located in Houston, Texas. Since then the company has grown from a domestic freight forwarder to one of the leading providers of end-to-end supply chain solutions in domestic and international freight transportation, integrated logistics management and information technology.

 

EGL acquired London-based, S. Boardman, in 1998 and shortly thereafter, EGL made acquisitions in Latin America and office openings in Asia.  Since then in an attempt to develop a global network it has acquired companies such as Compass Cargo, CTI (Canada) Ltd. and Fastair Cargo Systems, Miami Air International and Transimpex.