CEVA Logistics proposes acquiring EGL for $1.8 billion in cash, Crane's $1.7 billion offer still in effect

By Lisa Kerner

Charlotte, N.C., May 3 - Apollo Management VI, LP portfolio company CEVA Logistics made a definitive proposal to acquire EGL, Inc. $43 per share in a cash transaction valued at $1.8 billion.

The $43 per share price is a premium of about 13.2% over the $38 per share price proposed on March 19 by EGL chairman and chief executive officer James R. Crane, Centerbridge Partners, LP and the Woodbridge Co. Ltd. That proposal, valued at $1.7 billion, is currently pending and expected to close in the second or third quarter of 2007.

EGL said its special committee will promptly consider the Apollo group's proposal while the current merger agreement with the Crane group remains in effect.

CEVA said its bid is fully financed bid and expects to close the transaction this summer, according to a company news release.

In addition, CEVA plans to keep EGL's headquarters in Houston and to use EGL's operations as a complementary base to expand CEVA's scale and product offerings globally.

Financing for the Crane group's transaction will be through a combination of investor equity and debt financing of $1.175 billion provided by Woodbridge and by affiliates of Merrill Lynch, Pierce, Fenner & Smith Inc. and Wachovia Corp.

CEVA Logistics (formally known as TNT Logistics) is a Hoofddorp, Netherlands-based logistics and supply chain management company. Apollo Management is a private equity firm based in New York.

Houston-based EGL is a global transportation, supply chain management and information services company.

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