By Lisa Kerner
Charlotte, N.C., March 19 - EGL, Inc. signed a definitive merger agreement under which its largest shareholder, chief executive officer and chairman of the board James R. Crane, along with Centerbridge Partners, LP and the Woodbridge Co. Ltd., will acquire the company for $38.00 per share in cash.
The transaction, valued at $1.7 billion, is expected to close in the second or third quarter of 2007, according to a company news release.
EGL's board approved the agreement and will recommend that its shareholders do the same.
Crane, who will continue as chairman and CEO following the transaction's close, will reinvest all of his 7,065,063 shares.
The transaction will be financed 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.
In February, EGL's special committee continued to evaluate strategic alternatives after Crane and General Atlantic proposed acquiring EGL for $35.00 per share.
General Atlantic later withdrew as an equity sponsor based on an expected shortfall in EGL's fourth-quarter 2006 results, according to a previous news release.
Houston-based EGL is a global transportation, supply chain management and information services company.
| Acquirer: | EGL management, Centerbridge Partners, LP and the Woodbridge Co. Ltd.
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| Target: | EGL, Inc.
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| Transaction value: | $1.7 billion
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| Payment per share: | $38.00
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| Announcement date: | March 1
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| Expected closing: | Second or third quarter of 2007
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| Stock price for target: | Nasdaq: EAGL; $34.96 on March 16
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