Carlson Wagonlit taps three banks for Navigant acquisition financing

By Sara Rosenberg

New York, April 27 - Carlson Wagonlit Travel has obtained commitments from JPMorgan, Lehman Brothers and Morgan Stanley for debt financing to help fund its acquisition of Navigant International Inc., company officials said in a conference call Thursday.

Under the acquisition agreement, Carlson Wagonlit will purchase all outstanding shares of Navigant for $16.50 per share. The total transaction value, including the assumption of debt, is about $510 million.

The transaction, which is expected to close in second half of this year, is subject to approval by the holders of a majority of Navigant's common stock, regulatory approvals, completion of financing and other customary conditions.

In a related transaction, Carlson Cos. and One Equity Partners agreed to acquire the 50% interest in Carlson Wagonlit held by Accor Group for $465 million. Upon completion of this transaction, Carlson will increase its stake in Carlson Wagonlit to 55%, while One Equity will own 45%. This transaction, which is expected to close after regulatory approval, will be funded with a combination of debt and equity, officials added in the call.

For the Navigant acquisition to be completed, the Accor, Carlson Cos. and One Equity Partners transaction must be successful.

Carlson Wagonlit is a Minneapolis-based business travel management company. Navigant is a Denver-based provider of travel management solutions.

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