Ceva is to acquire forwarding group EGL for about £1 billion ($2bn).
The combination will create the world’s fourth largest integrated supply chain management company, with global capabilities in freight forwarding and contract logistics.
Ceva CEO Dave Kulik said, “The acquisition of EGL is a transforming event for Ceva and increases the ability of both companies to serve existing customers. We are very excited to have many of the senior leadership at EGL join Ceva as our partners and look forward to working together to build the leading transport logistics provider in the world.
“Maintaining the continuity of EGL’s senior management team and its employees around the world is a priority and Ceva is committed to ensuring a smooth transition of ownership and continuing the strong relationships EGL has with its transport partners.”
Ceva expects all existing operations at EGL to remain unchanged following the merger and will be managed under a new freight management division, headquartered at EGL’s existing location in Houston.
EGL and Ceva anticipate the transaction will be completed in the third quarter of 2007.
EGL had previously agreed a deal with with affiliates of James R. Crane, EGL’s largest shareholder, chief executive officer and chairman of the board, together with investment funds affiliated with Centerbridge Partners, L.P. and The Woodbridge Company.
After deciding that CEVA’s offer was more favorable to EGL shareholders, EGL has paid a $30 million fee to the Crane group to terminate that deal.
