HOUSTON, Feb. 7 /PRNewswire-FirstCall/ -- EGL, Inc. (Nasdaq: EAGL)
today announced that the special committee of its board of directors has
been notified by General Atlantic LLC that it has withdrawn as an equity
sponsor from the offer made by James R. Crane, the Company's largest
shareholder, Chief Executive Officer and Chairman of the Board, and General
Atlantic to acquire all of the outstanding equity interests of the Company
for $36.00 per share in cash. General Atlantic indicated that its
participation in the offer has been withdrawn due to an expected shortfall
in EGL's fourth quarter 2006 results, as compared to amounts previously
anticipated by analysts and by General Atlantic.
EGL expects to release fourth quarter 2006 results on February 28,
2007. Although the Company has not completed the preparation of its
financial results for the fourth quarter, EGL expects that its results will
be negatively impacted by an approximately eight percent decline, compared
to the fourth quarter of 2005, in revenue per shipment at the company's
domestic freight forwarding division due to a greater proportion of
deferred heavy- weight airfreight and residential shipments during the
traditional peak shipping season. For the quarter, total domestic shipments
increased approximately eight percent over the fourth quarter of 2005. The
Company's quarterly results are also expected to be impacted by higher than
anticipated operating expenses.
EGL expects to report that it ended the year of 2006 with approximately
$142 million in cash, restricted cash and short-term investments and total
debt of approximately $170 million compared to $123 million in cash,
restricted cash and short-term investments and $231 million of total debt
at the end of 2005.
Mr. Crane has informed the special committee of the Company's board of
directors that he intends to pursue one or more alternative equity sources
to replace General Atlantic and that he intends to present a revised offer
to the board reflecting any such new equity commitments.
There can be no assurance that any revised offer or definitive offer
will be made, the terms of any such offer, that any agreement will be
executed or that this or any other transaction will be approved or
consummated.
Founded in 1984, Houston-based EGL, Inc. operates under the name EGL
Eagle Global Logistics. EGL is a leading global transportation, supply
chain management and information services company dedicated to providing
superior flexibility and fewer shipping restrictions on a price competitive
basis. With 2005 revenues of $3.1 billion, EGL's services include air and
ocean freight forwarding, customs brokerage, local pickup and delivery
service, materials management, warehousing, trade facilitation and
procurement, and integrated logistics and supply chain management services.
The company's shares are traded on the NASDAQ Global Select Market under
the symbol "EAGL".
CAUTIONARY STATEMENTS
The statements in this press release regarding fourth quarter and
year-end results, shortfall in financial performance, alternative equity
sources, any alternative or revised offer pursued by Mr. Crane and other
statements that are not historical facts, are forward looking statements.
These statements involve risks and uncertainties including, but not limited
to, results of audit and reviews, market conditions, availability and terms
of any alternative equity financing, availability of other acquisition
financing, approval of any offer by the special committee and board, the
Company's financial results and performance, actions by Mr. Crane with
respect to any future bid and other factors detailed in risk factors and
elsewhere in the Company's Annual Reports on Form 10-K and other filings
with the Securities and Exchange Commission. Should one or more of these
risks or uncertainties materialize (or the consequences of such a
development worsen), or should underlying assumptions prove incorrect,
actual outcomes may vary materially from those forecasted or expected. The
company disclaims any intention or obligation to update publicly or revise
such statements, whether as a result of new information, future events or
otherwise.
SOURCE EGL, Inc.
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Related links:
http://www.eaglegl.com
CONTACT:
Mike Slaughter, Vice President Finance of
EGL, Inc., +1-281-618-3428
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