HOUSTON, Jan. 5 /PRNewswire/ -- Eagle USA Airfreight, Inc.
(Nasdaq/NMS: EUSA), one of the nation's largest and fastest growing domestic
air freight forwarders, reported today that it has signed a letter of intent
to acquire Eagle Transfer, Inc. (Eagle Companies), a privately-held
international freight forwarder based in Miami, Florida. Eagle Companies is
among the market leaders serving Argentina, Brazil and Chile and other Latin
American countries, and is also very active in customs work and ocean
forwarding services. Sales for Eagle Companies totaled approximately
$19 million in the twelve-month period ended December 31, 1997.
Eagle Companies is a full-service forwarder whose services include customs
clearing services, ocean forwarding, and airfreight import and export.
Despite the similarity in names, Eagle USA Airfreight and Eagle Companies have
had no prior affiliation.
"This acquisition will be a great fit for us on many different levels,"
said James R. Crane, Eagle USA Airfreight Chairman and Chief Executive
Officer. "It will provide us with an instant presence in the fast-growing
South American countries of Argentina, Brazil and Chile, and allows us to
build business with our existing client base, many of which have significant
operations in these countries. The acquisition will also bring to Eagle USA
strong capabilities in customs work and ocean forwarding, two functions we
have targeted as we pursue our international growth plan. We are also
delighted to be gaining an invaluable resource in Raul Pedraza, the President
and Chief Executive Officer of Eagle Companies, and his experienced staff.
Raul has an intimate knowledge of the Latin American countries in which Eagle
Companies operates, as well as the important customs and ocean forwarding
functions which come over in the acquisition. For Eagle USA to have grown
these businesses from the ground up would have been a considerably more
expensive and time-consuming endeavor."
Crane added that Raul Pedraza will continue to head up the acquired
company, which will operate as a subsidiary of Eagle USA Airfreight Inc.
Crane also expects to retain the approximately 70 employees of Eagle
Companies.
Under the terms of the letter of intent, Eagle USA will acquire
substantially all of the operating assets of Eagle Companies. Eagle USA will
pay an undisclosed sum consisting of cash, Eagle USA common stock, and a three
year contingent earnout payable in Eagle USA common stock if certain
performance benchmarks are met. Completion of the acquisition will be subject
to further due diligence, approval of Eagle USA's board of directors, the
negotiation and execution of a definitive purchase agreement, regulatory
approvals, and other customary closing conditions.
On September 19, 1997, Eagle USA announced the acquisition of Michael
Burton Enterprises, a value-added logistics service provider, based in
Columbus, Ohio. Upon completion of the Eagle Companies acquisition, it will
be Eagle USA's second acquisition since its initial public offering in
December, 1995.
Eagle USA Airfreight's dedication to providing superior flexibility and
fewer shipping restrictions on a price competitive basis has made it a leading
provider of air freight forwarding and other transportation and logistic
services. Its network of 60 terminals features state-of-the-art information
systems to maximize cargo management efficiency and customer satisfaction.
The Company's shares are traded on the Nasdaq National Market under the symbol
"EUSA."
The statements in this press release regarding the completion of the
acquisition of Eagle Companies or any effects, benefits, results, terms or
other aspects of the acquisition and other statements which are not historical
facts are forward-looking statements. Such statements involve risks and
uncertainties, including, but not limited to, acquisition-related risks, risks
of international operations, competition, general economic conditions and
ability to manage growth and other factors detailed elsewhere in Company
filings with the Securities and Exchange Commission. Should one more of these
risks or uncertainties materialize, or should underlying assumptions prove
incorrect, actual outcomes may vary materially from those indicated. There
can be no assurance that the proposed acquisition will be consummated on the
terms or time frame described above, or at all.
SOURCE Eagle USA Airfreight, Inc.
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Related links:
http://www.eagleusa.com
CONTACT:
Douglas A. Seckel, Chief Financial Officer,
281-442-1188, or Mike Slaughter, Investor Relations,
281-442-1188, both of Eagle USA Airfreight
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