Analytiqa: Logistics Bulletin: Friday 25th May

This week's Logistics Bulletin reports on the end of a five month takeover battle for EGL. With a bid valuing EGL at around US$2.0 billion, the combination of CEVA Logistics and EGL will create the world's fourth largest integrated supply chain management company, with leading global capabilities in freight forwarding and contract logistics. Following the news, investors led by EGL's largest shareholder, Chairman and Chief Executive James R. Crane have made accusations of wrong doing during the bidding process.

Elsewhere this week, M&A activity focuses on developing markets in India and Brazil, with news from DHL, Wal-Mart and Penske Logistics. Among contracts announced this week, business wins have been made by Cat Logistics, Schneider Logistics, Christian Salvesen and Kuehne + Nagel.

Primary research with UK retailers by Analytiqa, released as a complimentary White Paper, identifies the environmental benefits and cost savings of a Port-based supply chain strategy and how this is already being adopted across the UK. Analytiqa's White Paper includes case studies of three organisations who have already implemented such a strategy - ASDA, BMB Group, Stiller Group.

To request your complimentary copy of the White Paper, please send an email to enquiries@analytiqa.com with your request.

Market Forecasts in European Logistics to 2011

Analytiqa’s Western European Logistics research provides an analysis of past market performance along with forecast growth trends across seven major countries, in five key sectors.

Use this extensive data and analysis to understand the factors that drive manufacturers and retailers to outsource supply chain activity to specialist logistics service providers. As a supplier or 3PL, this research will enable the identification and targeting of future, potentially high yielding, growth markets and opportunities.

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Market size, market segmentation, market shares and outsourcing rates: 2000 - 2011
http://www.analytiqa.com/pdf/free/AnalytiqaWesternEuropeanLogistics.pdf

CEVA Logistics acquires EGL for US$2 billion

24 May - CEVA Logistics has signed a definitive merger agreement to acquire EGL for total transaction consideration of approximately US$2.0 billion. EGL's shareholders will receive $47.50 in cash for each share of EGL common stock they hold at the time of the merger. The board of directors of EGL, on the unanimous recommendation of a special committee comprised entirely of independent directors, has approved the agreement and will recommend that EGL's shareholders approve the merger.

In connection with this transaction, EGL has terminated its previous merger agreement with affiliates of James R. Crane, EGL's largest shareholder, CEO and Chairman of the Board, together with investment funds affiliated with Centerbridge Partners, L.P. and The Woodbridge Company Limited (the Crane group), after determining that CEVA's offer was more favourable to EGL stockholders. EGL has paid a US$30.0 million fee to the Crane group in connection with the termination.

The purchase price represents a premium of approximately 60.0% over US$29.78, the closing price of EGL stock on December 29, 2006, the last trading day before an initial proposal was made by the Crane group to take EGL private. It is also represents a 25.0% premium over the US$38.00 per share consideration that was to be paid under the Crane group's agreement.

The combination of CEVA Logistics and EGL will create the world's fourth largest integrated supply chain management company, with leading 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 its 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 transportation logistics provider in the world." Kulik continued, "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 transportation partners."

CEVA expects all existing operations at EGL will remain unchanged following the merger and will be managed under a new freight management division, headquartered at EGL's existing location in Houston, TX. The transaction is subject to regulatory approvals and the affirmative vote of the holders of a majority of EGL's outstanding shares. EGL and CEVA anticipate the transaction will close in the third quarter of 2007.

EGL reported 2006 revenues exceeding US$3.2 billion, derived from services which include air and ocean freight forwarding, customs brokerage, local pick-up and delivery service, materials management, warehousing, trade facilitation and procurement, integrated logistics and supply chain management services.

CEVA Logistics employs approximately 38,000 people and operates a global network with facilities in 26 countries worldwide, and maintains 567 warehouses globally with a combined space of approximately 7.4 million m2. For fiscal year 2006, CEVA generated sales of €3.5 billion. CEVA is owned by affiliates of Apollo Management VI, L.P., one of the leading private equity investors.

Elsewhere this week:

EGL Investor Group makes accusations of leaked bidding strategy
http://www.analytiqa.com/newsitem.aspx?articleid=2564

CEVA delivers revised offer for EGL
http://www.analytiqa.com/newsitem.aspx?articleid=2550

Agility acquires Leader Group in Egypt
http://www.analytiqa.com/newsitem.aspx?articleid=2569

Wal-Mart seeks stake in Indian logistics firm
http://www.analytiqa.com/newsitem.aspx?articleid=2562

DHL and Lemuir consolidate in India
http://www.analytiqa.com/newsitem.aspx?articleid=2561

VANTEC World Transport partner with ABX LOGISTICS
http://www.analytiqa.com/newsitem.aspx?articleid=2553

Penske and ABX LOGISTICS form joint-venture in Brazil
http://www.analytiqa.com/newsitem.aspx?articleid=2552

Cat Logistics provides solution to Oil Search Limited
http://www.analytiqa.com/newsitem.aspx?articleid=2551

American Port Services appointed by Whirlpool
http://www.analytiqa.com/newsitem.aspx?articleid=2565

Spar Retail renews agreement with Christian Salvesen
http://www.analytiqa.com/newsitem.aspx?articleid=2566

Kuehne + Nagel supports Italian retailer Agorà
http://www.analytiqa.com/newsitem.aspx?articleid=2567

Pratt & Whitney Canada open new parts DC in Singapore
http://www.analytiqa.com/newsitem.aspx?articleid=2558

ProLogis redevelops CEVA facilities in Italy
http://www.analytiqa.com/newsitem.aspx?articleid=2568

Itella Logistics to open a new logistics centre in St. Petersburg
http://www.analytiqa.com/newsitem.aspx?articleid=2563

Lloyd Fraser launches innovative new Home Delivery vehicles
http://www.analytiqa.com/newsitem.aspx?articleid=2560

UPS expands its green fleet
http://www.analytiqa.com/newsitem.aspx?articleid=2555

Culina Logistics takes greener route with Volvo
http://www.analytiqa.com/newsitem.aspx?articleid=2556

METRO Group and Checkpoint Systems partner in RFID
http://www.analytiqa.com/newsitem.aspx?articleid=2570

US retailer introduces temperature monitoring labels
http://www.analytiqa.com/newsitem.aspx?articleid=2554

UPS expand global service
http://www.analytiqa.com/newsitem.aspx?articleid=2557

Urban Transport Policy in Europe: Meeting City Demands for Green Logistics

New Research from Analytiqa
Urban Transport Policy in Europe: Meeting City Demands for Green Logistics takes an in-depth look at the current initiatives and legislation currently being planned and implemented across twenty cities in twelve European countries across both West and Eastern Europe.

The issues addressed are those that will have the greatest impact on providers working within the express, logistics or supply chain arena. It is critical that hauliers, courier and express, logistics and distribution companies across all sectors understand and account for changes in their operational environment.

This report will assist decision makers within these organisations to ensure correct future investment into vehicles, resources, strategies and services that are not only compliant with future environmental legislation (Euro 4, Euro IV, Euro 5, Euro V, etc) and developments, but more importantly, are considered and hence able to take full advantage of some of the opportunities the future, 'greener', market will provide.

Click http://www.analytiqa.com/reports.aspx?ReportId=252 for more information.

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Logistics and Supply Chain Research:

Who’s Who in Global Logistics and Freight Forwarding 2006

Since this report was last published, the Global Logistics and Freight Forwarding market has undergone significant change and widespread consolidation. This has dramatically impacted on the dynamics of the market as well as the competitive capabilities of many players.

This report provides you the insight into the market that you need in order to evaluate either your service providers or your competitors.

For more information, click: http://www.analytiqa.com/reports.aspx?ReportId=237

For more information about Analytiqa’s products please click:
http://www.analytiqa.com/Research.aspx

Analytiqa is a market analysis and business intelligence company providing published reports, custom research and consulting for multi-national clients across a number of industry sectors from Logistics and Distribution through to FMCG and Professional Services.

List of Key Industry Participants:

ABX LOGISTICS; BAX Global; CH Robinson; DHL Global Forwarding; EGL; Exel; Expeditors; FedEx; GeoLogistics; Hellmann Worldwide Logistics; Kintetsu World Express; Kuehne & Nagel; Maersk Logistics; Nippon Express; Panalpina; Schenker; SDV; UPS SCS; UTi Worldwide Logistics; Yusen; Wincanton; APL Logistics; TDG; Rhenus Logistics; Penske Logistics; DPWN; DHL; DHL Exel Supply Chain; Federal Express; Schneider Logistics; Schneider National; Schenker Logistics; Stinnes; Gist; Eagle Global Logistics; Menlo Worldwide; Jones Lang LaSalle; ProLogis; DTZ; Gazeley; Groupe Norbert Dentressangle; National Logistics Company; TNT; TNT Logistics; Gefco; Maersk; Geodis; GEFCO; Bibby Distribution; Global Automotive Logistics; Autologic; NYK Logistics; Dachser; DSV; Fiege; Frans Maas; Hellmann Worldwide; MOL; KWE; Kintetsu; Ewals; UPS; Ryder.

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Contact: Editor, Logistics Bulletin

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