In The News
Express-1 announces acquisition of Concert Group Logistics
Express-1 Expedited Solutions has announced that its newly created wholly owned subsidiary Concert Group Logistics, Inc., has acquired substantially all of the assets of Concert Group Logistics, LLC (CGL).
The deal, which closed January 31, 2008, provided for the payment by XPO at closing of $9.0 million in cash, the issuance of 4.8 million shares of XPO common stock and the assumption of certain CGL liabilities. Additional consideration in the amount of up to $2.0 million is payable over a two year period in the event the newly formed subsidiary achieves certain earn out targets.
Privately held CGL, based in Downers Grove, Illinois, is a
non-asset based premium transportation service provider focused on the freight forwarding industry. CGL is among the nation's fastest-growing companies in its market and within the logistics industry. In 2007, CGL was profitable on approximately $47 million in revenues.
Express-1 Expedited Solutions, Inc. expects the acquisition to be accretive in its first full quarter of combined operations.
"This is a historic day for Express-1 Expedited Solutions and its shareholders," said Chairman of the Express-1 Board, Jim Martell.
"CGL competes as a non-asset based provider in the high-growth transportation logistics market and is well positioned with a seasoned management team and a diverse base of loyal customers. Together, we have an excellent management team and great group of people."
Express-1's CEO Mike Welch said, "In CGL we have acquired a highly profitable business that aligns perfectly with our strategic focus of expanding our geographic footprint and enhancing our value-added service offerings."
"Our Express-1 Expedited Solutions platform, when combined with CGL and our newly formed Bounce operation positions our organization very well for expansion of our premium transportation footprint. CGL shares many similarities to our own Express-1 operating segment, being a non-asset based provider of high-priority premium transportation services through a network of independently owned stations. They have a great team and a wonderful culture. Based upon the strength of the CGL team and operating model, we anticipate our new operations will achieve the performance required for the additional earn out payment in 2008."
Welch continued, "Our acquisition of CGL provides substantial cross-selling opportunities for our ground expedite services, which will expand our opportunities and markets for ground expedite services. CGL broadens our expertise to areas such as air freight forwarding and strengthens our logistics management. The CGL network of independent station owners and the expertise of the management team provide our organization with a wealth of knowledge in building and maintaining an agency network. CGL's services generate strong margins and recurring revenue that will support our ongoing growth initiatives."
Based on current market conditions and the acquisition of the CGL assets, Express-1 Expedited Solutions, Inc. expects revenue for 2008 to be in the range of $120 million to $125 million, representing approximately 18 percent to 20 percent growth in the Company's combined operations.
The Company expects full-year net income in the range of $3.7 million to $4.2 million, or approximately $0.11 to $0.12 per fully diluted share, which includes the shares issued in the transaction.
For more information about the Company, visit www.express-1.com.