RNS No 4315d
NFC PLC
14 September 1999
NFC agrees sale of Allied Pickfords
NFC plc and Clayton, Dubilier & Rice, Inc. have today agreed to combine their
worldwide moving services businesses, Allied Pickfords and North American Van
Lines, respectively. The combined business will be the world's largest moving
services provider with revenues of more than $2 billion and operations in 36
countries, and will benefit significantly from the integration of the
constituent national operations in the USA and related international networks.
NFC will receive consideration valued at approximately $450 million (#280
million) for Allied Pickfords, comprising:
* $400 million (#248 million) in cash
* $25 million of preferred stock
* a 20% equity interest in the combined business
* a warrant to subscribe for a further 10% equity interest
NFC expects that additional long-term value will arise from its continuing
interest in the combined business, which will be treated as an investment in
NFC's accounts.
NFC has been advised by Morgan Stanley and Credit Suisse First Boston.
The net cash proceeds received by NFC will be used to accelerate the
development of Exel Logistics, one of the world's leading supply chain service
providers. In the short term, part of the proceeds will be used to reduce
borrowings. Consideration will also be given in due course to returning any
surplus capital to shareholders.
For the year ended 30 September 1998, Allied Pickfords' operating profit
before exceptional items was #31.1 million on turnover of #698.3 million. Net
assets at 30 September 1998 were #76.4 million. The estimated book gain on
disposal, after accounting for goodwill, investment in the business since 30
September 1998, tax and transaction costs will be approximately #90 million.
The sale is conditional upon regulatory approval in certain jurisdictions, in
particular the United States, and on the successful completion of the buyer's
financing programme. Completion is expected during the fourth quarter of 1999
when these conditions are satisfied.
Commenting on the sale, Gerry Murphy, NFC's Group Chief Executive, said:
"Looking ahead, Exel Logistics will benefit from our total focus on the global
supply chain service market and from the financial resources released by the
sale of Allied Pickfords. Exel Logistics is already well positioned for growth
arising from continuing outsourcing and globalisation of the supply chain, and
from e-commerce. Allied Pickfords will also benefit from the exclusive focus
of its new owners on the worldwide moving business."
Morgan Stanley & Co. Limited and Credit Suisse First Boston (Europe) Limited
are acting exclusively for NFC plc in connection with the sale and will not be
responsible to anyone other than NFC for providing the protections afforded to
customers of Morgan Stanley & Co. Limited and Credit Suisse First Boston
(Europe) Limited or for giving advice in relation to the sale.
Contact:
Gerry Murphy NFC Group Chief Executive +44 (0)171 317 0110
David Finch NFC Group Finance Director +44 (0)171 317 0111
John Rudofsky Citigate Dewe Rogerson +44 (0)171 282 2901
Editors' Notes:
Information on NFC plc and Exel Logistics
www.nfc.com
www.exel.com
Information on Allied Pickfords
Allied Pickfords is a leading worldwide moving services business. In North
America, Allied Van Lines provides interstate and international relocation
services, using the resources of approximately 550 independent agents. In the
UK, Continental Europe and Australasia, Pickfords and Allied Pickfords provide
domestic and international relocation services, commercial and industrial
moving and business services, largely through a network of wholly-owned
businesses.
www.alliedintl.com
Information on North American Van Lines
North American Van Lines, with annual revenues of approximately $1billion,
provides interstate and international moving services and is a major provider
of specialist transportation for high-value products. It has a network of
over 780 agent locations in North America and some 350 overseas. North
American Van Lines was acquired by Clayton, Dubilier & Rice in 1998.
www.navl.com
Information on Clayton, Dubilier & Rice
Clayton, Dubilier & Rice, Inc. is a New York-based private equity firm with
$4.5 billion of equity capital under management. Since its founding in 1978,
CD&R has invested in 29 companies including Kinko's, Alliant Foodservice, and
Lexmark International.
www.cdr-inc.com
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