Total Logistics (NASDAQ:TLCX)
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SUPERVALU Completes Tender Offer for Total Logistics, Inc.
Acquisition Gives SUPERVALU Significant Foothold in Third Party Logistics
Market
MINNEAPOLIS, Feb. 7 /PRNewswire-FirstCall/ -- SUPERVALU INC. (NYSE:SVU)
announced today the successful completion of the cash tender offer for all
outstanding shares of common stock of Total Logistics, Inc. (NASDAQ:TLCX), an
industry-leading national provider of integrated third-party logistics services
and manufacturer of premier refrigeration systems. The tender offer, which
commenced on January 7, 2005, expired at 12:00 midnight EST on Friday, February
4, 2005.
A total of approximately 5,449,500 shares of Total Logistics common stock were
validly tendered and not withdrawn prior to the expiration of the offer,
representing approximately 98.5 percent of the outstanding shares of Total
Logistics. SUPERVALU has accepted these shares and payment will be made
promptly.
SUPERVALU expects to complete the acquisition of Total Logistics today through
a short-form merger in which shares of common stock not purchased in the tender
offer will be converted into the right to receive $28.50 per share in cash,
without interest. A letter of transmittal to be used for surrendering
certificates in exchange for the cash will be sent to holders who did not
tender their shares in the offer. The aggregate transaction value is
approximately $234 million, including assumed debt of approximately $69 million
and transaction expenses. SUPERVALU expects the acquisition to be slightly
accretive to fiscal year 2006.
The acquisition consolidates Total Logistics' and SUPERVALU's established
third-party logistics businesses, creating an expanded platform and
infrastructure from which the company will serve new and existing customers
with proven end-to-end supply chain solutions.
Jeff Noddle, chairman and CEO of SUPERVALU, stated: "We are extremely pleased
to complete this acquisition. Total Logistics is a perfect fit with
SUPERVALU's long-term strategic goals for our third-party logistics business.
SUPERVALU's strength, experience and resources, combined with Total Logistics'
solid customer base, comprehensive supply chain services offering and critical
mass, enables us to offer an expanded suite of logistics solutions to current
and prospective customers -- not only in the food business but in other
industries as well."
SUPERVALU's newly combined third-party logistics business offers customers a
broad suite of services including warehouse management, transportation,
procurement, contract manufacturing and logistics engineering and management
services; it manages more than 30 facilities around the country. The customer
base consists of local, regional, national, and international firms engaged in
food and beverage manufacturing, consumer and industrial product manufacturing,
wholesale distribution and retailing. The consolidated 3PL business unit will
report to Mike Jackson, SUPERVALU executive vice president, and president and
COO, distribution, who has guided the company's 3PL efforts.
The acquisition also brings SUPERVALU the capabilities of Zero Zone, a
successful niche manufacturer of refrigerated and frozen display cases serving
the grocery, convenience, dollar and drug store chains. In addition, the
company produces refrigeration systems and racks to power and control the
refrigeration systems, electrical panels and stand-by power for both retail and
industrial applications. Zero Zone is known as a pioneer for innovations like
improved case lighting and energy efficiency. The Zero Zone operation will
report to Dave Boehnen, SUPERVALU executive vice president.
For the nine months ended Sept. 30, 2004, Total Logistics, Inc. reported
revenues of $253.3 million, up 25 percent. Total Logistics, Inc. is a
Milwaukee-based holding company; its two wholly owned subsidiaries, Total
Logistic Control (TLC) and Zero Zone, employ a total of approximately 3,000
people.
About SUPERVALU INC.
Celebrating its 135th year of fresh thinking, SUPERVALU INC., a Fortune 100
company, is one of the largest U.S. companies with operations in grocery retail
and supply chain services. With annual revenues of approximately $20 billion,
SUPERVALU holds leading market share positions across the U.S. with its more
than 1,500 retail grocery locations, including licensed Save-A-Lot locations.
With its Save-A-Lot format, the company holds the number one market position in
the extreme value grocery retail sector. Through SUPERVALU's network of 24
strategically located distribution centers, the company provides supply chain
services and related logistics support services to nearly 4,500 grocery
retailers across the nation. In addition, SUPERVALU's third-party logistics
business provides end-to-end supply chain management solutions that deliver
value for food and beverage manufacturers, consumer and industrial product
manufacturers, wholesale distribution companies and retailers. SUPERVALU,
together with TLC and Zero Zone, currently has more than 58,000 employees. For
more information about SUPERVALU visit http://www.supervalu.com/ .
DATASOURCE: SUPERVALU INC.
CONTACT: Media, Lynne High, +1-952-828-4515, or
, or Investors, Yolanda Scharton, +1-952-828-4540, or
, both of SUPERVALU INC.
Web site: http://www.supervalu.com/