Under the terms of the agreement, GLAC will acquire Trenton, New Jersey-based Clark for $72.5 million of cash and issue 320,276 shares to certain shareholders. The transaction, which is subject to the review of the Securities and Exchange Commission, shareholder approval, and other customary closing conditions, is expected to be complete in the third quarter of 2007.
Clark, which is majority owned by members of the Anderson family and individuals associated with Anderson companies, provides value-added distribution, transportation management, and international air and ocean freight forwarding services to the print media industry.
The Clark Group represents an outstanding platform on which to build a growing global logistics network, said Jim Martell, chairman of Global Logistics. Clark’s operating expertise and loyal base of customers afford us a tremendous opportunity to expand into new geographic markets, industry verticals, and add complementary services.
Gregory Burns, president and CEO of Global Logistics, added: With its non-asset-based business model, Clark is well positioned to expand its market share in the fragmented $200 billion freight forwarding industry. With explosive growth in world trade fueling demand for logistics services around the globe, the accelerating trend of outsourcing of shipping operations by customers, and a fragmented marketplace of forwarders that is ripe for consolidation, we see Clark as an excellent platform to succeed in this promising market. We will work closely with Clark to grow its operations while also pursuing additional acquisition opportunities to build out our global platform.
Following the close of the transaction, Clark’s current management team will remain in place. Tim Teagan, will become CEO of The Clark Group and fellow Clark veteran John Barry, will be COO of the company’s international division. Both have entered into long-term employment agreements with the company. GLAC chairman Jim Martell will remain chairman of the board of the combined company. Upon closing of the transaction, Gregory Burns will become chairman of the newly-formed capital and acquisition committee.
