EGL to Be Sold to CEO, Investor Groups for $1.7 Billion
$38 Per-Share Price Is $2 More Than Original Offer
Transportation firm EGL Inc. said Monday it has signed a definitive merger agreement under which EGL Chairman and Chief Executive Officer James Crane and two investment firms will buy the firm for $38 per share, or about $1.7 billion.
Under the deal, Crane — who is the company’s largest shareholder — will buy the firm and take it private along with Centerbridge Partners and the Woodbridge Co.The purchase price is an increase from Crane’s original offer of $36 per share, first announced in January, with a different investment group.EGL’s board has approved the agreement and will recommend that the company’s shareholders approve the merger, the company said.The purchase price is about 27% higher than the $29.78 closing price of EGL’s stock on Dec. 29, the last trading day before an initial proposal was made to take EGL private.The company’s stock closed at $34.96 a share Friday. It was trading at $36.64 a share on the Nasdaq Stock Market early Monday.Crane, who will continue as chairman and CEO following the deal, will reinvest all of his 7,065,063 shares into the company, EGL said.EGL, which operates under the name Eagle Global Logistics, is ranked No. 11 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.