Mainfreight announces agreement to acquire Target Logistics, Inc
Mainfreight Limited (Mainfreight) has signed a definitive merger agreement to acquire Target Logistics, Inc. (Target Logistics), a U.S. and international freight forwarder and logistics provider publicly listed on the American Stock Exchange (ticker symbol TLG).
Under the terms of the merger agreement, Mainfreight will acquire Target Logistics for approximately US$53.7 million, or US$2.50 per share of common stock. The Board of Directors of Target Logistics has unanimously approved the merger agreement, and the merger agreement contemplates that holders of a majority of Target Logistics’ voting stock will execute written consents in favour of adoption of the merger agreement so as to assure the requisite stockholder approval of the transaction without the need for any other stockholder vote.
The acquisition of Target Logistics will be Mainfreight’s largest acquisition to date.
Target Logistics provides freight forwarding and logistics services across both international and domestic U.S. supply chains. It is a third party logistics services company providing time definite and value-added supply chain solutions to over 3,000 customers. It has a network of 34 offices across the United States, including exclusive agency relationships in 20 cities. In addition, Target Logistics maintains an international network of agents covering over 70 countries, including China and other countries in South-east Asia. Target Logistics’ services include international air and ocean transport. Target Logistics generally handles cargo shipments weighing more than 50 pounds (23 kg) and requiring time-specific delivery. Average shipments weigh 1,700 pounds (773 kg), which is very similar to Mainfreight’s freight profile. Target Logistics’ sales revenues in the financial year to June 2008 are expected to exceed US$180 million, and earnings will be positive.
Mainfreight believes that this transaction will provide it with a foundation for further growth in both the U.S. and international freight markets, which is consistent with its strategies expressed to the market over the past 12 months.
“We are impressed by Target Logistics’ strong culture and we look forward to assisting Target Logistics in achieving its growth targets and expectations,” said Don Braid, Mainfreight’s Group Managing Director.
Pending the completion of certain closing conditions, the transaction is expected to close during November 2007.
For further information, please contact Don Braid, Group Managing Director, telephone +64-9-259 5503, mobile +64-274 961 637 or email firstname.lastname@example.org.