Apollo makes revised $1.8 billion offer for EGL
Apollo Management and CEVA Logistics have upped their offer for Eagle Global Logistics.
EGL Inc., the parent company of Houston-based freight forwarder Eagle Global Logistics, said today it has received a cash offer from CEVA Logistics for $43 per share valued at $1.8 billion.
The proposal is a 13 percent premium over the existing offer for the company from Jim Crane, EGL's chairman, chief executive officer and largest shareholder, and two investment funds affiliated with Centerbridge Partners and the Woodbridge Co. EGL agreed March 19 to the $38-cash-per-share takeover offer from Crane's consortium, which is valued at $1.7 billion.
CEVA Logistics is owned by New York-based private equity investment group Apollo Management, which bought TNT Logistics last August from Dutch postal monopoly TNT N.V. and renamed the company. TNT Logistics provides contract logistics services and purchases transportation from other providers. EGL would allow CEVA to offer a more comprehensive suite of in-house logistics and transportation service.
Apollo previously offered EGL $40 per share the day after it accepted Crane's bid. It said that if its bid is accepted it will retain EGL's headquarters in Houston and run the company as a complementary operation to its logistics business.
EGL said the merger agreement with Crane's group remains in effect while the board considers the Apollo offer. Under the agreement, EGL can terminate the deal if it receives a bona fide superior proposal.
EGL's stock closed at $40 per share on Wednesday.
Apollo makes revised $1.8 billion offer for EGL
