Global Logistics Acquisitions in deal to buy Clark Group

Global Logistics Acquisitions in deal to buy Clark Group Global Logistics Acquisition Corp. said it had reached a definitive agreement to acquire The Clark Group, a provider of value-added distribution, transportation management, and international air and ocean freight forwarding services to the print media industry.
   Under terms of the agreement, Global Logistics will buy Clark, based in Trenton, NJ, for $75 million. The company will pay $72.5 million in cash and issue 320,276 shares to certain shareholders.
   Thirty-year-old Clark is majority owned by members of the
Anderson family and individuals associated with Anderson companies.
   The transaction is subject to the review of the Securities and Exchange Commission, shareholder approval, and other customary closing conditions.    Assuming conditions are met, Global Logistics anticipates completing the transaction in the third quarter of 2007.
   Global Logistics is an acquisition corporation, publicly traded on the American Stock Exchange. It is focused solely on acquiring privately held transportation and logistics companies. The Company raised net proceeds of about $88 million through its initial public offering in February 2006 led by BB&T Capital Markets and EarlyBirdCapital, Inc.
   Global Logistics said Clark has an asset-light business model, which the companies say has enabled Clark to increase revenues and EBIT while requiring minimal capital investment. In 2006, Clark generated revenue of $77 million.
   Jim Martell, chairman of Global Logistics, said Clark would be 'an outstanding platform on which to build a growing global logistics network' and that the company hoped to 'expand into new geographic markets, industry verticals, and add complementary services.'
   Gregory Burns, president and CEO of Global Logistics, said 'Clark is well positioned to expand its market share in the fragmented $200 billion freight forwarding industry.'
   Clark's current management team will remain in place.    Tim Teagan,
34 years with Clark, will become CEO, and John Barry, 19 years with Clark, will appointed chief operating officer of the company's international division. Both have entered into long-term employment agreements with the company.
   Martell will remain board chairman of the combined companies. Upon closing of the transaction, Gregory Burns will become chairman of the newly formed capital & acquisition committee.
   The transaction will be financed by Global Logistics' cash and the issuance of the 320,276 shares. By March 31, GLAC had more than $87 million held in trust exclusively for the use of completing a business combination.   
   Global Logistics will maintain a cash balance of about $13 million upon completing the transaction.    The company also plans to establish a $25 million credit facility for acquisitions and other growth initiatives. As part of the transaction, the founders of Global Logistics have placed 1.2 million founder's shares in trust subject to forfeiture unless certain business performance criteria are met.