Exel acquires Transbeynak of Turkey

(London, UK- 16 June 2003) Exel, the world leader in supply chain management, announced today that it has agreed to acquire Transbeynak, a leading regional supply chain management business, based in Turkey. Transbeynak provides supply chain services to the pharmaceutical and healthcare markets. The acquisition is expected to be earnings enhancing in its first full year.

Transbeynak, founded in 1967, operates both bonded and non-bonded, temperature controlled facilities with a mixture of manual and automated specialist packaging and labelling operations. The Company has a significant share of the market in Turkey and works in partnership with 12 of the world’s leading pharmaceutical and healthcare companies, including Boehringer Ingelheim and Bayer from its two facilities in Avcilar, west of Istanbul. Transbeynak reported net operating assets of around US$0.5m (as at 30/09/02).

The all cash acquisition will strengthen Exel’s healthcare operations in Europe, through combining Transbeynak’s strong customer relationships in Turkey with Exel’s significant experience in managing global supply chains and ongoing healthcare activity across Europe. This should allow the Group to develop other sales opportunities, as well as providing an enhanced platform for further expansion in Europe.

Graham Inglis, President, Healthcare Worldwide at Exel, commented: “The acquisition of Transbeynak will enable us to offer a wider range of services to our key healthcare clients. Transbeynak’s reputation as a highly customer focused business fits well with Exel’s philosophy and we are looking forward to working with our enhanced management team to grow the business in this region where we already have significant operations for leading consumer customers.”