CLAYTON DUBILIER & RICE ANNOUNCES MERGER OF NORTH AMERICAN VAN LINES AND ALLIED VAN LINES TO CREATE GLOBAL INDUSTRY LEADER
COMBINED COMPANY TO MAINTAIN WELL-KNOWN BRANDS AND PURSUE GROWTH INITIATIVES
NEW YORK, September 14, 1999 – Clayton, Dubilier & Rice, Inc. (“CD&R”) and North American Van Lines, Inc. announced today a definitive agreement to merge North American Van Lines and Allied Van Lines in a transaction that will combine two of the world’s largest and best known relocation and logistics companies. The merger, valued at approximately $450 million, will create a more effective global competitor with locations in 36 countries, including 1,100 agents in North America and worldwide revenues of more than $2 billion.
North American stated that it intends to maintain the high profile brand names of both companies, which are among the most recognized household, commercial and industrial brands in the world. The leading brands include North American Van Lines in the U.S. and Canada; Allied Van Lines in the U.S. and Canada; Pickfords in the U.K.; and Allied Pickfords in Europe, Australia and Asia. The combined company will be a market leader in relocations worldwide. It will be headquartered in Fort Wayne, Ind., and will maintain executive offices in Naperville, Ill.; London, England; and Melbourne, Australia.
The transaction will create an industry leader in the household goods moving business and will strengthen North American’s specialized transportation of high value products by permitting seamless service spanning the globe. Under the terms of the merger agreement, NFC plc [London Exchange: NFC], Allied’s parent, will receive $400 million in cash, approximately $25 million in preferred stock and common stock representing approximately 20% of the capital stock of North American’s parent company, NA Holding Corporation, plus warrants to acquire an additional 10% of the common shares outstanding. An investment fund managed by CD&R, and management and agents will own the balance of the combined company.
James W. Rogers, a principal of CD&R, will serve as Chairman of the combined company and R. Barry Uber, North American Van Lines’ President and Chief Executive Officer, will continue as the Chief Executive Officer of the company. Michael Fergus, the President and Chief Executive Officer of Allied Van Lines will continue to lead the Allied Van Lines business in the U.S. and Canada. Julian Nicholls will continue to head up the operations of Pickfords and all Allied Pickfords locations in Europe, and Kevin Pickford will continue to manage the operations of Allied Pickfords in Australia, New Zealand and Asia.
“The merger is a terrific strategic fit between two companies with complementary strengths and exceptional brand names. The combined company will have significant operational breadth and management depth,” said Joseph L. Rice III, Chairman of CD&R. “We are pleased that NFC shares our optimism about the prospects for this merger and will retain a significant equity stake in the new enterprise,” said Mr. Rice.
“Our new company will be a more effective global company in relocation services and logistics solutions with a passionate commitment from our family of associates, agents and drivers to high quality customer satisfaction. We will aggressively pursue and invest for new growth opportunities,” said Mr. Rogers. “This merger provides us the opportunity to achieve market leadership, a challenging and rewarding work environment and strong financial performance. We will create real value for our customers, our investors and the many talented members of our agent, driver and associate network.”
“We bring together two outstanding teams with an agent network unmatched in the industry. Our ability to deliver differentiated solutions to our customers will make us a powerful global competitor,” said Mr. Uber.
“We will have the size, scope and management leadership to provide the most innovative service offerings in the business,” said Mr. Fergus. “I’m excited about the opportunities this merger provides for all of our stakeh
