Platinum Equity Signs Definitive Agreement to Acquire Logistics Business from Hays PLC
LOS ANGELES–(BUSINESS WIRE)–Nov. 26, 2003–Platinum Equity, LLC, announced today that it has signed a definitive agreement with Hays plc to acquire Hays Logistics, a leading provider of logistics and supply chain solutions to enterprise customers in Europe, with annual revenue of nearly $1.5 billion.
The agreement, signed today, is subject to regulatory and shareholder approval. It is expected to be completed in early 2004. Hays announced in March that it intended to sell the logistics division as part of a strategic restructuring to focus on its core personnel business.
"This acquisition underscores a concerted effort by Platinum to expand our global reach, particularly in Europe, as well as our market penetration in another mission-critical business sector," said Tom T. Gores, chairman and chief executive officer of Platinum Equity.
"We are absolutely delighted to acquire this business," Mr. Gores said. "Hays Logistics is a premier service provider that is well positioned to thrive under Platinum. It will be a cornerstone company as we grow in the supply chain and logistics market space."
Hays Logistics designs and implements complex supply chain solutions for both national and international enterprise customers. It is a leading provider of logistics outsourcing in Europe, with more than 16,000 employees and operations in 11 European countries and the United States.
In the fiscal year that ended June 30, the business reported revenue of GBP 854 million pounds sterling, (US $1.45 billion; Euro EUR 1.22 billion).
Hays Logistics operates in Belgium, France, Germany, Greece, Ireland, Italy, Netherlands, Poland, Spain, Portugal, the United Kingdom and the United States. The services it provides include supply-chain design; information systems and data management; distribution center and transport services; and asset management of returnable transport packaging and not-for-sale goods.
"This is a market-leading company that provides innovative solutions on both a local and pan-European basis," said Phil Norment, president of portfolio operations for Platinum Equity. "With a blue-chip customer base and strength across several key vertical markets, it is really poised to be a long-term force in this industry."
Hays' customer base encompasses the automotive and industrial, consumer, retail, telecommunications and technology sectors. Retail customers include Ahold, Auchan, B&Q, BP, Brico Leroy Merlin, Carrefour, J Sainsbury, KFC, Marks & Spencer and Waitrose. Customers in the consumer sector include Danone, Nestle, Kimberly Clark, Reckitt Benckiser, SC Johnson, Scottish Courage and Unilever. Automotive and industrial customers include Brembo, Daikin, Ford and Iveco, while the telecom and technology customer base includes Alcatel, Cisco, Nortel, Orange/France Telecom, Virgin and T-Mobile.
Mr. Norment said that Xavier Urbain, executive director of Hays Logistics, and members of his management team will continue to run the business, and will formulate a long-term strategy for its future growth and development as an independent operating company.
"We are very confident in Xavier and his team," Mr. Norment said. "They have worked hard to maintain a high level of customer service during a difficult transition period at Hays, and their leadership will be imperative in ensuring the stability and continuity of this business moving forward."
Mr. Norment said he expects a seamless transition as the business is established as a standalone company.
"Platinum has a very customer-focused approach to transition that is designed to ensure there is no disruption in service or service quality," Mr. Norment said. "Customer relationships are among the most important assets we acquire in a business, and we are going to do everything we can to make sure that customers are well-served."
The new business will be renamed, and details about the new name and brand image will be announced as the transition unfolds following completion of the acquisition.
The acquisition will be Platinum's second in Europe of a company with more than US $1 billion in revenue. Last year, Platinum acquired a $1.2 billion revenue business from Alcatel that was renamed NextiraOne Europe.
Aligned with a sister business in North America, NextiraOne is a leading global provider of voice and data networking solutions. The business serves customers in 15 European countries.
"Our success with NextiraOne validated our decision to expand in Europe, and we believe the logistics acquisition provides another significant opportunity for growth there," Mr. Norment said.
Upon completing the acquisition, Platinum Equity's portfolio of operating companies will include 20 companies with aggregate revenues of more than $5.5 billion, and more than 32,000 employees worldwide.
About Platinum Equity
Platinum Equity (www.platinumequity.com) is a global acquisition firm specializing in the strategic operation of mission-critical services and solutions businesses according to a unique M&A&O(SM) model of value creation. Since its founding in 1995, Platinum has completed nearly 40 privately funded acquisitions, leveraging a multi-billion dollar revenue base derived from the continued growth of its portfolio. With an established infrastructure in North America and Europe, Platinum employs a workforce of more than 16,000 serving more than 600,000 customer sites worldwide.
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Contact:
Platinum Equity, LLC
Mark Barnhill, 310-228-9514
[email protected]
