Clayton, Dubilier & Rice Fund to Purchase North American Van Lines from Norfolk Southern
NEW YORK, January 12, 1998 -- Clayton, Dubilier & Rice, Inc. (CD&R) today announced a definitive agreement to purchase North American Van Lines, Inc., the largest single-brand van line in the U.S. in terms of shipments, from Norfolk Southern Corporation (NYSE-NSC). The total transaction is valued at approximately $200 million.
Upon completion of the merger, a CD&R-managed fund will be the majority owner of North American Van Lines.
"North American Van Lines is an exceptional brand with leading market positions and a reputation for a high level of customer satisfaction," said Joseph L. Rice, III, chairman and chief executive officer of CD&R. "We look forward to partnering with North American Van Lines' strong management team and its agent family to maintain its industry leadership and pursue opportunities for continued profitable growth in the U.S. and abroad."
"Fueled by corporations' increasing requirements for specialized transportation services and the mobility of the American people, NAVL is positioned for steady growth in the $7 billion moving industry," said R. Alan Brogan, president and CEO of North American Van Lines. "We are pleased to be associated with Clayton, Dubilier & Rice given its track record of growing businesses and helping build long-term value for employees, customers, and other important company constituencies."
"While North American Van Lines is an excellent business, Norfolk Southern is directing the company's resources towards strengthening and expanding our rail freight network," said David R. Goode, chairman, president and chief executive officer of Norfolk Southern. "The transaction makes good financial and strategic sense from our standpoint."
The financing for the transaction will include a $65 million equity investment by a CD&R-managed fund. CD&R said it has secured financing commitments from Chase Manhattan Bank for the debt portion of the transaction. The transaction is expected to be completed in the second quarter of 1998.
CD&R is a private investment firm that manages a $1.5 billion pool of equity capital on behalf of public and private pension funds, college endowments, private foundations, banks and insurance companies. Since its founding in 1978, the firm has invested in 26 companies with aggregate annual sales exceeding $17 billion. On December 22, 1997, the firm announced a definitive agreement with Dynatech Corporation (NYSE:DYT) for a management-led $900 million recapitalization plan.
With over $900 million in revenue, North American Van Lines, Inc., is a recognized leader in the movement of household goods and specialized cargo for individuals, corporations and government clients worldwide. Established in 1933, the company operates through a network of agents with over 780 locations in the U.S. and Canada and 350 locations overseas. The company currently employs approximately 2,900 people worldwide and is headquartered in Fort Wayne, Indiana. The North American Van Lines trademark is considered one of the most valuable brand names in the moving industry and, in independent research, the company consistently ranks among the top van lines in terms of brand recognition and customer satisfaction.
For more information contact:
Valley Transportation Group
6652 W. Buckeye Rd.
Phoenix, AZ 85043
Tel: 602.252.6531
Fax: 623.936.2681
E-Mail: info@valleynorthamerican.com