Clayton Dublier & Rice Announces the Creation of the Largest Relocation and Van Line Logistics Company in the World
North American Van Lines and Allied Van Lines Unite to Form Industry Leader
NEW YORK, November 19, 1999 -- Clayton, Dubilier & Rice, Inc. ("CD&R") today announced the completion of the merger between North American Van Lines and Allied Van Lines, creating the world's largest relocation and van line logistics company in a transaction valued at approximately $450 million. The new Company, which will be known as Allied Worldwide, will have operations in 36 countries, with more than 1,100 agents and worldwide revenues of more than $2 billion.
"These two companies are an excellent strategic fit. We will aggressively leverage their combined competitive strengths, maximize operational efficiencies and invest in technological innovation," said Jim Rogers, a principal of Clayton Dubilier & Rice who will serve as the Chairman of the new company. "We will bring together the best practices of both organizations to set a new industry standard that will benefit our network of agents and drivers, and of course, our collective customers."
Allied Worldwide will maintain its high profile brand names, which 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, New Zealand and Asia. Allied Worldwide will operate these brands as a holding company, with headquarters in Fort Wayne, Ind., and with executive offices in Naperville, Ill.; London, England; and Melbourne, Australia.
Jim Rogers, a principal of CD&R, will serve as Chairman of Allied Worldwide and R. Barry Uber, President and Chief Executive Officer of North American Van Lines, has been appointed the President and Chief Executive Officer. The Company announced that Jeffrey Kaczka, North American's Chief Financial Officer will become Chief Financial Officer of Allied Worldwide. Michael Fergus, President and Chief Executive Officer of Allied Van Lines, will become President of the Van Line Network, Allied Worldwide's residential relocation business. Julian Nicholls will continue to head up the operations of Pickfords and Allied Pickfords in Europe, and Kevin Pickford will continue to manage Allied Pickfords in Australia, New Zealand and Asia. Mike Gunkel will serve as Executive Vice President and General Manager of Logistics Solutions.
"We will deliver unmatched service to our customers on a worldwide basis," Barry Uber said. "Our strategy will be to build an organization that takes advantage of our global scale and innovative technology to provide customers and agents with clearly differentiated advantages."
Following the completion of the transaction, a fund managed by CD&R will own approximately 73 percent of the outstanding shares of the company while Allied's former parent, NFC plc [London Exchange: NFC], will own approximately 20 percent. Management and agents will own approximately 7 percent.
Clayton, Dubilier & Rice is one of the oldest and most respected private equity investment firms. With $5 billion of equity capital under management, the firm's distinguishing characteristic is its focus on identifying and capturing operational improvements in its portfolio companies. In addition to operational improvements, CD&R has initiated major mergers and acquisitions for its portfolio companies. For example, in 1987, the firm created the Uniroyal Goodrich Tire Company by combining the tire businesses of the Uniroyal Tire Company and B.F. Goodrich. In 1994, the firm orchestrated the merger of Van Kampen Merritt Companies and American Capital Management to create an industry leading money management firm. In 1998, the firm established Global Decisions Group, a financial and energy markets information provider, by combining McCarthy, Crisanti & Maffei and Cambridge Research Associates. A fund managed by CD&R originally purchased North American Van Lines on March 30, 1998 from Norfolk Southern Corporation. Since its founding in 1978, CD&R has invested in 30 companies with aggregate annual sales of more than $20 billion, including such well know brand names as Kinko's, Alliant Foodservice, and Lexmark International, among other leading companies. (http://www.cdr-inc.com)
Allied Worldwide is a leader in both relocations and van line logistics services for high value and special products. The North American, Allied, and Pickfords trademarks are considered among the most valuable brand names in the moving industry and, in independent research, these brands consistently ranks among the top van lines in terms of brand recognition and customer satisfaction.
Thomas C. Franco
Joseph W. McDonnell
Broadgate Consultants, Inc.