EGL, Circle anounce merger

By Staff -- Logistics Management, 8/1/2000

If shareholders and regulators agree, freight forwarders EGL Inc. and Circle International Group Inc. will merge this fall into a $1.5 billion provider of domestic and international transportation services, logistics services, and customs brokerage to more than 10,000 customers. Under the deal's terms, San Francisco-based Circle will become a wholly owned subsidiary of Houston's EGL, which was formerly Eagle USA Airfreight.

EGL operates 92 airfreight terminals in nine countries, 79 of them in North America. Circle provides international air and ocean transportation service, customs brokerage, and 3PL services through more than 300 logistics centers in more than 100 countries. The combined entity would provide services through a worldwide network of almost 400 facilities with more than 8,300 employees.

James R. Crane will continue as CEO of EGL and will head the combined company's management team. Circle's CEO, Peter Gibert, will join EGL's board of directors following the transaction.

Circle's 17 million shares of common stock will be converted into EGL common stock on a one-to-one ratio. When the merger is complete, EGL's shareholders will own approximately 63 percent and Circle shareholders will own approximately 37 percent of the combined company's outstanding shares. EGL will change its fiscal year end from Sept. 30 to Dec. 31 in order to facilitate the reporting requirements of the combined company and investment community comparisons with peer companies' results.