Velocity Express Completes Acquisition of CD&L, Inc., Creates Market Leader in Time Definite Logistics Solutions; Acquisition t
18 Août 2006 - 2:00PM
Business Wire
Over $38 Million in Cost Savings Anticipated over Next 18 Months
Velocity Express Corporation (NASDAQ: VEXP) and CD&L, Inc.
(AMEX:CDV) announced the acquisition of all of the issued and
outstanding shares of CD&L by Velocity Express for cash
consideration of $3.00 per share. Shareholders of CD&L approved
the acquisition at a special meeting of shareholders held
yesterday. As a result, the stock of CD&L will cease trading on
the American Stock Exchange. The acquisition creates the largest
time definite logistics company in North America, with more than
$440 million in annual revenues and 5,500 independent contractor
drivers, operating from 150 locations in leading markets across the
United States and Canada. The combination of CD&L and Velocity
Express is expected to provide important strategic and financial
benefits: -- Increased market coverage: CD&L and Velocity
combined routes will provide customers with broader reach and
guaranteed delivery time -- Unmatched customer programs combining
proprietary track and trace, and electronic signature capture
technology will provide customers with the industry's best service
offering -- A diverse and expanded customer base across multiple
market sectors, including: healthcare, retail, service parts
replenishment and financial industries, among others. -- A
strengthening of Velocity's already excellent managerial team "This
is an exciting transformative acquisition that brings together two
complementary businesses to create the leader in the time definite
local delivery marketplace," stated Vincent Wasik, Chairman and CEO
of Velocity Express. "The opportunity before us is considerable.
This is a multi-billion dollar market that remains fragmented and
underserved. The acquisition of CD&L accelerates Velocity
Express' strategy of creating a potent North American brand while
retaining our local focus. By leveraging the best practices of each
company across the combined business, we are positioned to deliver
enhanced service to Fortune 500 customers and small companies
alike, providing us with the opportunity for what we believe can be
exciting future organic growth." "We are on track to execute
quickly against a clearly defined strategic integration plan,"
added Mr. Wasik. "An outstanding team, comprised of members of
Velocity Express, CD&L, and consultants from Alvarez &
Marsal, has been hard at work and have identified over $38 million
in value creation which we expect to realize over the next 18
months through operating efficiencies and elimination of duplicate
costs. As just one example, implementation of Velocity's
proprietary track and trace and route management technology for
independent contractors should help bring CD&L's gross margins
in line with our own, while improving customer service and
flexibility." The combined entity will operate under the Velocity
Express name and be headquartered in Westport, CT. Velocity Express
Corporation Velocity Express has one of the largest time definite
nationwide delivery networks, providing a national footprint for
customers desiring same day service throughout the United States.
The Company's services are supported by a customer-focused
technology infrastructure, providing customers with the reliability
and information they need to manage their transportation and
logistics systems, including a proprietary package tracking system
that enables customers to view the status of any package via a
flexible web reporting system. Visit www.velocityexpress.com for
more information. About CD&L, Inc. CD&L, Inc. operates from
98 locations in 25 states, including operations in 28 customer
owned facilities, providing last mile delivery solutions to various
industries. The company has over 1,500 employees and utilizes
approximately 2,900 independent contractor drivers to provide
time-sensitive delivery services to thousands of customers across
the country. For purposes of the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995, readers should be
aware that this press release includes certain "forward-looking
statements" that involve risks and uncertainties that could cause
actual results to differ materially. These statements are typically
preceded by words such as "believes," "expects," "anticipates,"
"intends," "will," "may," "should," or similar expressions. Such
statements are based upon, among other things, assumptions made by,
and information currently available to, management, including
management's own knowledge and assessment of the industry in which
Velocity and CD&L operate. Factors that may cause actual
results to differ materially from those expressed or implied by
such forward-looking statements include, but are not limited to,
the risk of successful integration of the two companies, the
ability to achieve enhanced route density, the ability to retain
customers, independent contractors and employees, the ability to
achieve operating efficiencies and eliminate duplicate costs, the
ability to double the size of the company, as well as the risks and
uncertainties detailed from time to time in the Velocity Express
and CD&L's filings with the Securities and Exchange Commission,
including their most recently filed reports on Form 10-Q and 10-K.
Velocity Express and CD&L disclaim any obligations to update
any forward-looking statement as a result of developments occurring
after the date of this press release or to conform them to actual
results.
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