SUPERVALU Completes Tender Offer for Total Logistics, Inc.
February 07 2005 - 8:01AM
PR Newswire (US)
SUPERVALU Completes Tender Offer for Total Logistics, Inc.
Acquisition Gives SUPERVALU Significant Foothold in Third Party
Logistics Market MINNEAPOLIS, Feb. 7 /PRNewswire-FirstCall/ --
SUPERVALU INC. (NYSE:SVU) announced today the successful completion
of the cash tender offer for all outstanding shares of common stock
of Total Logistics, Inc. (NASDAQ:TLCX), an industry-leading
national provider of integrated third-party logistics services and
manufacturer of premier refrigeration systems. The tender offer,
which commenced on January 7, 2005, expired at 12:00 midnight EST
on Friday, February 4, 2005. A total of approximately 5,449,500
shares of Total Logistics common stock were validly tendered and
not withdrawn prior to the expiration of the offer, representing
approximately 98.5 percent of the outstanding shares of Total
Logistics. SUPERVALU has accepted these shares and payment will be
made promptly. SUPERVALU expects to complete the acquisition of
Total Logistics today through a short-form merger in which shares
of common stock not purchased in the tender offer will be converted
into the right to receive $28.50 per share in cash, without
interest. A letter of transmittal to be used for surrendering
certificates in exchange for the cash will be sent to holders who
did not tender their shares in the offer. The aggregate transaction
value is approximately $234 million, including assumed debt of
approximately $69 million and transaction expenses. SUPERVALU
expects the acquisition to be slightly accretive to fiscal year
2006. The acquisition consolidates Total Logistics' and SUPERVALU's
established third-party logistics businesses, creating an expanded
platform and infrastructure from which the company will serve new
and existing customers with proven end-to-end supply chain
solutions. Jeff Noddle, chairman and CEO of SUPERVALU, stated: "We
are extremely pleased to complete this acquisition. Total Logistics
is a perfect fit with SUPERVALU's long-term strategic goals for our
third-party logistics business. SUPERVALU's strength, experience
and resources, combined with Total Logistics' solid customer base,
comprehensive supply chain services offering and critical mass,
enables us to offer an expanded suite of logistics solutions to
current and prospective customers -- not only in the food business
but in other industries as well." SUPERVALU's newly combined
third-party logistics business offers customers a broad suite of
services including warehouse management, transportation,
procurement, contract manufacturing and logistics engineering and
management services; it manages more than 30 facilities around the
country. The customer base consists of local, regional, national,
and international firms engaged in food and beverage manufacturing,
consumer and industrial product manufacturing, wholesale
distribution and retailing. The consolidated 3PL business unit will
report to Mike Jackson, SUPERVALU executive vice president, and
president and COO, distribution, who has guided the company's 3PL
efforts. The acquisition also brings SUPERVALU the capabilities of
Zero Zone, a successful niche manufacturer of refrigerated and
frozen display cases serving the grocery, convenience, dollar and
drug store chains. In addition, the company produces refrigeration
systems and racks to power and control the refrigeration systems,
electrical panels and stand-by power for both retail and industrial
applications. Zero Zone is known as a pioneer for innovations like
improved case lighting and energy efficiency. The Zero Zone
operation will report to Dave Boehnen, SUPERVALU executive vice
president. For the nine months ended Sept. 30, 2004, Total
Logistics, Inc. reported revenues of $253.3 million, up 25 percent.
Total Logistics, Inc. is a Milwaukee-based holding company; its two
wholly owned subsidiaries, Total Logistic Control (TLC) and Zero
Zone, employ a total of approximately 3,000 people. About SUPERVALU
INC. Celebrating its 135th year of fresh thinking, SUPERVALU INC.,
a Fortune 100 company, is one of the largest U.S. companies with
operations in grocery retail and supply chain services. With annual
revenues of approximately $20 billion, SUPERVALU holds leading
market share positions across the U.S. with its more than 1,500
retail grocery locations, including licensed Save-A-Lot locations.
With its Save-A-Lot format, the company holds the number one market
position in the extreme value grocery retail sector. Through
SUPERVALU's network of 24 strategically located distribution
centers, the company provides supply chain services and related
logistics support services to nearly 4,500 grocery retailers across
the nation. In addition, SUPERVALU's third-party logistics business
provides end-to-end supply chain management solutions that deliver
value for food and beverage manufacturers, consumer and industrial
product manufacturers, wholesale distribution companies and
retailers. SUPERVALU, together with TLC and Zero Zone, currently
has more than 58,000 employees. For more information about
SUPERVALU visit http://www.supervalu.com/ . DATASOURCE: SUPERVALU
INC. CONTACT: Media, Lynne High, +1-952-828-4515, or , or
Investors, Yolanda Scharton, +1-952-828-4540, or , both of
SUPERVALU INC. Web site: http://www.supervalu.com/
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