RANCHO DOMINGUEZ, Calif., April 27, 2007 (PRIME NEWSWIRE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today announced the signing of definitive agreements to acquire controlling interests of Newlog Ltd. and certain assets, including goodwill, of Transclal Trade Ltd., two leading providers of freight forwarding services in Israel that currently operate as UTi's only airfreight and ocean freight forwarding agents in Israel. Upon completion of the transactions, the surviving consolidated entity will operate under the UTi Israel trade name and will be positioned as one of the top three forwarding and logistics companies in Israel. The pending transactions are subject to various closing conditions, including the requisite regulatory anti-trust approvals, and are expected to close within 60 to 90 days.
Newlog Ltd. is a subsidiary of Zim Integrated Shipping Services Ltd., a leading global container shipping line. Under the agreements, Newlog will be merged with the company's wholly-owned Israeli operations, UTi Eilat Overseas Ltd. Terms for the Newlog transaction were not disclosed.
The merged entity, which will be 75% owned by UTi and 25% owned by Zim, will then acquire 100% of the goodwill, trade name and certain related assets and liabilities of Transclal Trade Ltd. (Tel Aviv Stock Exchange:TRSC) for the purchase price of $34-37.5 million cash.
Mordechai ("Moti") Friedman, Transclal's current chief executive officer and majority shareholder, will become chief executive officer of the newly formed entity. Dr. Yoram Sebba, Zim's vice chairman, also will join the newly formed entity as chairman, and Shlomo Sharon, Transclal's current senior vice president, will become vice chairman of the new entity.
"We are very pleased to be moving forward with these transactions, which will create a stronger regional organization for the benefit of all of our clients' worldwide trading to and from Israel," said John Hextall, chief operating officer of UTi Worldwide. "We have had good experiences in the past with UTi Eilat working cohesively with Newlog and Transclal separately, and once approved the integration of these three businesses will proceed quickly and should be seamless for all our clients."
About UTi Worldwide
UTi Worldwide Inc. is an international, non-asset-based global integrated logistics company providing air and ocean freight forwarding, contract logistics, customs brokerage, distribution, inbound logistics, truckload brokerage and other supply chain management services. The company serves a large and diverse base of global and local companies, including clients operating in industries with unique supply chain requirements such as the pharmaceutical, retail, apparel, chemical, automotive and technology industries. The company seeks to use its global network, proprietary information technology systems, relationships with transportation providers and expertise in outsourced logistics services to deliver competitive advantage to each of its clients' global supply chains.
Safe Harbor Statement
Certain statements in this news release may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company intends that all such statements be subject to the "safe-harbor" provisions contained in those sections. Such statements may include, but are not limited to, integration risks associated with the Newlog and Transclal acquisitions, satisfaction of various closing conditions and receipt of all regulatory approvals, including the requisite anti-trust approvals, and any other statements, which are not historical facts. Many important factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements, including possible changes to the anticipated transaction structure, conditions and terms (including price), the company's ability to successfully reach an agreement with the other parties to the contemplated transactions and even if such an agreement is reached, the satisfaction of closing conditions and the actual closing of the transactions contemplated thereby, increased competition; integration risks associated with acquisitions; the effects of changes in foreign exchange rates; changes in the company's effective tax rates; industry consolidation making it more difficult to compete against larger companies; general economic, political and market conditions, including inventory build-up, economic slowdowns and consumer confidence; work stoppages or slowdowns or other material interruptions in transportation services; risks of international operations; the success and effects of new strategies; disruptions caused by conflicts, wars and terrorism; and the other risks and uncertainties described in the company's filings with the Securities and Exchange Commission. Although UTi believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by UTi or any other person that UTi's objectives or plans will be achieved or that the contemplated transactions will be completed. The historical results achieved by the company are not necessarily indicative of its future prospects. UTi undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.