Echo Global Logistics to Acquire Command Transportation
Echo has obtained commitments from Morgan Stanley, Credit Suisse and PNC of up to
By bringing together the strengths of Echo and Command, this transaction will create a leading provider of technology-enabled transportation management solutions with enhanced scale in the TL market. In 2014, Echo and Command had combined revenue of
Waggoner continued, "Together with Command, we will significantly enhance our national scale and density in the highly fragmented TL market. We will also leverage the unique technology of both companies to continue offering best-in-class services and comprehensive solutions that make our companies the provider of choice for our respective clients. Importantly, as we merge our cultures together, we will be supported by the industry's most talented transportation professionals, and the combination will provide greater career development and advancement opportunities for employees. This transaction is about growth for our company, our clients and our people. We look forward to working closely with
Loeb said, "This is an exciting step forward for Command's clients and employees. This combination is a logical and compelling way to provide our clients with an expanded carrier network, multi-modal solutions, and a robust platform to provide managed transportation services. Importantly, we are joining a strong organization that shares our commitment to excellence, innovation and best-in-class client service. I look forward to working together with Doug and the Echo team to achieve a seamless combination while driving the continued growth of our combined businesses."
Compelling Strategic Rationale for the Acquisition
- Critical Scale Enhances Leading Market Position: Command brings to Echo increased TL network density with a highly complementary TL network. Command's significant relationships and capabilities in TL will allow the combined company to offer greater capacity and a broader network to both transactional and Managed Transportation clients. While both companies provide TL services nationally, Command's network is more focused in the Eastern and Southeastern regions of the U.S. and Echo's network is more focused west of the Mississippi River. The complementary nature of each company's network will create greater national coverage which will benefit the clients of the combined business. Echo and Command have limited customer overlap.
- Experienced Workforce and Aligned Management: This transaction brings together two of the strongest leadership teams in the industry, with more than 150 years of combined experience and a commitment to driving deep client and carrier relationships. The combined company will have a best-in-class sales force with common goals focused on customer service and maintaining high standards. Importantly, the strategic nature of the transaction is expected to provide new opportunities for growth and career advancement for employees of the combined company.
- Technology Leadership: The transaction will combine industry-leading proprietary technology platforms that include Echo's breadth and multimodal capabilities with Command's customized and proprietary TL platforms and expertise. Echo will integrate some of Command's technology into its platform, and Command will migrate to the Echo platform over time.
- Seamless Integration: Echo and Command share a young, energetic and collegial atmosphere and a strong customer and carrier-centric culture. Echo and Command expect that their common cultures, similar processes and business models, and headquarters in
Chicagowill allow for a seamless integration. Further, the Echo management team has significant experience successfully integrating acquisitions.
- Accretive Financially: Following the completion of the transaction, Echo expects to have a strong financial profile with a solid balance sheet, enhanced cash flow and significant growth prospects. Echo will have the ability to realize revenue, cost, operational and purchasing power synergies. In addition, an expanded customer base will provide significant cross-selling opportunities, while the talent acquired, including a long-tenured sales force, will further drive increased revenue. Echo expects that the transaction will be accretive to earnings per share.
Brand, Headquarters and Leadership
Following the transaction, Command will be a wholly-owned subsidiary of Echo, and the combined company will be called Echo and remain headquartered in
Both companies have highly experienced leadership teams that are leaders in the technology enabled transportation management industry. Upon completion of the transaction,
The transaction is expected to close in the second quarter of 2015 and is subject to, among other things, the expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, as well as other customary closing conditions.
Morgan Stanley & Co. LLC is serving as financial advisor to Echo and
Echo First Quarter 2015 Financial Results
Conference Call and Webcast
A conference call, with accompanying presentation slides, will be broadcast live on
Echo services clients across a wide range of industries, such as manufacturing, construction, consumer products and retail. For more information on Echo, visit: www.echo.com.
Command is a leader in the logistics industry and is ranked within the nation's Top 25 Freight Brokerage Firms. With over 550 employees, the company is headquartered in
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of terms such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target" or the negative of these terms or other comparable terms. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. These statements are subject
to a variety of risks and uncertainties that could cause Echo's actual results, performance or achievements to differ materially from the statements contained in this release. For a discussion of important factors that could affect Echo's actual results, please refer to Echo's
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