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EXHIBIT 99.1
EGL, INC. ANNOUNCES COMPLETION OF CIRCLE INTERNATIONAL GROUP, INC. MERGER
MERGER CREATES WORLD'S PREMIERE HEAVY-WEIGHT FREIGHT FORWARDER
HOUSTON, Texas, October 2, 2000. EGL, Inc. (NASDAQ:EAGL), the nation's largest
domestic heavy-weight air freight forwarder, today announced that it completed
its previously-announced combination with Circle International Group, Inc. The
stock-for-stock transaction broadens the global service capabilities offered to
EGL and Circle customers through a combined worldwide network of almost 400
facilities and more than 8,000 employees. Circle is now a wholly-owned
subsidiary of EGL.
Based upon EGL's closing stock price on Friday, September 29, the combined
companies' market capitalization is approximately $1.5 billion.
In the merger, each of Circle's approximately 17.93 million shares was converted
into the right to receive one share of EGL common stock. The transaction was
accounted for as a pooling of interests, and was effected on a tax-free basis to
shareholders. Former Circle shareholders now own approximately 38 percent of the
outstanding EGL shares, with the remaining 62 percent continuing to be owned by
EGL's pre-merger shareholders.
James R. Crane will lead the management team as chairman and CEO of the combined
companies, which will operate under the name EGL Eagle Global Logistics. Peter
Gibert, formerly interim chairman and CEO of Circle International Group, Inc.,
has joined EGL's board of directors.
"Our goal of creating a one-stop worldwide logistics solutions company has been
achieved through the merger with Circle International," said Crane. "The two
organizations are an excellent fit, with minimal overlap, complementary services
and excellent operating leverage opportunities. EGL's strong sales and marketing
organization and Circle's international operations expertise combine to forge a
company with an unparalleled ability to provide customized freight transport and
complete logistics solutions for our customers."
"This combination has positioned EGL as a strong global competitor, with a
comprehensive transportation and service network both in North America and
internationally," said Crane. "This merger represents a tremendous value
proposition for our customers - with one call they access EGL's unique North
America expedited air and ground freight network and Circle's extensive
international air and ocean freight network and customs brokerage capabilities.
We offer our customers a proven system, innovative solutions and a track record
of excellent service."
Crane continued: "We welcome our new employees and our new customers to the EGL
family, and look forward to exploring the opportunities that lay ahead.
Integrating the two companies is going smoothly, and our industry-experienced
integration team is focused
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on completing the process quickly and successfully. Throughout the integration
process and beyond we are committed, as always, to providing our customers with
the highest levels of service and technology in our industry."
Houston-based EGL, Inc. operates under the name EGL Eagle Global Logistics. EGL
is a leading global transportation, supply chain management and information
services company dedicated to providing superior flexibility and fewer shipping
restrictions on a price competitive basis. Its network of almost 400 terminals
in 100 countries features state-of-the-art information systems designed to
maximize cargo management efficiency and customer satisfaction. With calendar
pro forma 1999 revenues exceeding $1.4 billion, EGL's services include air and
ocean freight forwarding, customs brokerage, local pickup and delivery service,
materials management, warehousing, trade facilitation and procurement, and
integrated logistics and supply chain management services. The Company's shares
are traded on the NASDAQ National Market under the symbol "EAGL."
FORWARD LOOKING STATEMENT
The statements in this press release regarding effects or results of the merger,
future opportunities, future growth, results and expansion plans, future
business, operations or results and any other statements, which are not
historical facts, are forward looking statements. Such statements involve risks
and uncertainties, including, but not limited to, competition, costs and
difficulties relating to the Circle merger and the integration of Circle,
general economic conditions, ability to manage and continue growth, risks of
international operations and other factors detailed in the Company's filings
with the Securities and Exchange Commission. Should one or more of these risks
or uncertainties materialize, or should underlying assumptions prove incorrect,
actual outcomes may vary materially from those indicated.
For more information about Eagle: Visit Eagle on the Internet at
http://www.eaglegl.com Contact Eagle Investor Relations via the Internet at
[email protected] Or by telephone at 281/618-3428, Michael Slaughter, V-P
Finance, North America.
