Express 1 Buyout

Steady Eddie

Veteran Expediter
Owner/Operator
Look for triming the fat. Heads will roll-bring me wine...more wine.....

Key word is investment- hey my 135 to 150 mil, I'll put myself in charge of my investment. I will trim management, I don't like a small town, lets move from Buchanan, buy some small carries, go for one big one, then sell it all. All while boddies pill up underfoot. Corp. chop shop. But, "It will be good for Express-1's customers"

Now all neg stuff has been said about this.....

I think It's about time. Saw it comming the last 2 years, (LOL-Check out XPO now, well openning bell Wed)

United Rentals, United Waste founder leads $150M Express-1 investment


http://www.businesswire.com/news/home/20110614006005/en/Bradley-S.-Jacobs-Lead-Equity-Investment-150

12 to 18 months from now

For Sale Express-1
Today only 250 million
 
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Steady Eddie

Veteran Expediter
Owner/Operator
Glad we got out when we did!:rolleyes:

LOL- 6 months you could be back in the fold. Remember how Con-Way Now drivers found out? One beep of the QC. "Just when you think you made it out, they pull you back in...." (The God Father)
 

jelliott

Veteran Expediter
Motor Carrier Executive
US Army
Well tomorrow is another interesting day in the world of expedite. :D

Hard to say what the new plan is. I know that no one gets in to any business unless they have plans to gain market share, grow the business and increase the value of their purchase. Nothing wrong with that. I predict we will see somewhat of a consolidation of the industry as money continues to move back into the merger and acquisition arena.
 
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OntarioVanMan

Retired Expediter
Owner/Operator
Well tomorrow is another interesting day in the world of expedite. :D

Hard to say what the new plan is. I know that no one gets in to any business unless they have plans to gain market share, grow the business and increase the value of their purchase. Nothing wrong with that. I predict we will see somewhat of a consolidation of the industry as money continues to move back into the merger and acquisition arena.

I think most of the real changes will be in the Concert Group and Bounce divisions...
 

Steady Eddie

Veteran Expediter
Owner/Operator
Well tomorrow is another interesting day in the world of expedite. :D

Hard to say what the new plan is. I know that no one gets in to any business unless they have plans to gain market share, grow the business and increase the value of their purchase. Nothing wrong with that. I predict we will see somewhat of a consolidation of the industry as money continues to move back into the merger and acquisition arena.

Yes, and no investor gets into any business without an exit plan as well. Investors you know. It would be different if another expedite company bought out E-1, business to business type of line. But now we have what looks good on paper must be a good deal way of thinking. As I have always said..." It's all about the revenue", when Wall Street is looking.
One thing for sure- It will be very good for the investors, it always is.

I'm no doctor, nor do I play one on TV, but I could manage a Hospital, for a little while anyways......

Gone are the "Good'O Boys Club" @ Express-1

In 1978 I said there will be 5 airlines left after de-regulation, We are almost there.
 

Falligator

Expert Expediter
Well...it sure isn't helping them move loads out of Mi any faster today. Lol

Posted with my Droid EO Forum App
 

purgoose10

Veteran Expediter
Look for a new recruiting station in Laredo.

I have not been to Laredo lately but my driver has. Something I did see and has been on my mind, when I was last there I saw 3 C/Vans parked in the back with no lettering. Pretty beat up rigs also. Anyway the 3 drivers were inside all speaking Spanish. I thought it was a little wild the way they were carrying on. On the way back to my rig I looked at their tags and they were all Texas tags.
My question is. Can someone who lives in old Mexico who has relatives who live across the border license a C/Van using their relatives address, get an American CDL and expedite.
I know this sounds wild but they really got me to thinking. The vans they were driving looked left over from the last flood but they did run.
 

Steady Eddie

Veteran Expediter
Owner/Operator
Is this a coincidence that the Express-1 buyout coincides with the US government opening up the border by the end of the month? Now the trips that the Express-1 Recruiters have been making to Laredo are making more sense. I bet we will see a new Express -1 recruiting office open up across the border in Mexico.

It was their Good-bye Tour-lol
 

jelliott

Veteran Expediter
Motor Carrier Executive
US Army
BANGALORE, June 14 (Reuters) - Entrepreneur and investor Bradley Jacobs and his private equity firm are to invest $150 million in Express-1 Expedited Solutions Inc (XPO.A), a third-party logistics provider, and aim to build "a multibillion-dollar" business over the next several years.

Jacobs, who will be the majority shareholder of Express-1, which has a market value of $72 million, said he plans to increase the business through acquisitions, adding he is looking at small and big companies in freight brokerage and freight forwarding.

"We're going to start off buying some small and medium-size companies but over time the plan is certainly buy some larger companies as well," he told Reuters in an interview.

"I've been meeting with roughly 100 acquisition candidates over the last two months and they are of all sizes, I've looked at companies as little as $10 million to $20 million in revenue, and I've looked at companies approaching $1 billion in revenue."

Jacobs has a solid track record in founding small companies and building them, through acquisitions, into market leaders.

In 1997, he started United Rentals (URI.N) and, some 250 acquisitions later, turned it into the world's largest equipment rental firm. Private equity firm Cerberus Capital Management offered $6.6 billion for the company in 2007, but this bid was later withdrawn.

United Rentals is currently valued at $1.37 billion.

Jacobs also founded United Waste Systems, a leading U.S. garbage collector, which he sold to a rival for about $2.5 billion in 1997.

Jacobs, hunting for targets to go build another large company this time around, looked at several industries including government services, healthcare and education before settling on transportation, attracted by consolidation opportunities in the highly fragmented sector.

To tackle the global logistics market, Jacobs will take over as CEO of Express-1 and sweep out current management. Only the chairman, Jim Martell, will remain on the board, Jacobs said.

The international freight forwarding market is estimated to be worth $150 billion, with the 10 largest firms combined having only a 40 percent market share.

"I want this to be a multibillion-dollar company within several years," Jacobs told Reuters. "The industry is big, and I'm planning on creating a very big company."

Jacobs said he may also switch Express-1's stock listing to Nasdaq from the Amex exchange.

Express-1 shares jumped more than 11 percent on Tuesday to a 4-month high of $2.44.

Senior management roles will change, Jacobs said, with current CEO Mike Welch staying on to help with the acquisition strategy.

The new investors will receive preferred stock, convertible into 43 million Express-1 shares at $1.75 each, and warrants to purchase an additional 43 million shares. The company will effect a 4:1 reverse stock split once the deal closes.

Jacobs Private Equity will own 71 percent of Express-1 once the deal closes and the preferred stock is converted and warrants exercised.

Deutsche Bank Securities and UBS Investment Bank advised Jacobs. BB&T Capital Markets were financial advisers to Express-1. (Reporting by A. Ananthalakshmi in Bangalore, additional reporting by Soyoung Kim in New York, Editing by Ian Geoghegan and Matthew Lewis)
 

OntarioVanMan

Retired Expediter
Owner/Operator
Wonder if the "expedited" division fits into his plan? Maybe he will spin it off....he talks about forwarders and brokerages....
 

chefdennis

Veteran Expediter
ovm wrote:

Wonder if the "expedited" division fits into his plan? Maybe he will spin it off....he talks about forwarders and brokerages....

With most any type of aquisition of a multi division corp, some divisions are usually cut loose....which ones will be seen as time goes on...but the expediting unit certainly could be a good pickup for a solid company that is looking to expand...
 

ATeam

Senior Member
Retired Expediter
A friend of mine talked to people at Express-1 yesterday. They denied the report that management is being swept out. They were aware of the report but said it was not true.

The most interesting thing I read in the news in various publications was, "The international freight forwarding market is estimated to be worth $150 billion, with the 10 largest firms combined having only a 40 percent market share."

In that context, Express-1 is a small part of the big company Jacobs intends to create. He is thinking about dozens if not hundreds of acquisitions to bring his dream into reality. He has done it before in other industries. It will be interesting to see what comes to be in the years ahead.

The future of expediting ain't what it used to be.
 
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