Daily News: July 31, 2014

Credit Suisse, Others to Fund XPO Logistics’ New Breed Buy


XPO Logistics announced that it has entered into a definitive agreement to acquire New Breed Holding Company. The company further announced that it has completed the acquisition of Atlantic Central Logistics (ACL).

On July 29, 2014, the company agreed to acquire New Breed for a purchase price of $615 million on a cash-free, debt-free basis, and assuming a normalized level of working capital. At the closing, New Breed’s chief executive officer Louis DeJoy will use $30 million of proceeds from the transaction to purchase restricted stock from the company.

The company has obtained commitments from Credit Suisse AG, Morgan Stanley Senior Funding, Citigroup and Deutsche Bank AG for a total of up to $645 million in senior secured term loan facilities to fund the New Breed transaction and general corporate purposes, including potential future acquisitions. The transaction is not conditioned on financing.

Credit Suisse Securities (USA) LLC is serving as financial advisor to XPO Logistics, and Wachtell, Lipton, Rosen & Katz is acting as legal advisor. Morgan Stanley & Co. LLC is serving as financial advisor to New Breed, and Willkie Farr & Gallagher LLP is acting as legal advisor.

New Breed specializes in services for omni-channel distribution, reverse logistics, transportation management, freight bill audit and payment, lean manufacturing support, aftermarket support and supply chain optimization.

On July 28, 2014, the company completed its acquisition of Atlantic Central Logistics for a cash purchase price of $36.5 million on a cash-free, debt-free basis, and excluding any working capital adjustments.

Founded in 1980, ACL provides last mile logistics through approximately 200 contracted carriers and 160 employees at 14 East Coast locations.

To read the entire news release, click here.