RANCHO DOMINGUEZ, Calif., Jan. 25, 2002 (PRIMEZONE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today announced the acquisition of Grupo SLI & Union, S.L, (SLI) a warehousing and logistics services provider headquartered in Madrid, Spain with 20 offices throughout Spain and Portugal. The acquisition is expected to be immediately accretive to UTi's earnings.
UTi acquired the entire issued share capital of SLI holding company and its subsidiaries for an initial cash payment of approximately $9 million. In addition, UTi will issue a combination of cash and ordinary shares in installments over the next five years based on SLI's future earnings. Based on these expected future performance levels, the acquisition is valued between $25 and $30 million.
SLI was an independent agent for UTi providing forwarding services for the UTi global network. With 2001 net revenues of approximately $17 million, and 2.2 million square feet of warehouse space in various locations throughout Spain and Portugal, SLI now becomes one of the major UTi operations in Europe. With the acquisition, UTi will have approximately 3.0 million square feet of warehouse space in Europe. "We welcome SLI and its superb management team to the UTi Worldwide global network," said Peter Thorrington, UTi Worldwide's chief operating officer. "The acquisition bolsters our strategy to deepen our warehousing and logistics expertise and brings to us the experienced management team led by Carlos and Jose-Maria Escario, who will remain as joint managing directors of the Spanish company."
"We are pleased to become part of UTi Worldwide, a world leader in delivering technology-based supply chain management tools to its freight forwarding and logistics customers," said Carlos Escario, joint managing director of SLI. "We have worked well together for many years and are excited to bring our warehousing expertise to support UTi's vision and long-term strategy to provide complete outsourcing services to our combined clients."
About UTi Worldwide
UTi Worldwide Inc. is a global, non-asset based supply chain management business providing supply chain logistics services and planning and optimization solutions. With the acquisition of SLI, UTi Worldwide's network includes more than 200 company-owned offices in 52 countries, and together with agents in another 92, serves 142 countries. The company's services include freight forwarding, customs brokerage and warehousing services such as the coordination of shipping and the storage of raw materials, supplies, components and finished goods. Through its supply chain planning and optimization services, the company assists clients in designing and implementing systems that improve the predictability and visibility and reduce the overall cost of their supply chains. The company has a global and diverse business customer base ranging from large multinational enterprises to smaller local businesses. For more information about the company visit its Web site at www.go2uti.com.
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 acquisition, the company's discussion of its strategies to provide complete outsourcing solutions, 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 general economic, political and market conditions, increased competition, integration risks associated with acquisitions, the effects of changes in foreign exchange rates, increases in the company's effective tax rates, industry consolidation making it more difficult to compete against larger companies, risks of international operations, the success and effects of new strategies, disruptions caused by conflicts, wars and terrorism, shortages in available cargo and container space and capacity constraints and changes by carriers in scheduling, frequency of services, cost increases and other factors not in the company's control, and the other risks and uncertainties described in the company's filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, actual results may vary materially from those indicated. Although UTi believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be 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. 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.