FOR IMMEDIATE RELEASE:
BG Strategic Advisors Announces the
Closing of the Sale of Unicity to PBB Global Logistics
March 8, 2005 (CAMBRIDGE, MASSACHUSETTS) - BG
Strategic Advisors announced today that Unicity Integrated
Logistics, Inc. ("UIL") and Unicity Customs
Brokerage, Inc. ("UCB"), referred to jointly
as "Unicity," have been sold to PBB Global
Logistics. The purchase price was $42 million plus an
additional payment of up to $3 million. BG Strategic
Advisors acted as the exclusive financial advisor to
Unicity in this transaction.
UIL is a pioneer in creating and providing innovative
strategies and systems that minimize supply chain costs
by providing international clients seamless access to
the Canadian market. UCS is one of the top 10 Customs
Brokers in Canada. Unicity has approximately 250 employees
in more than 10 locations across North America, including
major operations in Montreal, Mississauga and Winnipeg.
The purchase will provide additional supply chain solution
capabilities to PBB's existing logistics service offering
through UIL's cross-border deconsolidation, consolidation
and onforwarding capabilities. UCS strengthens PBB's
customs presence in Western Canada, and augments PBB's
existing trade and regulatory service offering.
The transaction will enhance PBB's leading market position
in supplying cross-border supply chain solutions for
its customers in Canada, United States and Mexico, and
further diversifies PBB's mix of services and customers.
Including Unicity, PBB will employ approximately 1,350
people in 90 locations located at border crossings and
air / sea locations across North America and China.
On a combined basis, pro forma gross revenue, pro forma
net revenue and pro forma normalized EBITDA , were approximately
$450 million, $132 million and $25.4 million, respectively
for the 12-month period ending September 30, 2004 (these
pro forma results include the financial results of Clarke
Logistics, acquired in July 2004, for the entire twelve
month period). Estimated combined normalized EBITDA
does not take any potential cost synergies into account.
The transaction is expected to be immediately accretive
to cash available for distribution and will further
enhance the stability of PBB's cash flow. Management
estimates that based on the 12-month period ending September
30, 2004, the transaction is approximately $0.13 or
7% accretive to cash available for distribution.
"There are very few customs brokers in Canada
of UCS's size and capability. We are very excited that
we have seized this unique opportunity," said Mike
Scott, PBB President and Chief Executive Officer. "The
acquisition of UIL's strategic logistics capabilities
demonstrates our commitment to improving our ability
to serve our customers' evolving and increasingly sophisticated
supply chain management needs. In addition, we are strengthening
our presence in Western Canada in our core business
"PBB offers an excellent fit for our company,"
said Ken Kotowich, President and C.E.O. of UIL. "Their
values and approach to business and attention to customer
service complement ours. We believe our solution capability
and PBB's global reach provide an opportunity to offer
a more comprehensive package of logistics solutions
to a broad customer base."
About BG Strategic Advisors
BG Strategic Advisors (www.bgstrategicadvisors.com)
is a leading global investment banking and strategy
consulting firm focused on the supply chain sector.
The firm specializes in providing CEOs in the transportation,
warehousing and logistics industry with the tools to
maximize value. For more information, please contact
Managing Director Benjamin Gordon at (561) 207-7600