GREATWIDE LOGISTICS RECEIVES APPROVAL OF
ACQUISITION BY INVESTOR GROUP
Current Debt will be Reduced by $478 Million, or 77 Percent
Transaction to Enhance Greatwide’s Competitiveness and Financial Strength;
Position Company for Continued Growth and Profitability
DALLAS (January 14, 2009) – Greatwide Logistics Services, a national provider of non-asset-based transportation and third-party logistics services, today announced that it has obtained Court approval for the acquisition of Greatwide by an investor group that includes affiliates of Centerbridge Partners and The D. E. Shaw Group. The company expects to close the transaction within the next 30 days.
Upon completion of the transaction, Greatwide’s current debt will be reduced by $478 million, or 77 percent. As previously announced, the transaction will significantly reduce Greatwide’s debt burden, enhance its competitiveness and financial strength, and position the company for continued growth and profitability.
Raymond B. Greer, President and Chief Executive Officer of Greatwide, said, “We are pleased to receive approval of this transaction, which will strengthen Greatwide’s capital structure and enhance our flexibility to continue to invest and grow. We are also pleased to have received this vote of confidence from our purchasers, who are familiar with the company and our prospects for the future. Our ability to restructure the company’s finances and to gain approval for this transaction in fewer than 100 days is a testament to the hard work and dedication of the men and women of Greatwide as well as our purchasers. I appreciate the commitment to the company by our teams throughout this process.”
Mr. Greer added, “Many transport companies are struggling in today’s historic economic downturn and must adjust to the new realities of today’s market. At Greatwide, we have taken very decisive action and expect to emerge from this process as one of the healthier companies in the industry. Greatwide’s enhanced strength and flexibility positions us to continue investing for the future while delivering outstanding service for our customers. We look forward to capitalizing on the competitive advantage afforded by our success in this process.”
Additional information about Greatwide’s restructuring is available at the company’s website www.greatwide.com under the News & Media section.
Greatwide was advised by Willkie Farr & Gallagher (legal counsel) and Miller Buckfire (investment banker). Loughlin Meghji + Co. served as Greatwide's advisor.
About Greatwide Logistics Services
Founded in Dallas, Texas in 2000, Greatwide Logistics Services is a privately held, $1 billion third-party logistics services company. The company is ranked No. 22 on the Commercial Carrier Journal 250 and No. 24 on the Traffic World Top 100 lists. The company has four primary lines of business: dedicated transport, truckload management, freight brokerage and distribution logistics. Greatwide is one of the nation's leading non-asset-based logistics providers of transportation, third-party logistics, warehouse/distribution and freight brokerage solutions. For more information, visit www.greatwide.com.