British Group to Buy Out Logistics Provider Mark VII

Mark VII Inc., an intermodal transportation and logistics company based in Memphis, Tenn., has agreed to a buyout by MSAS Global Logistics, a unit of Ocean Group PLC, for $23 a share in cash.

ased on 9.4 million shares outstanding, the offer is worth $217.3 million.

The board of Mark VII will recommend that shareholders accept the offer, which represents a 30% premium over the closing price of Mark VII shares on July 26. Chairman R.C. Matney said a merger with the London-based Ocean Group is in the best interests of customers, stockholders and employees.

The purchase expands services offered in the United States by MSAS and Ocean Group, which operates a number of international transportation firms, including Intexo BV, Marken Express, McGregor Cory, Cory Towage, Mercury Airfreight International and Cory International.

“The acquisition of Mark VII increases our sales in North America toward the $1.5 billion mark and provides the critical mass we have been working for as we seek to grow our service offering in this region,” said Mick Fountain, chief executive of MSAS’s Americas/Pacific operations in Hayward, Calif.

He said Mark VII will give the company a leading presence in the third-party logistics market and

rovide customers with additional supply chain management services.

“The existing Mark VII infrastructure will remain unchanged and run alongside out international, domestic and fashion logistics businesses,” he said.

Matney will remain with the organization at least through 2002, and existing management will continue to run the business, Fountain said.

Mark VII contracts with carriers for transportation of freight by rail, truck, ocean or air and provides advice to shippers on logistics services.

The company earned $9.7 million on gross revenue of $724.9 million in 1998.