North American Van Lines, Allied Van Lines to merge

NEW YORK (Sept. 14, 1999) — Household moving giants North American Van Lines and Allied Van Lines plan to merge, creating a formidable global competitor with locations in 36 countries and worldwide revenues of more than $2 billion US.

The transaction, orchestrated by North American’s parent, Clayton, Dubilier & Rice Inc. (CD&R), is valued at $450 million, the companies said. The North American and Allied brand names, among the most recognizable in the moving business, will be retained, but the combined business will be based in Fort Wayne, Ind., with offices in Naperville, Ill.; London, England; and Melbourne, Australia.

NFC plc, Allied’s parent, will receive $400 million in cash, approximately $25 million in preferred stock and common stock representing approximately 20% of the capital stock of North American’s parent company, NA Holding Corp., plus warrants to acquire an additional 10 percent of the common shares outstanding. An investment fund managed by CD&R, and management and agents will own the balance of the combined company.

James W. Rogers, a principal of CD&R, will serve as the new company’s chairman, while R. Barry Uber, North American Van Lines’ president and CEO, will serve as CEO. Michael Fergus, the president and CEO of Allied Van Lines will continue to lead the Allied Van Lines business in the U.S. and Canada.

“We will have the size, scope and management leadership to provide the most innovative service offerings in the business,” said Fergus. “I’m excited about the opportunities this merger provides for all of our stakeholders.”

Established in 1933, Fort Wayne, Ind.-based North American Van Lines operates through a network of agents with more than 780 locations in the U.S. and Canada and 350 locations overseas.

Allied Van Lines was founded in 1928 and has more than 550 agent locations in North America and representatives in more than 130 countries worldwide. Allied Van Lines’ moving service business consists of Allied Van Lines, Pickfords, Allied International and Allied Pickfords. The company is headquartered in Naperville, Ill.