Persistence has paid off for Apollo Management LP, which has won the two-month battle for control of logistics firm EGL Inc. The Houston target said this morning that it has signed a $47.50 per share, $2 billion take-private deal with U.K. logistics specialist Ceva Group plc, which is owned by Apollo.
A bidding war broke out in late March after EGL agreed to go private in a $38 per share deal led by its chairman and CEO James Crane, with backing from Centerbridge Partners LP and the Woodbridge Co. Ltd. Apollo took the unusual step of suing the target, claiming it had been unfairly excluded from the sale process.
EGL said Thursday that it has paid a $30 million breakup fee to the Crane consortium.
Crane owns 18% of the company, so he stands to make a hefty profit selling his stake into the LBO. The stock was trading under $30 a share when an earlier $36 take-private deal was announced in early January.
A full story will be up later this afternoon.—John Morris
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