The combined companies have locations in 36 countries, including 1,100 agents in North America. The combined company, which is expected to be a stronger global competitor, will be headquartered in Fort Wayne, IN. It will maintain executive offices in Naperville, IL, London, England, and Melbourne, Australia. North American says it intends to maintain the high profile brand names of both companies.
Under the terms of the merger agreement, NFC plc, Allied's parent company, 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% of the common shares outstanding. An investment fund managed by Clayton, Dubilier & Rice, and management and agents will own the balance of the combined company.
James W. Rogers, a principal of CD&R, will serve as Chairman of the combined company and R. Barry Uber, North American Van Lines' President and Chief Executive Officer, will continue as the Chief Executive Officer of the company. Michael Fergus, the President and Chief Executive Officer of Allied Van Lines will continue to lead the Allied Van Lines business in the U.S. and Canada.
CD&R is no stranger to initiating major mergers. In 1987, for instance, the firm created the Uniroyal Goodrich Tire Co. by combining the tire business of Uniroyal and B.F. Goodrich.