Ozburn-Hessey Logistics
Ozburn-Hessey Logistics

Welsh Carson Agrees to Acquire Majority Stake in Ozburn-Hessey Logistics

Welsh, Carson, Anderson & Stowe, a New York-based private equity investor, has reached an agreement to acquire a majority interest in Ozburn-Hessey Logistics (OHL), the nation's largest privately held third party logistics (3PL) provider, the company announced today. Under Agreement, OHL Will Remain Nation's Largest Privately Held 3PL, Continue Acquisition Strategy.

Nashville, TN, June 27, 2005 --(PR.com)-- Welsh, Carson, Anderson & Stowe, a New York-based private equity investor, has reached an agreement to acquire a majority interest in Ozburn-Hessey Logistics (OHL), the nation's largest privately held third party logistics (3PL) provider, the company announced today.

The agreement will allow OHL to continue to pursue its operating and growth strategies, which have contributed to double-digit annual revenue growth in each of the past three years, according to Scott McWilliams, CEO of OHL.  "Welsh Carson has a strong track record of investing in and managing successful companies in dynamic industries and we are excited to have them as our largest equity partner," McWilliams said.

In its 26-year history, Welsh, Carson, Anderson & Stowe (WCAS) has focused its investment activities on the information & business services and healthcare sectors.  Its investments have included a number of high-profile companies with a significant Nashville presence such as Comdata, Quorum Health Group, Ardent Health Services, and OrthoLink.

With the acquisition, Ozburn-Hessey Logistics will continue to focus on delivering value to its customers and creating opportunities for its employees, McWilliams noted.  "This event will allow us to continue to aggressively pursue acquisitions throughout North America in the areas of contract warehousing, transportation management, and freight forwarding," he stated.

While the existing management team will remain in place, Ozburn-Hessey Logistics will add Jim Martell to its board as "non-executive" chairman and as an investor, McWilliams said.  Martell, a veteran of more than 20 years in transportation and logistics, is the former CEO of SmartMail Services, a $200 million company and one of the leading flat-sized mail and parcel delivery companies in North America.

"OHL has assembled a highly talented and experienced team of associates and built a network of strategically-located facilities that stretches from border to border and coast to coast.  We believe there is tremendous opportunity to build upon those strengths in a way that leverages advantages for existing and potential customers, associates and investors," Martell stated.

A 54-year old company founded in Nashville, Ozburn-Hessey Logistics operates 18 multi-client warehouse campuses and nearly 100 total facilities in 20 states.  The company delivers customers a menu of supply chain services that includes fulfillment, service parts management, return logistics, cross docking and pool distribution.  In total, OHL now manages over 19 million square feet of warehouse space nationwide and offers comprehensive transportation of parcel, truckload and less-than-truckload shipments.

Ozburn-Hessey Logistics' corporate headquarters will remain in the Nashville area, where the company has over 325 of its 2,700 total employees.  Other OHL facilities are located in St. Louis (MO), Reno (NV), Atlanta (GA), Chicago (IL), Dallas (TX), Los Angeles (CA), Seattle (WA), Kansas City (MO), Houston (TX), Miami (FL), Indianapolis (IN), Omaha (NE), Memphis (TN), Phoenix (AZ), Knoxville (TN), Richmond (VA), Newark (NJ), Toledo (OH), Jacksonville (FL), Raleigh (NC), Chambersburg (PA), Madison (WI), Fond du Lac (WI), Laredo (TX), Lima (OH) and Columbia (SC).

Welsh, Carson, Anderson & Stowe is the nation's largest private equity investor in information & business services and healthcare.  Since its founding in 1979, the firm has raised 14 investment partnerships with total capital over $13 billion and has invested in over 135 companies, whose growth has been supplemented with over 650 follow-on acquisitions.

OHL was advised by Bear Stearns in this transaction, and WCAS by Morgan Stanley and Legg Mason.

Contact
NEWS: OH Logistics
MEDIA CONTACT: Phil Martin
TELEPHONE: (615) 268-8000
FAX: (615) 254-7032
EMAIL: pmartin@mercatuscom.com

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