Oak Hill Capital Partners Signs Definitive Agreement to Sell GATX Logistics to APL Logistics

Business Wire, Jan 8, 2001

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 8, 2001

Oak Hill Capital Partners, L.P., a private equity investment group, and the Stephens Group, Inc. today announced they have signed a definitive agreement to sell Jacksonville, Florida-based GATX Logistics, Inc., to APL Logistics, Inc. APL Logistics is a wholly owned subsidiary of Singapore-based Neptune Orient Lines (NOL), a global company involved in transportation and logistics businesses. GATX Logistics is a value-added warehousing services and freight management company.

APL Logistics' $210 million acquisition of GATX Logistics creates a world-class logistics provider with global reach and an exceptionally broad range of service offerings. It includes the subsidiary GATX eLogistics, an e-commerce fulfillment services company launched in early 2000. The transaction is expected to close during the first quarter, following all standard and customary approvals.

GATX Logistics' leading market position and strong relationships with its Fortune 500 customer base makes it an important element in both the traditional third-party logistics services and e-commerce fulfillment chains. Several unsolicited proposals from a number of parties followed Oak Hill Capital Partners and Stephens' acquisition of GATX Logistics in late May 2000, illustrating the rapidly consolidating dynamics of the logistics industry.

Daniel L. Doctoroff, managing partner of Oak Hill Capital Partners, L.P., said, "We remain very enthusiastic about the prospects for the logistics industry in general and GATX Logistics in particular. While we are long-term strategic investors, the exceptional growth platform and synergies inherent in this combination coupled with the value created for our shareholders make this a compelling opportunity. In our association with GATX Logistics, we have been greatly impressed with the quality of management as well as the company's strong operating performance."

"It has been a personal and professional pleasure for us to partner with Oak Hill Capital and the Stephens Group and assist us in defining and executing our strategic vision. In evaluating our options, we had four requirements for the growth and future of our company," said Joseph A. Nicosia, president and chief executive officer, GATX Logistics, Inc. "We wanted to provide additional operating and service capabilities to allow us to better service our customer base over a broader, global network. At the same time, we needed to create increased opportunities for employee growth and development, while maintaining a continued presence in Jacksonville. And we wanted to provide continued growth within the Western Hemisphere, as well as in Asia and Europe, which are yet untapped for us. The transaction with APL Logistics will allow the company going forward to meet those requirements very well. The two companies fit together with little overlap."

APL Logistics, based in Oakland, California is a full-service logistics provider that uses cutting-edge information technologies, unparalleled expertise and a growing worldwide presence to provide global manufacturers and retailers with visibility and control of their shipments and time definite end-to-end supply chains. APL Logistics is a wholly owned subsidiary of Neptune Orient Lines Limited, a global transportation and logistics company based in Singapore. Container transportation company APL is also part of the NOL Group.

Founded in 1974, GATX Logistics, Inc. has expanded its service portfolio to manage a greater portion of the supply chain for its customers. Services offered range from warehousing support and freight management to information technology and value-added functions. The company recently launched a full-service eLogistics initiative offering integrated one-stop solutions for back-end support and fulfillment for e-commerce companies.

Oak Hill Capital Partners, L.P. is a private equity partnership founded by Robert M. Bass and his team of investment professionals. Oak Hill Capital makes significant investments through acquisitions, build-ups, recapitalizations, restructurings, strategic joint ventures and the purchase of minority stakes across a wide range of industries. Investments include: the formation of MeriStar Investment Partners, L.P.; a significant stake in American Skiing Company; a strategic investment in Cincinnati Bell, Inc., now Broadwing, Inc.; the acquisition of Caribbean Restaurants Inc. and TravelCenters of America (TA); and investments in several early stage growth companies including: Wide Open West Holdings, Align Technology, Inc., IP Wireless and eGain Communications.

NOTE TO EDITORS: A press release is also being issued by APL Logistics regarding this matter.