Ozburn-Hessey Logistics Merger to Create Leading National Firm; Local Management Team to Direct Combined Operation

Apr 24, 2001, 01:00 ET from Ozburn-Hessey Logistics

    NASHVILLE, Tenn., April 24 /PRNewswire Interactive News Release/ --
 Ozburn-Hessey Logistics (OHL), a leading logistics-management company that
 operates 27 warehouse and distribution facilities in the Southeast, announced
 today that it will merge with ProChannel Distribution Partners to create one
 of the nation's largest supply-chain management firms.  ProChannel is a
 logistics-management company that operates distribution centers in the Midwest
 totaling 1.6 million square feet.
     The newly combined operation will be known as Ozburn-Hessey Logistics and
 be headquartered in Nashville, TN.  The merged company will become one of the
 largest third-party logistics-management companies in the country.
     The OHL management team will manage the combined operations of the
 company.  Perry Ozburn, Chairman of OHL, will become a member of the company's
 Executive Committee.  Scott McWilliams, currently President and Chief
 Operating Officer, has been named Chief Executive Officer of the combined
 company, while Gary Kimball, chief financial officer of OHL, has been named
 Chief Financial Officer of the combined company.  Senior Vice Presidents Bob
 Spieth and Fred Loeffel will become Chief Operating Officer and Senior Vice
 President of Sales and Marketing, respectively.
     "The logistics business has changed dramatically in recent years," Mr.
 McWilliams explained.  "Scale economies are becoming more important than ever
 and technological advancements are rapidly changing clients' expectations.
 With the financial resources of the newly combined company, we will be able to
 meet the requirements of a larger customer base, leveraging the advantages of
 our proprietary technological products."
     "This merger is the next logical step in the growth of our company and
 solidifies our goal of competing in the international logistics market," said
 Mr. Ozburn.  "Our senior management strength combined with the resources of
 ProChannel positions us to be a formidable player in the rapidly evolving
 field of logistics service."
     ProChannel was formed in 1999 by DLJ Real Estate Capital Partners to
 consolidate the highly fragmented logistics-management industry.  The
 company's customers include Sysco Foods, Campbell Soup, and Johns Manville
 with distribution centers in Ohio and Wisconsin.  DLJ Real Estate Capital
 Partners is responsible for Credit Suisse First Boston's global real estate
 private-equity business.
     "We are very excited about partnering with one of the strongest management
 teams in the industry," said Andy Rifkin, Managing Director of DLJ Real Estate
 Capital Partners.  "This is an integral step in accomplishing our goal of
 building one of the leading supply-chain management businesses in the
 country."
     Since its founding in 1951, OHL has become a leading provider of logistics
 services, with revenues increasing at an annual rate of 50 percent.  The firm
 now employs 800 people and manages and operates over 6 million square feet of
 distribution centers across the Southeast, including 3.7 million square feet
 in the Middle Tennessee area.
     OHL provides a wide range of services including logistics management,
 transportation, real estate development, brokerage and management, material-
 handling and fleet-management services.  Logistics Technologies, a subsidiary
 of OHL, is the developer and marketer of Synapse, one of the industry's
 leading warehouse-management systems.  OHL clients include Federal Express,
 Hewlett Packard, Murray, Honeywell, International Paper, Remington, DuPont and
 Reemay.  In addition to its Nashville operations, OHL has
 warehouse/distribution facilities in Memphis and Bowling Green, TN; Raleigh,
 NC; and Richmond, VA.
 
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SOURCE Ozburn-Hessey Logistics
    NASHVILLE, Tenn., April 24 /PRNewswire Interactive News Release/ --
 Ozburn-Hessey Logistics (OHL), a leading logistics-management company that
 operates 27 warehouse and distribution facilities in the Southeast, announced
 today that it will merge with ProChannel Distribution Partners to create one
 of the nation's largest supply-chain management firms.  ProChannel is a
 logistics-management company that operates distribution centers in the Midwest
 totaling 1.6 million square feet.
     The newly combined operation will be known as Ozburn-Hessey Logistics and
 be headquartered in Nashville, TN.  The merged company will become one of the
 largest third-party logistics-management companies in the country.
     The OHL management team will manage the combined operations of the
 company.  Perry Ozburn, Chairman of OHL, will become a member of the company's
 Executive Committee.  Scott McWilliams, currently President and Chief
 Operating Officer, has been named Chief Executive Officer of the combined
 company, while Gary Kimball, chief financial officer of OHL, has been named
 Chief Financial Officer of the combined company.  Senior Vice Presidents Bob
 Spieth and Fred Loeffel will become Chief Operating Officer and Senior Vice
 President of Sales and Marketing, respectively.
     "The logistics business has changed dramatically in recent years," Mr.
 McWilliams explained.  "Scale economies are becoming more important than ever
 and technological advancements are rapidly changing clients' expectations.
 With the financial resources of the newly combined company, we will be able to
 meet the requirements of a larger customer base, leveraging the advantages of
 our proprietary technological products."
     "This merger is the next logical step in the growth of our company and
 solidifies our goal of competing in the international logistics market," said
 Mr. Ozburn.  "Our senior management strength combined with the resources of
 ProChannel positions us to be a formidable player in the rapidly evolving
 field of logistics service."
     ProChannel was formed in 1999 by DLJ Real Estate Capital Partners to
 consolidate the highly fragmented logistics-management industry.  The
 company's customers include Sysco Foods, Campbell Soup, and Johns Manville
 with distribution centers in Ohio and Wisconsin.  DLJ Real Estate Capital
 Partners is responsible for Credit Suisse First Boston's global real estate
 private-equity business.
     "We are very excited about partnering with one of the strongest management
 teams in the industry," said Andy Rifkin, Managing Director of DLJ Real Estate
 Capital Partners.  "This is an integral step in accomplishing our goal of
 building one of the leading supply-chain management businesses in the
 country."
     Since its founding in 1951, OHL has become a leading provider of logistics
 services, with revenues increasing at an annual rate of 50 percent.  The firm
 now employs 800 people and manages and operates over 6 million square feet of
 distribution centers across the Southeast, including 3.7 million square feet
 in the Middle Tennessee area.
     OHL provides a wide range of services including logistics management,
 transportation, real estate development, brokerage and management, material-
 handling and fleet-management services.  Logistics Technologies, a subsidiary
 of OHL, is the developer and marketer of Synapse, one of the industry's
 leading warehouse-management systems.  OHL clients include Federal Express,
 Hewlett Packard, Murray, Honeywell, International Paper, Remington, DuPont and
 Reemay.  In addition to its Nashville operations, OHL has
 warehouse/distribution facilities in Memphis and Bowling Green, TN; Raleigh,
 NC; and Richmond, VA.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X63877311
 
 SOURCE  Ozburn-Hessey Logistics