RANCHO DOMINGUEZ, Calif., May 2, 2003 (PRIMEZONE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today announced its acquisition of Indair Carriers Pvt Ltd, ranked by IATA (International Air Transport Association) in terms of revenues generated as the largest airfreight export forwarding company in India. Terms of the transaction were undisclosed.
The profitable company, with 150 employees, achieved approximately $32.5 million in IATA revenues during the 2002 calendar year and moved in excess of 1,200 tons of airfreight on average per month. The transaction is expected to be immediately accretive to UTi.
Headquartered in Delhi, Indair operates from five gateway points, including Bangalore, Bombay, Calcutta and Madras, together with a regional network of sub offices. Indair is a significant master loader of cargo and works with leading export houses spanning the fashion, apparel, carpets, handicrafts and leather industries.
"Combined with UTi India, which has grown to be the fourth largest IATA-ranked airfreight operator in India with a network of 12 offices throughout the country, we now offer the most comprehensive air cargo export business in this emerging market," said Alan Draper, executive vice president of UTi Worldwide and president of the Asia Pacific region. "Through the greater scale this acquisition provides, as well as the added expertise of Indair's Managing Director Virender Khosla and Director Ravinder Katyal, we expect to be significantly better positioned to negotiate premium lift, transit times, rates and group benefits for our client base in the India subcontinent. Additionally, Indair's impressive client base will now have seamless access to UTi Worldwide's global network of air and ocean freight forwarding, contract logistics, customs brokerage and other logistics-related services."
About UTi Worldwide
UTi Worldwide Inc. is an international, non-asset based supply chain management company providing air and ocean freight forwarding, contract logistics, customs brokerage and other logistics-related services. The company serves a large and diverse base of global and local companies, including customers operating in industries with unique supply chain requirements such as the pharmaceutical, apparel, chemical, automotive and technology industries. The company seeks to use its global network, proprietary information technology systems, relationships with transportation providers and expertise in outsourced logistics services to optimize the operation of its customers' global supply chains.
Safe Harbor Statement
Certain statements in this news release may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company intends that all such statements be subject to the "safe-harbor" provisions contained in those sections. Such statements may include, but are not limited to, integration risks associated with the Indair acquisition, the company's discussion of its growth strategy to provide complete outsourcing solutions, and any other statements, which are not historical facts. Many important factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements, including increased competition; integration risks associated with acquisitions; the effects of changes in foreign exchange rates; changes in the company's effective tax rates; industry consolidation making it more difficult to compete against larger companies; general economic, political and market conditions, including inventory build-up, economic slowdowns and consumer confidence; work stoppages or slowdowns or other material interruptions in transportation services; risks of international operations; the success and effects of new strategies; disruptions caused by conflicts, wars and terrorism; and the other risks and uncertainties described in the company's filings with the Securities and Exchange Commission. Although UTi believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by UTi or any other person that UTi's objectives or plans will be achieved. The historical results achieved by the company are not necessarily indicative of its future prospects. UTi undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.