TeleServices Internet Group Inc. of St. Petersburg, FL has signed a letter of intent to acquire Xcalibur Xpress Inc., a trucking and logistics provider serving the intermodal industry. Terms of the proposed transaction were not disclosed.
TeleServices said that Xcalibur Xpress owner Rick Kelly and his family have more than four generations of experience serving the intermodal industry, with a client base that includes Maersk/Sealand, P&O Nedlloyd, NYK Lines, Wal-Mart, Weyerhauser Paper, Alcoa Aluminum, PPG and Great Lakes Chemical.
For the first six months of 2001, Xcalibur’s management reports that revenues were at an annualized rate of approximately $6.2 million (unaudited), an increase of more than 200% from the prior year. Xcalibur’s management seeks additional capital for expansion, which TIGI must provide as one of the conditions of closing the transaction.
Xcalibur said if it receives a capital infusion over the next quarter for capital equipment and working capital, management projects they would be able to generate 2002 revenues in excess of $40 million, with pre-tax profit margins of 7% to 10%.
Based in Charleston, SC, Xcalibur recently opened new terminals in Atlanta and Savannah, Georgia. Those facilities are expected to help increase revenue by $3 million per year, growing to $5 million over time, the company said.