Nice start to the New Year for shareholders of EGL Inc. (NASDAQ:EAGL). The stock price surged 27% to $38.10.
The company, which is a freight forwarder, has announced it is going private. The buyers include the company's CEO, James R. Crane (who owns about 18%), as well as General Atlantic, which is a private equity firm.
The second half of 2006 was particularly rough for EGL. The company posted weak revenues and the stock price got crushed.
Yes, it looks like Crane, who is also the founder of the company, senses a value play. What's more, the company generates substantial free cash flows -- which always makes things easier when doing a buyout deal.
Tom Taulli is the author of various books, including the Complete M&A Handbook and operates DealProfiles.com.
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