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Janel World Trade Group Acquires Customs ‘Book of Business’ From Ferrara International Logistics, Inc.

2008-07-25 07:30:00

Janel World Trade Group Acquires Customs ‘Book of Business’ From Ferrara International Logistics, Inc.

    JAMAICA, N.Y., July 25 /EMWNews/ -- Janel World Trade,

Ltd. (OTC Bulletin Board: JLWT), a full-service global provider of

integrated logistics services, today announced that it completed the

purchase of the customs brokerage "book of business" assets from Ferrara

International Logistics, Inc. of Elizabeth, New Jersey on July 18, 2008.

    The purchase price for the acquired assets was $2.1 million, comprised

of a $600,000 cash payment by Janel at closing, the issuance of 520,661

restricted shares of Janel common stock, a $435,000 cash payment one year

after closing, and a $435,000 cash payment three years after the closing of

the transaction. The actual amount paid by Janel to Ferrara may be

increased or decreased based on the performance of the purchased assets

during the three-year period following the closing. Further details are

available in Janel's Form 8-K filing with the U.S. Securities and Exchange

Commission on July 24, 2008.

    The acquisition is expected to contribute approximately $5 million in

revenue and approximately $700,000 in EBITDA (earnings before interest,

taxes depreciation and amortization -- a non-GAAP measure) to Janel's

operations on an annualized basis.

    "We believe this acquisition and its integration into the Janel network

will benefit the customers of both The Janel Group and Ferrara

International in several ways," noted James N. Jannello, Chief Executive

Officer of Janel World Trade, Ltd. "The logistics arm of Ferrara

International, which includes a 150,000 square-foot warehouse that offers

bonded and refrigerated services, will allow both customer groups to enjoy

a full complement of value-added services, while maintaining the excellence

in service that the market has come to expect from both organizations.

Ferrara's extensive experience in providing services to importers and

exporters of food products will significantly enhance our core competency

in a critically important market for The Janel Group and expand our

logistical capabilities in such countries as Italy, Vietnam, Brazil and

India, among others."

    "The Janel Group's domestic and international network of offices will

also open new doors for Ferrara's customers by offering services in

locations not previously served by that company. This includes expansion

into the air freight market utilizing Janel's worldwide network of agents,

thereby offering customers a true one-stop shopping service from the

international point of origin to the U.S. destination of choice. By

utilizing Janel's existing contracts and relationships, we have the ability

to offer the customers in Ferrara's 'book of business' sea and air freight

services on both inbound and outbound shipments, thereby delivering

merchandise and other products to foreign as well as domestic destinations

with the highest level of customer care and service."

    "The value of this transaction is enhanced by our ability to market the

powerful information technology and global supply solutions offered by our

Order Logistics subsidiary to an entirely new set of customers," continued

Janello, "thereby allowing them to track the status of their individual

orders on a 'real time' basis over the Internet, 24 hours a day, 365 days a


    "Our purchase is representative of additional acquisition opportunities

that we hope to identify in our quest to globalize Janel's scale as a

provider of integrated transportation logistics, information technology

solutions, and supply-chain management capabilities to exporters and

importers alike," concluded Jannello.

    About Janel World Trade, Ltd.

    Janel World Trade, Ltd. is a global provider of integrated logistics

services, including domestic and international freight forwarding via

multi-modal carriers, customs brokerage, warehousing and distribution, and

other transportation-related services. With offices throughout the U.S.

(New York, Chicago, Los Angeles, and Atlanta) and the Far East (Hong Kong,

Shanghai, and Shenzhen), the Company provides the comprehensive services

necessary to handle its customers' shipping needs throughout the world.

Cargo can be transported via air, sea or land, and Janel's national network

of locations can manage the shipment and/or receipt of cargo into or out of

any location in the United States. Janel is registered as an Ocean

Transportation Intermediary and licensed as a FMC Licensed Freight

Forwarder by the Federal Maritime Commission.

    Janel World Trade, Ltd.'s headquarters is located in Jamaica, New York,

adjacent to the JFK International Airport, and its common stock is listed

on the OTC Bulletin Board under the symbol "JLWT". Additional information

on the Company is available on its website at

    This press release includes statements that may constitute

"forward-looking" statements, usually containing the words "believe,"

"estimate," "project," "intend," "expect" or similar expressions. These

statements are made pursuant to the safe harbor provisions of the Private

Securities Litigation Reform Act of 1995. Forward-looking statements

inherently involve risks and uncertainties that could cause actual results

to differ materially from the forward-looking statements. Factors that

would cause or contribute to such differences include, but are not limited

to, the Company's dependence upon conditions in the air, ocean and

land-based freight forwarding industry, the size and resources of many

competitors, the need for the Company to effectively integrate acquired

businesses and to successfully deliver its primary services, and other

risks detailed in the Company's periodic report filings with the Securities

and Exchange Commission, including its most recent Form 8-K, Form 10-Q and

Form 10-K filings. By making these forward-looking statements, the Company

undertakes no obligation to update these statements for revisions or

changes after the date of this release.

    For further information, please contact:

    RJ Falkner & Company, Inc., Investor Relations Counsel at (800)


    or via e-mail at [email protected]

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