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Letter to the Editor
Tuesday April 24
Copart to Acquire Universal Salvage Plc in UK
Copart, Inc. has reached an agreement with the board of Universal Salvage Plc, of the UK, with respect to a recommended cash offer by a wholly-owned Copart subsidiary (Copart UK) organized under the laws of England and Wales to acquire the entire issued share capital of Universal.Under the Offer, Copart, through Copart UK, is offering shareholders of Universal an aggregate of GBP 2.00 in cash for each issued share (approximately $3.96 based on exchange rates on April 4, 2007). The Offer values Universal in the aggregate at approximately GBP 57.0 million ($112.8 million), excluding cash issuable in connection with outstanding options and a warrant, currently estimated to total approximately GBP 4.6 million ($9.1 million). Copart will also assume outstanding indebtedness of Universal totaling approximately GBP 2.2 million ($4.4 million).
Directors and certain shareholders of Universal beneficially owning approximately 27 percent of Universal's issued shares, have agreed, regardless of whether any higher competing offer is made, to accept the Offer. Other Universal shareholders, beneficially owning approximately 26 percent of Universal's issued shares, have also agreed to accept the Offer contingent on the absence of an offer at a higher price.
Universal is a leading service provider to the UK motor insurance and automotive industries. Universal manages the collection and disposal of vehicles for a broad range of clients. It handles a wide range of vehicles, including accident-damaged cars, commercial vehicles, motor cycles, and low-value vehicles sold on a fee basis, end-of-life vehicles, and abandoned and tax default vehicles. It sells most of these vehicles at auction (in-door, out-door, and online) and recycles the remaining vehicles through its authorized recycling facilities. Universal operates a network of seven facilities located though out the United Kingdom.
The Offer is to be effected by means of a scheme of arrangement under section 425 of the Companies Act (England) and the scheme will require the approval of the Universal shareholders and the sanction of an English court. Assuming requisite approvals, Copart and Universal currently anticipate that the transaction will be completed during Copart's fiscal quarter ending July 31, 2007.
Copart, founded in 1982, operates 124 vehicle salvage facilities in the United States and Canada. It also provides services in other locations through its national network of independent salvage vehicle processors.
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