March 28, 2012
All AGS Employees and Partners:
I am writing to advise you of a major development regarding our company and share with you some background information along with my feelings on how this will benefit all of our employees, our business partners and our customers.
On Wednesday, March 28, 2012, Nippon Express USA, Inc. (NEU) purchased all of the stock of Associated Global Systems, Inc. With this transaction, AGS will continue to operate as a separate subsidiary retaining the AGS employee and management structure, our network of stations and agencies along with the continuation of an expansion plan to dramatically grow our business.
Nippon Express is one of the world’s largest logistics companies, with revenue of over $ 20 billion. The company operates rail, trucking, ocean, airfreight and warehousing services from more than 1,400 facilities in Japan and has over 360 locations on six continents providing customs brokerage, warehousing, relocation services , supply chain solutions and international freight forwarding.
In June of 2011, Norman and I met with the President and CEO of Nippon Express USA, Inc. Mr. Kenryo Senda and his senior staff in New York City. The purpose of the meeting was to explore ways our two companies could work together as strategic partners with the idea that this could lead to an investment in AGS. During the meeting it became apparent to Norman and Mr. Senda that our two companies shared similar management philosophies and values of integrity, respect and empowerment of our employees, along with a strong commitment to service quality and service innovation. It was also understood that the combination of our two companies would create a unique door to door global delivery service for imported products to businesses and consumers in the U.S., and that this expanded network of gateway to gateway transportation and final mile delivery would provide AGS and Nippon Express with a strong advantage in the marketplace to grow new business and provide more services and solutions to our present customers.
It was not until late October, two months after Norman’s passing, that we met again. During that meeting, we verified our earlier feelings on the benefits and synergy of our two companies joining together to create a unique value producing door to door global service with the AGS network providing US distribution and final mile delivery, along with further expansion of AGS logistics services in the US market. Norman’s three daughters were kept advised of our discussions and out of respect of their father’s wisdom and wishes, agreed to proceed with the transaction with Nippon Express.
During the 36 years I knew Norman, he never mentioned a legacy for himself, he was above such thoughts; nor was continuation of the name AGS important to him, although that may continue for years given the subsidiary structure of the Nippon Express acquisition. What Norman did care about was our people and maintaining an organization that would provide our employees and partners with an opportunity where they can continue to grow their careers by working as a cohesive group developing new accounts and providing creative logistics solutions for our customers.
Mr. Senda has asked me to continue in the position of President and CEO of AGS and I have agreed to do so. It is my desire and belief that as a result of this transaction all of you will have a unique opportunity to achieve your personal career goals with the company and to share in our future success for many years in the future.
Attached is a sincere and thoughtful welcome letter from Kenryo Senda, President and CEO of Nippon Express USA, Inc. to all AGS employees and partners.
Respectfully,
James Tucci
President and CEO
ASSOCIATED GLOBAL SYSTEMS
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