SIRVA, Inc. (formerly Allied Worldwide), based in Westmont, Illinois, is a privately owned moving industry holding company which resulted from the merger of Allied Van Lines with North American Van Lines. The corporate name was coined from the Latin word servire, "to serve." [1]
The company was formed in 1999 when private equity company Clayton, Dubilier and Rice merged its Allied and North American properties. In 2002, it traded on the New York Stock Exchange under its new SIRVA name under the ticker symbol of "SIR."
In early 2008 it sought Chapter 11 bankruptcy protection claiming that it was an early victim of the 2008 housing crisis. Its stock has been delisted. In May 2008 it emerged as a private company. In addition to going private $150 million debtor-in-possession financing was converted to $215 million Senior debt. [2]
The company's strategy is to be a one stop shop for all aspects of moving including home purchase and home sale services, household goods moving, mortgage services and home closing and settlement services. In 2007 it handled 300,000 relocations.[3]
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Beginning in late 1964 NAVL created its High Value Products Division (HVPD), which later was bought out from SIRVA and taken private as an independent company named Specialized Transportation Inc. The original division began with 20 drivers from the NAVL Exhibit and Display Division, and moved high value electronics for defense installations, contracted by Control Data Corporation, IBM and the computer division of General Electric.[4]
In 1979 NAVL moved to the top of the list among the six largest van lines.[4]
On May 3, 1984 NAVL was approved for sale by PepsiCo Inc. (NYSE: PEP) to Norfolk Southern Corporation (NYSE: NSC) for US$315 million.[5] At the same time PepsiCo was also negotiating sale of Lee Way Motor Freight, as a further move in its divestment of its transportation division.[6]
Over the subsequent two years NAVL was merged with the railroad in a deal that had been initially approved by the Interstate Commerce Commission, but then went through some rocky times in the ICC approval process after that.[4] [7] [8]
In 1992 Norfolk Southern's trucking operations, including NAVL, recorded a loss of close to $40 million, and Norfolk Southern Corp. decided to sell off two of its trucking divisions in 1993, although it retained NAVL for another five years. In 1998 Norfolk Southern exited the trucking business entirely when it sold NAVL.[5]
On January 12, 1998, NAVL was bought out from Norfolk Southern Corp. by the private investment firm Clayton, Dubilier & Rice for more than US$200 million.[4]
On November 21, 1999, Clayton, Dubilier and Rice also completed their acquisition of Allied Van Lines and merged it with North American Van Lines to create Allied Worldwide, although each former company maintained its own profile names. Valued at approximately US$450 million in the merger, the Allied Worldwide combined entity became the world's largest relocation and van line logistics company.[4]
The decade of the 2000s saw major internationalization, as the company reached far away from North America, beginning operations in other continents, such as Europe and South America.
On February 11, 2002 Allied Worldwide was renamed to SIRVA, Inc.[4]
In 2003 SIRVA, Inc. announced its initial public offering, and its common shares became listed on the New York Stock Exchange under the symbol "SIR".[4]
On October 11, 2004, a group of 43 North American Van Lines' agents, named the Specialized Transportation Agent Group Inc., bought out NAVL's High Value Products Division from SIRVA. The buyers renamed the new company Specialized Transportation Inc. (STI).[9]
On August 1, 2005, SIRVA sold its warehouse operation business to Lake Capital, a banking company. The employees who transferred to the new company were allowed to dub it NAL Worldwide, which is a limited liability company. The NAL doesn't stand for anything in particular, but it does beckon to a familiar sound to previous customers and anyone else familiar with the old North American Logistics. NAL is chiefly involved in warehousing operations and logistics.
On February 5, 2008, SIRVA filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. The company's Plan of Reorganization became effective May 12, 2008, at which point its Chapter 11 case concluded and it became a private company.
The North American Van Lines trucks are painted in white and a clear shadow of blue, with red and blue circles on the white area, and a white arrow crossing the circles. The name North American is spelled "northAmerican" on the company's trucks' liveries.
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