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July 27, 1999 1:59 PM, EDT

Mark VII Inc., an intermodal and logistics company based in Memphis, Tenn., has agreed to a buyout by MSAS Global Logistics, a unit of Ocean Group plc, for $23 a share in cash.

R.C. Matney, chairman of Mark VII, said a merger with the London-based Ocean Group is in the best interests of cus-tomers, stockholders and employees.

The purchase would substantially expand freight business in the United States for MSAS, whose parent company also owns Intexo BV, Marken Express, McGregor Cory, Cory Towage, Mercury Airfreight International and Cory International.

The tender offer represents a 30% premium over the closing price of Mark VII shares on July 26. It is supported by the company’s directors who own about 8.4% of the outstanding shares, according to the company.

Mark VII generated gross revenue of $724.9 million in 1998 and posted net income of $9.6 million, or $1.01 for each diluted share.

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