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12-Year Strategic Relationship Advising on Acquisitions and a Successful Exit

Company Background

A family-owned business grows under innovative leadership

When Herb Shear became president of GENCO in 1971, he was a third-generation member of the family-owned business with an 80,000 square feet warehouse and annual revenue of less than $300,000. He grew GENCO both organically and via acquisitions. By late 2002, GENCO was operating over 80 facilities in the US and Canada with 17 million square feet of floor  space and generated revenue in excess of $250 million.

 

Mr. Shear had become a recognized leader in the 3PL industry, developing reverse logistics as a formal discipline and pioneering the use of state-of-the-art software for both forward and reverse logistics.

12 Years

Of Partnership

3 Buy-side

Transactions Prior To The Exit

$1.4 Billion

Enterprise Value At Exit

The Challenge

An evolving industry creates pressure to change and grow

The third-party logistics industry landscape was changing rapidly with companies demanding more services from their 3PL providers and competitors jockeying for position to meet this requirement for broader, deeper, and more comprehensive offerings. To ensure that GENCO stayed at the forefront of the industry, Mr. Shear continually evaluated the Company’s portfolio of services and determined whether it should build or buy the new capabilities required.

Mr. Shear sought an investment bank that would be his partner in evaluating and executing potential strategic acquisitions.

Republic Partners' Role

Throughout the years we assisted GENCO in evaluating opportunities for their long-term strategy

Over the years, we developed a trusting relationship born of candid and unbiased perspectives and advice. As companies became available on the market, we reviewed and analyzed potential acquisitions. We assisted the GENCO team in financial  modeling, facilitating due diligence, and on negotiations. We also conducted strategic studies on a number of industry segments to help GENCO determine which potential acquisitions were of high value and a strategic fit.

The Results

From 2003 to 2014, we served as GENCO’s strategic advisory and investment banking partner

We advised GENCO on multiple acquisitions, in negotiations on infusion of capital, on merger integration, and on its sale to FedEx:

2003: Advised on the acquisition of IOgistics, a transportation management company

2005: Advised on the acquisition of Capital Returns, a pharmaceutical returns business

2010: Co-advised on the acquisition of ATC Technology Corporation, a publicly-held 3PL serving the technology and telecom sector which included the sale of a minority position to Greenbriar Equity Group

2011: Advised on the merger integration of ATC Technology Corporation

2014: Advised on the sale of GENCO to FedEx Corporation