GENCO Advising on the acquisition of a publicly-held company
Republic Partners had advised GENCO Supply Chain Solutions βGENCOβ on, among other projects, the acquisitions of both IOgistics, a third-party logistics company Β that specialized in transportation management, and Capital Returns, Inc., a pharmaceutical returns business. In the fall of 2009, GENCO was presented with the opportunity to acquire ATC Technology Corporation βATCβ, a 3PL that served primarily the consumer electronics industry.Β Β
The acquisition of ATC presented new challenges to GENCO, a privately-held company.Β It would be GENCOβs first attempt to acquire a publicly-held company. In addition, the acquisition of Β ATC would effectively double GENCOβs size. External capital was required to complete the acquisition. Acknowledging these challenges to the transaction, GENCO hired Republic Partners as a strategic advisor.Β
Republic Partnersβ Solution
Republic Partners worked closely with the executive team at GENCO and other advisors to assess the strategic and financial impact of the acquisition. Republic Partners carried out multiple functions such as providing assistance in financial modeling, helping to facilitate due diligence, and advising on negotiations with the target as well as with a private equity firm that provided equity in exchange for a minority stake in the combined company. GENCO announced the transaction in July 2010, and closed in October, 2010.