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Case Studies

 

Private Equity Divestiture: Auction to Maximize Strategic Fit and Growth

Context:

Converge is a category leader in electronic component distribution and highly specialized reverse logistics focused on end-of-life asset disposal and repair/spare parts logistics. Pharos Capital Group, Converge’s owner, was seeking to maximize the value of their investment through a 100% sale of the business

Approach:

Converge/Pharos hired BG Strategic Advisors to evaluate and advise the company on its options.

We immediately recognized Converge’s unique service offering, exceptional blue-chip customer base, strong management team and track record for delivering exceptional financial results.

We conducted a broad auction process targeting logistics providers seeking to broaden their logistics suite, electronic component distributors seeking to add a new service, and private equity firms striving to add an exceptional platform company.

Through a well-run marketing process and correct identification of the most likely buyers, we achieved a valuation which far exceeded our client’s expectation and paired Converge with an ideal strategic partner

Results:

  • Converge was sold to Arrow Electronics, Inc. – one of the world’s largest distributors of electronics components
  • The combination of Converge’s complementary distribution services and its reverse logistics offerings make Arrow the dominant service provider to its customers
 
is pleased to announce
Arrow Electronics, Inc., a global
leader in electronic component distribution, has acquired
Converge, a global leader in reverse logistics, distribution and supply chain solutions for electronic components and high technology companies.

BG Strategic Advisors acted as the exclusive financial advisor to Converge in the transaction.

 

Maximizing Merger: Auction to Maximize Strategic Fit and Growth

Context:

Wilpak Inc. is a leading Atlanta-based supply chain management company focused on contract packaging, contract manufacturing, and logistics. The company’s objective was to explore a potential sale of the business.

Approach:

Wilpak hired BG Strategic Advisors to evaluate their options. In our positioning of the company, we highlighted Wilpak’s niche leadership in helping consumer products companies to bring their products to new markets, its strong EBITDA margins and explosive growth. We conducted a broad auction process targeting logistics providers seeking to offer a full suite of logistics services. While conducting a broad auction, we controlled the process, minimized the risk of information leakage, and ensured that buyers treated the process seriously. Through a well-run marketing process and correct identification of the most likely buyers, we achieved a record premium.

Results:

  • Wilpak was sold to the Jacobson Companies.
  • Wilpak achieved its earn-out and received a double-digit EBITDA multiple.
  • Wilpak received additional value via share appreciation in Jacobson.
 
is pleased to announce
The Jacobson Companies, a national warehousing, transportation and logistics leader, has acquired
Wilpak, an Atlanta-based supply chain management leader focused on contract packaging, contract manufacturing and logistics.

BG Strategic advisors acted as the exclusive financial advisor to Wilpak in the deal.

 

 

Bold Buyer: Pursuit of New Markets Through Merger

Context:

PWC Logistics is the top Mideast-based global logistics firm, providing supply chain solutions to the US Department of Defense and a broad range of multi-national companies. The company was seeking to expand into Asia through the acquisition of a high-quality specialty freight forwarding company.

Approach:

PWC Logistics retained its advisor, first to outline strategic options, and second to identify and execute on attractive acquisitions. PWC and its advisor initiated discussions with Trans-Link, a Singapore-based exhibition logistics and freight forwarding company with high levels of differentiation, customer satisfaction, and niche leadership. The core drivers of the fit included the opportunity for both parties to pursue new markets through a merger.

Results:

  • PWC Logistics completed the acquisition of Trans-Link.
  • Most of the senior management remained longer-term.
  • PWC’s market value more than doubled that year.
  • The combined entity, with a market capitalization in excess of $6 billion, became well-positioned to pursue integrated supply chain solutions in both the Mideast and Asia.
 
is pleased to announce
PWC Logistics, the leading Mideast logistics solutions provider, has acquired
TransLink Group, a leading Asian specialized logistics services provider.

BG Strategic advisors acted as the exclusive financial advisor to PWC in the deal.

 

Savvy Seller: Limited Auction to Maximize Price and Confidentiality

Context:

Unicity Integrated Logistics and Unicity Customs Brokerage provide cross-border, US-Canada transportation solutions to multi-national companies. The company’s objective was to explore a potential sale of the business. Confidentiality was important, but valuation expectations were high enough that a multi-party process was chosen.

Approach:

In Unicity and its advisor’s positioning of the company, the approach highlighted Unicity’s niche leadership in helping multi-national companies to reduce their inventory carrying cost in Canada through the shift from warehousing to cross-dock operations. Unicity and its advisor identified ten key buyers who would be a particularly compelling strategic fit, and ran a highly-competitive process to select the appropriate partner. The sellers had originally expected to depart, but agreed to stay on for at least two years, since the buyers were focused on management retention.

Results:

  • Unicity was sold to PBB Global Logistics for $45 million.
  • Unicity management became a platform for PBB’s growth.
  • Livingston bought the combined entity, which merged to form the top Canadian-based cross-border supply chain company.
 
is pleased to announce
PBB Global Logistics, a top Candian transportation and logistics provider, has acquired
Unicity, a Canadian leader in the cross-border supply chain strategy, systems and custom brokerage services.

BG Strategic advisors acted as the exclusive financial advisor to Unicity in the deal.

 

NFI Industries, Inc.

Context:

NFI is a family of companies providing supply chain solutions. Founded in 1932, NFI is now approaching a $1 billion company, and has grown to become one of America's leaders in 3rd party logistics. 

NFI offers a breadth of services comprising transportation, warehousing, logistics, and real estate, but traditionally operated as independent silos.  Hence, they engaged BG Strategic Advisors (BGSA) in order to develop and execute an integrated growth strategy, based on a prioritization of the most compelling market opportunities.

Approach:

BGSA began by analyzing industry value flows to target most attractive market opportunities. We then profiled most compelling competitive business models.  To gauge high-priority, high-unmet needs, we interviewed NFI’s top-20 customers. As a result, we prioritized the supply chain market opportunity and outlined a new business design.

To implement the strategy, we worked with senior management to reposition and streamline the organization. BGSA helped NFI save over $10 million in annual expenses. NFI then redeployed those savings in order to grow the company, as BGSA identified acquisitions to build out the model.

Results:

  • NFI successfully re-positioned and re-branded as an integrated supply chain solutions leader.
  • The new organization achieved successful results, fueled by both cost savings and effective acquisitions.
  • NFI is en route to another record year, and approaching $1 billion.