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.
