Logistics M&A: Genco to acquire ATC Technologies

Deal is expected to close in the fourth quarter

By ·

Earlier today, ATC Corporation, a provider of logistics and remanufacturing services for the high-tech and automotive industries, said it has entered into a definitive agreement and plan of merger pursuant to be acquired by third-party logistics (3PL) services provider Genco Distribution System Inc, for $512.6 million.

Genco is a privately-owned, 6,800-employee company with more than 130 operations throughout the U.S. and Canada. It has been led by Chairman and CEO Herb Shear since 1971 and provides various services, including: contract logistics, reverse logistics, product liquidation, pharmaceutical logistics, and government solutions for more than 150 customers, including manufacturers, retailers, and U.S. government agencies.

During a conference call with financial analysts earlier today, ATC President and CEO Todd R. Peters said this merger will provide ATC’s current customers with a broader set of solutions and the same level of operational expertise for which ATC has become known.

“We feel this agreement is a great opportunity for us, our customers, our employees, and our stockholders,” he said. “And in addition, this merger provides an opportunity for all our people to join a top-notch logistics company. [This] is a tribute to our employees’ hard work and dedication that Genco sees ATC as an attractive potential acquisition.”

ATC officials said this deal is subject to approval by holders of a majority of ATC’s outstanding common stock, receipt by Genco of the proceedings of the debt and equity financing. The transaction is expected to close during the fourth quarter of 2010. 

ATC added that under the terms of this transaction ATC and its advisors are permitted and intend to actively solicit alternative acquisition proposals from third parties until August 17. Genco has the right to match any offer ATC receives and is entitled to a breakup fee of $15 million if ATC were to accept and approve a superior proposal during the soliciting period and after the soliciting period Genco could receive $20 million if an unsolicited period is received and approved.


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Latest Whitepaper
Increase Efficiency and Profits with Smarter Logistics Planning
Optimize your fleet by maximizing capacity and reducing empty miles
Download Today!
From the May 2017 Issue
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management, but what sort of technologies fall under these broad terms, and how will they change the management capabilities at our disposal? To find out, we talked to some noted supply chain analysts, consultants and technology executives and gathered six digital trends to watch.
Transportation Trends and Best Practices: The Battle for the Last Mile
2017 Technology Roundtable: Are we closer to “Intelligent” Logistics?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Going Beyond Rate Negotiations for Logistics Cost Savings
The pressure to reduce cost is a fundamental part of every organization today leaving many supply chain professionals constantly renegotiating rates. This webcast examines four areas that may hold untapped savings potentials and even help organizations negotiate better rates.
Register Today!
EDITORS' PICKS
The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...

LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...