Genco to acquire ATC Technologies

The deal is expected to close during the fourth quarter of 2010.
image
By Jeff Berman, Group News Editor
July 20, 2010 - MMH Editorial

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 Supply Chain Solutions, 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, ATC president and CEO Todd 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

image
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff joined the Supply Chain Group in 2005 and leads online and print news operations for these publications. In 2009, Jeff led Logistics Management to the Silver Medal of Folio’s Eddie Awards in the Best B2B Transportation/Travel Website category. 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. If you want to contact Jeff with a news tip or idea,
please send an e-mail to .(JavaScript must be enabled to view this email address).


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!

Recent Entries

For May, which is the most recent month for which data is available, the SCI is -7.5, following April’s -7.5. FTR said this reading represents a still-tight capacity environment, as utilization rates hover between 98 percent and 99 percent.

With a 1.1 cent drop to $3.858 per gallon, this follows declines of 2.5 cents, 1.9 cents, and 0.7 cents over the previous three weeks, with the cumulative four-week decline at 6.2 cents.

Second quarter revenue for transportation and logistics titan UPS headed up 5.6 percent annually at $14.3 billion, while operating profit sank 57.1 percent to $747 million. Quarterly net income fell 57.6 percent to $454 million.

Panjiva, an online search engine with detailed information on global suppliers and manufacturers, recently said it is opening up the “vault,” so to speak. The vault in this case is making its copious amount of trade data accessible through an Application Programming Interface (API), which enables customers to extract Panjiva’s trade data into their own database.

Freight transportation and logistics services provider Averitt Express recently announced it has rolled out improved transit times for less-than-truckload (LTL) service from the Midwest to Toronto and other cities.

Article Topics

· 3PL · Third-Party Logistics · Genco ATC · All topics

About the Author

Bob Heaney is a seasoned professional with over 25 years of distinguished leadership experience in research, analysis, and advisory roles in Supply Chain Engineering. Heaney’s coverage area within Aberdeen includes various elements of Supply Chain Execution (Transportation Management, Warehouse Management, Distributed Order Management and Supply Chain Visibility). Contact Bob Heaney

Comments

Post a comment
Commenting is not available in this channel entry.