Public Warehousing Provider

Established in 1983, the Company grew into a substantial regional public warehousing, distribution, packaging and transportation services provider operating a 306,000 square foot facility in Central Illinois. A wholly-owned subsidiary of a large holding company, this 3PL company consistently provided the parent with positive cash flow and few headaches over the years. It did, however, become somewhat of a stepchild as the parent company was never able to execute their original plan to expand this part of their holdings and after the loss of a major customer, the decision was made to sell the 3PL business.

Despite the loss of their largest customer, the Company was able to reengineer and grow the value added packaging and transportation services and within one year had returned to profitability. Focus Capital was hired by the holding company to bring the business to market. Focus presented the business to a number of investors and strategic buyers, but the location was not exciting. Therefore, our strategy changed to focus on prospective buyers that needed the warehousing and transportation services of our client. The new direction required us to find a prospect with existing agriculture and trucking interests in Central Illinois or West Central Indiana. This search turned up an investment group that all lived in the region and had could see the potential add more business. The Company was an ideal add on to their existing businesses and we were able to exceed our client’s expectations with an all cash purchase price. The new owners were able to drive new business into the facility so the result was a positive outcome for all parties. Searching out the right buyer made all the difference.