Investment Banking

Image

Cyberattacks: A potent reminder of technological vulnerabilities in the age of automation.

High profile cyberattacks are a potent reminder of growing technological vulnerabilities as manufacturers implement higher levels of automation. Adoption of “Industry 4.0” technology infrastructure is increasing the attack surface to include legacy systems not designed to defend against today’s sophisticated cyber criminal or rogue nation. Ransomware can trigger financial losses, but disruption to production and supply chains can cause harm beyond the initial shake-down. Breaches such as the Colonial Pipeline and SolarWinds attacks grab headlines and underscore the need to defend operations and silo production networks from companies’ external facing business networks. In response, manufacturers should audit not only their existing cyber defenses, but also the resiliency of their operations in the event of a cyber attack. 

Cybersecurity plays a vital role in M&A strategy and execution. Firms considering a transaction should understand risks present in the form of data leaks, ransomware, and opportunities for malicious actors to use a transaction as a way to break into an acquiring company. According to IBM, more than half of companies wait until due diligence is completed to perform cybersecurity assessments. Considerations surrounding data privacy regulations, mandatory disclosure laws, and the risk of business interruption should be a priority for sellers and acquirors from the early stages of the transaction process.

Image

CLIENT

Cibes Lift Group is one of the world’s most innovative manufacturers of space-saving lifts designed for fast and easy installation, also offering a wide range of conventional lift solutions. Thanks to the wide range of lift products and a flexible design concept, the lift solutions of Cibes Lift Group adapt to the requirements of public, commercial, and private settings. Sales, installation, and maintenance services are provided by a global network of subsidiaries and partners. The company group is headquartered in Gävle, Sweden, and has production facilities in Sweden and China. In 2021 the Group had approximately 1200 employees and a revenue of 1.9 billion SEK.

SITUATION

In Europe and Asia, Cibes established its reputation as a premium vertical platform lift manufacturer serving primarily residential customers and experienced substantial growth. To compound on its global reach, the company entered the United States market in 2020 by establishing a state-of-the-art showroom in the Miami metropolitan area. Cibes looked to apply its successful M&A track record in Europe to bolster its growth in the United States by acquiring new customers, capabilities, and geographic markets.

ENGAGEMENT

G2 Capital Advisors, LLC (“G2”) served as the exclusive buy-side advisor to Cibes, leading a bespoke buy-side effort focused on identifying and engaging with American companies that have a strong market presence and operations within residential elevator markets.

OUTCOME

G2’s mandate with Cibes began in 2021 and led to a successful acquisition of American Elevator of Atlanta (“AEA”), followed this month by the acquisition of Bella Elevator LLC, manufacturer of Symmetry Elevating Solutions (“Bella” or “Symmetry”). The acquisition secures a manufacturing center for Cibes in the United States and further establishes its U.S. presence after its 2021 acquisition of AEA. Symmetry adds local manufacturing capabilities, an enhanced home elevator and accessibility product portfolio, and an increased reach in the U.S. and Canada through a robust 80-location distributor network. Bella will remain in operation and work in tandem with Cibes to promote the Cibes and Symmetry brands across the U.S.

Per Lidström, CEO of Cibes Lift Group, commented “I am excited to add Bella and Symmetry to our U.S. arm and Cibes family. We entered the United States with a high level of excitement for adding domestic manufacturing capabilities and are grateful for the work G2 did to promote our relationship with Bella. We are pleased with the work G2 dedicated to this acquisition to help share our culture, goals, and vision with Bella. We look forward to having Bella on board as a key contributor to that vision.”

“The G2 team is thrilled to help welcome Bella and Symmetry to the Cibes team. Symmetry has an exceptional brand name and reputation in the U.S., adding to Cibes international acclaim in the residential elevator space. Its manufacturing capabilities will be instrumental to bringing the full Cibes product suite to the U.S. and will add a significant product expansion to its world-class offerings. We are excited to continue supporting Cibes’ U.S. strategy and look forward to seeing the company’s continued growth.” said Peter Reed, Director at G2.

About G2 Capital Advisors

G2 Capital Advisors provides M&A, capital markets and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor of choice to our clients including corporations and institutional investors.

CONTACTS ON THIS DEAL:

Peter Reed, Director, Head of Buy-Side: T: 617.918.7972 E: [email protected]

Aaron Levy, Associate: T: 857.250.2767 E: [email protected]

Ben Stevenson, Associate: T: 857.317.2785 E: [email protected]

Jeremy Caulkins, Analyst: T: 857.317.2790: E: [email protected]

Image

CLIENT
Founded in 1987 by Monte and Debra O’Hara, Capital Express, Inc. (“Capital Express” or the “Company”), is a leading provider of final mile and courier services.  The Company is headquartered in Omaha, Nebraska providing services across the Midwest region.  Capital Express has a premier customer base shipping products across resilient end markets that include healthcare / pharmaceutical, office supplies, e-commerce and other products that fit nicely into its conjunctive network.

SITUATION
After building the Company for over 35 years, developing significant density across nine states, and navigating recent headwinds of the COVID-19 environment, Monte and Debra felt it was time to evaluate strategic alternatives which included finding a partner to accelerate the execution of future growth initiatives.  

ENGAGEMENT
G2 Capital Advisors, LLC (“G2”) was engaged by Capital Express as the exclusive sell-side advisor to lead a highly targeted and efficient sale process focused on identifying a partner to recapitalize the business.   

OUTCOME
The transaction was successfully executed through a majority recapitalization of Capital Express by funds affiliated with Red Dog Equity LLC (“Red Dog”).  A combination of Capital Express and ADL Delivery will serve as Red Dog’s foundational platform investment in the final mile and courier segment operating across 45 locations in 15 states.  

Monte O’Hara, Founder and Chief Executive Officer of Capital Express said “I have spent my entire life building this business with the help of a fantastic management team who supported the execution of our strategic objectives and all of the great employees that have supported our network.  G2 had a clear vision of how to maximize optionality and find the optimal partner for Capital Express.  They were methodical with their approach and made sure that my team and I understood their rationale behind key strategies.  G2 brought a number of highly qualified partners to the table, and we are thrilled to partner with Red Dog and look forward to the acceleration, growth and development of Capital Express.” 

“Capital Express was built from the sheer grit and determination of Monte O’Hara, his amazing management team and dedicated employees.  We are grateful to be a small part of the Company’s journey which started with deliveries in one local market and has become a leading regional courier across nine states.  We are extremely proud of Monte and believe he has found a tremendous partner in Red Dog who embodies his values.  We are excited to track their progress and know there will be tremendous success in their collective futures.” said Christopher Casteleyn, G2 Managing Director of Transportation and Logistics.

About Capital Express, Inc.

Capital Express is a privately held provider of customized, final mile logistics services throughout the Central U.S.  The Company utilizes an asset-light platform with more than 25 locations across nine states to deliver healthcare, office supplies, e-commerce, and other product types to blue-chip clients.  www.capitalexpress.biz  

About Red Dog Equity LLC

Red Dog Equity LLC is a private equity firm that invests in lower middle-market companies poised for strong growth in partnership with driven, entrepreneurial business leaders (“Red Dogs”).  To learn more, please visit  www.reddogequity.com  

About G2 Capital Advisors, LLC
G2 Capital Advisors provides M&A, capital markets and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor of choice to our clients including corporations and institutional investors.

CONTACTS ON THIS DEAL:

Chris Casteleyn: Managing Director, T&L: T: 415.531.3138 E: [email protected]

Ben Wright: Chief Operating Officer, T: 619.972.3586 E: [email protected]

Tess Sheidy: Senior Associate, T: 248.767.1283 E: [email protected]

Matt Ball: Senior Associate, T: 978.914.4421 E: [email protected]

Noah Johnson: Senior Analyst, T: 717.598.8558 E: [email protected]

Image

CLIENT

ZRG Partners, LLC. (“ZRG” or the “Company”) is a rapidly growing global talent advisory firm providing a range of executive search, consulting & advisory, and interim solutions across the Industrials, Life Sciences, Consumer, Financial Services, Sports, and Technology industries, among others.

SITUATION

Following ZRG’s financial partnership with RFE Investment Partners (“RFE”) the organization grew exponentially through increased senior-level hiring efforts. To build on this momentum ZRG identified an avenue to further diversify and grow its services portfolio of human capital management services through the addition of consulting and further interim/outsourced services. Through a targeted M&A effort centered around enhancing capabilities, ZRG sought to further differentiate its offering in the marketplace by providing additional solutions for their clients. 

ENGAGEMENT

G2 Capital Advisors, LLC (“G2”) served as the exclusive buy-side advisor to ZRG leading a strategic M&A effort focused on identifying and engaging with potential acquisition candidates in the human capital consulting market. ZRG and RFE continued their partnership with G2 to leverage the firms’ deep-rooted expertise across the Technology & Business Services practice. G2 was engaged by ZRG for a second time with a heavy focus on services-oriented businesses including specialty consulting and executive search.

OUTCOME

G2’s mandate with ZRG began in 2019 with a core focus on establishing a growth strategy to better serve their clients’ needs and accelerate growth. This work led to the successful transaction of Brimstone Consulting in December 2021 followed this week by the acquisition of RoseRyan, Inc., a leading outsourced accounting and interim services firm. RoseRyan, headquartered in the heart of Silicon Valley, serves a range of business from start-ups to Fortune-500 companies across the technology, life sciences and private equity sectors globally. Together, ZRG and RoseRyan will leverage an extensive network of interim financial professionals, human capital search professionals, and business consultants to better serve its client base.

“The nature of the workforce has evolved and having even greater bandwidth in the finance and accounting consulting sector through RoseRyan is fantastic,” ZRG CEO Larry Hartmann said. “This complements our current interim team, led by Mark Viner, and also adds important consulting capability to allow us to service a wide range of clients, who need support in accounting and HR.”

Andrew Keleher, Director, Business Development at G2 Capital Advisors, commented “It has been a pleasure working with the team at ZRG and supporting their growth strategy over the years. The recent acquisition of RoseRyan further enhances ZRG’s ability to offer best in class services to its client base. We are thrilled for both organizations and look forward to seeing their success together in the coming years!”

About ZRG Partners

ZRG is a global talent advisory firm that is changing the way companies hire and manage talent. ZRG’s data-driven approach to executive and professional search has been changing the way clients think about how to find top talent. The company’s digital Zi platform combines talent intelligence, candidate insights, and process improvement to dramatically deliver executive searches quicker and with proven better results.

Today, with the help of private equity investor RFE Investment Partners, ZRG is among the fastest growing firms in the search industry and provides a full suite of retained search, on-demand talent, and consulting and advisory solutions across the Americas, Asia, Europe, and Australia.

About RoseRyan, Inc.

RoseRyan is a global leader in interim financial staffing solutions. The company provides tailored financial advisory solutions to a variety of clients, from startups to fortune 500 companies. With over 120 experienced finance and accounting and industry experts, RoseRyan provides outsourced accounting & finance, interim finance, corporate governance, and strategic project solutions. Their staff has deep experience through all stages of business life cycle across the life science and technology industries. RoseRyan is based out of Campbell, CA.

About RFE Investment Partners 

Founded in 1979, RFE Investment Partners is a private equity investor with a long-standing small buyout heritage and a time-tested strategy for growing businesses. RFE equips companies with the capabilities and resources to scale by leveraging the extensive operational expertise, financial acumen, and broad business network of the RFE team. Through over 75 small buyout transactions, RFE has consistently guided portfolio companies through multiple business cycles while driving value creation. RFE invested in ZRG Partners in December 2018, providing the tools and guidance needed to expand the capabilities and product offerings of the company, as well as grow the business on an international scale.

About G2 Capital Advisors

G2 Capital Advisors provides M&A, capital markets and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor of choice to our clients including corporations and institutional investors.

CONTACTS ON THIS DEAL:

Matt Konkle, President, T: 857.310.5554 E: [email protected]

Andrew Keleher, Director, Business Development T: 860.748.6480 E: [email protected]

Matt Ball, Senior Associate T: 978.914.4421 E: [email protected] 

Ben Stevenson, Associate: T: 412.680.9100 E: [email protected]

Aaron Levy, Associate: T: 857.250.2767 E: [email protected]

Bridget McGillicuddy, Analyst: T: 781.540.9085 E: [email protected] 

Image

CLIENT
Anyone Home, Inc. (“Anyone Home” or “the Company”) is an industry-leading SaaS-based CRM platform and tech-enabled managed services provider assisting residential property managers in capturing and converting leads and driving engagement with residents. The Company delivers unmatched insights into the customer journey and the industry’s most accurate and actionable lease attribution and analytics reporting.

SITUATION
Anyone Home, and prior lead investor Sopris Capital, were seeking to further the Company’s position as a leading real estate services provider, building on the strength of its technology and property manager partnerships. They sought a strategic partner who would further enhance the ability of Anyone Home to meet the evolving and expanding needs of its customers.

ENGAGEMENT
G2 Capital Advisors, LLC (“G2”) was engaged by Anyone Home as its exclusive financial advisor. G2 led a highly targeted and strategic sell-side transaction process focused on identifying the right partner to accelerate the growth of the Anyone Home platform.

OUTCOME
In March 2022, the transaction was successfully executed through a sale to InhabitIQ, a leader in property management software innovation. InhabitIQ is a portfolio company of investors including Goldman Sachs Asset Management, Insight Partners, Greater Sum Ventures, and Providence Strategic Growth.

“G2 was a trusted partnered to Anyone Home throughout the sale process providing key insights, advice, and leadership,” said Todd Katler, CEO and founder of Anyone Home. “They exceeded our expectations in their level of support and expertise. We couldn’t be more pleased with the result.” 

“The combination of Anyone Home and InhabitIQ represents a world-class partnership with expansive growth opportunities,” said Matt Konkle, President of G2. “The G2 team is honored to have worked with Todd and his team to create strategic value within an industry vertical that is a key focus for G2.”

About G2 Capital Advisors
G2 Capital Advisors provides M&A, capital markets and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor of choice to our clients including corporations and institutional investors. For more information, visit www.g2cap.com.

About Anyone Home

Headquartered in Lake Forest, California, Anyone Home is completely focused on prospect and resident engagement. Its solutions and services create higher NOI by driving more leasing activity by giving prospects the freedom of choice in how and when they choose to interact. Its solutions include the Anyone Home CRM, Property Tours, Leasing Chatbot, Contact Center and analysis of leasing agents’ calls with prospects. To learn more, visit www.anyonehome.com

About Inhabit IQ

Inhabit IQ is an innovative software company serving the residential, commercial and vacation property management industries. Its strategic partnerships deliver best-in-class software solutions and services while fostering innovation and collaboration with like-minded entrepreneurs and industry leaders. The company believes property managers should have the opportunity to choose platforms that best support their business goals and benefit from strategic partnerships across their ecosystem. Inhabit IQ has several private equity partners, including Goldman Sachs Asset Management, Insight Partners, Greater Sum Ventures and PSG, that are committed to helping support the Company’s commitment to property management software innovation. To learn more, visit www.inhabitiq.com.

G2 CONTACTS ON THIS TRANSACTION:

Matt Konkle, President: T: 317.371.6608 E[email protected]

Kerri Ford, MD, Head of Technology & Business Services: T: 917.515.7585 E[email protected]

Connor Grogan, Vice President: T: 860.707.5754 E[email protected]

Ted Malpiede, Senior Analyst: T: 781.752.6001 E[email protected]

Ben Stevenson, Associate: T: 857.317.2785 E: [email protected]

Image

  • Digitization beyond just distribution: Brands that were traditionally offline continue to seek additions to bring them online as quickly as possible, and many of these partners are opportunistically acquiring brands themselves. The incredible growth in the eCommerce Aggregator space, driven both by traditional M&A activity and high-value VC investment, continues to dominate the headlines. Additionally, consumer companies continue to invest in areas like CRM and content marketing to extend the product experience and further influence consumers’ decision-making.

  • Consolidation focused on higher-order territories: Where M&A activity historically skewed toward product category or aisle consolidation has shifted into higher-order need-state territories and solutions. For example, owning the hand cream aisle has taken a back seat to owning a total care story, and owning healthy eating has been replaced by owning total lifestyle. Further consolidation is expected as many product categories and store aisles remain highly fragmented.

How to win in retail today? Be nimble and think broader

For consumer & retail companies, the ground is constantly shifting. Spiking and fickle consumer demand, supply chain snarls, inflation, and fast-evolving consumer preferences are reverberating throughout the industry. These shifts are affecting every aspect of a retailer’s business—from sales and marketing strategy to inventory and supply chain management. 

What Are Consumers Looking For?

Consumers expect more from retail companies today. They demand an easy, efficient, and enjoyable experience above all else. They increasingly expect retailers to meet them exactly where they are, and to meet their expectations instantly, all while displaying a lower capacity for frustration. 

“Retail is as real-time as it’s ever been. Pricing fluctuations, trip-driving behavior shifts, and demand for immediacy—especially given the normalization of same-day delivery and an endless aisle online—have forced everyone in retail to leave room in their long-term plans for adaptations and adjustments.”

– Brian Cohen, Managing Director & Head of Consumer & Retail, G2 Capital Advisors

Rather than temporary, pandemic-related changes that will revert back to normal, we believe these shifts have permanently altered the retail environment. 

Against this backdrop, it is critical for consumer & retail companies to embrace a more nimble and flexible strategy. Today, long-term plans are only as good as how often you revisit them. Management teams must continuously reassess their strategy and make adjustments based on the prevailing market conditions.

How do these trends affect you?

Our consumer & retail team welcomes the opportunity to share our perspectives on today’s consumer and retail environment. We can help you revisit your strategic roadmap, including whether now is the right time to sell your business, continue to grow through acquisitions, or raise external capital. Contact us to start a conversation today or learn more about our expertise in retail.

Image
CLIENT:
Founded in 1928, MTC Logistics (“MTC” or the “Company”), a wholly owned subsidiary of Hoffberger Holdings, Inc. (“HHI”), is a diversified privately held investment company of the Hoffberger family out of Baltimore, MD. MTC is a fifth-generation family business and is recognized as one of the International Association of Refrigerated Warehouses (IARW) North American Top 25 Operations. The Company provides warehousing services including import/export services, repacking, blast freezing, transportation and rail transload services through an operational footprint that includes four distribution centers with more than 38 million cubic feet (over 113,000 pallet positions) of refrigerated and frozen warehouse capacity, serving the ports of Baltimore, MD, Philadelphia, PA, Wilmington, DE, and Mobile, AL. 

SITUATION:After successfully navigating headwinds of the COVID-19 environment, generating strong business momentum, and completing construction of a brand-new operation in Mobile, Alabama, the Company’s stakeholders received interest from a key strategic player. This opportunity would allow HHI to realize its investment and enable management to accelerate the execution of future strategic growth initiatives.  

ENGAGEMENT:
G2 Capital Advisors, LLC (“G2”) was engaged by MTC Logistics as exclusive sell-side advisor. G2 lead a strategic and efficient sell-side transaction process focused on validating the potential interest, managing a fast-pace due diligence process, and closing the transaction under an expedited timeline.

OUTCOME:
The transaction was successfully executed through a sale to Lineage Logistics Holdings, LLC (“Lineage”), the world’s largest and most innovative temperature-controlled industrial REIT, and a portfolio company of Bay Grove. MTC will operate as part of Lineage’s existing footprint of over 400 strategically located facilities totaling more than 2 billion cubic feet of capacity across 19 countries. Accordingly, its customers and associates will benefit from Lineage’s scale, industry-leading technology, values, and customer-centric approach.  

“G2 evaluated key strategic alternatives relative to current market conditions which helped us to determine our strategy. They were instrumental in supporting a sale process, navigating our team through a highly complex process, and exceeding our expectations as to their level of support and expertise. We couldn’t be happier with the selection of Lineage as MTC’s new partner who shares our values and customer-centric approach,” said Harry Halpert, Chairman of MTC Logistics and CEO of Hoffberger Holdings.  

“With Lineage’s partnership, MTC is primed to continue an exciting growth trajectory thanks to the Company’s best-in-class services, strategic presence at key East Coast and Gulf ports, along with its dedication to partnerships with its customers. We are eager to see what opportunities the Lineage-MTC combination will unlock. It was an honor and privilege to represent a business with nearly a century-long family legacy of delivering significant value to the temperature-controlled segment. This transaction is a terrific example of G2’s strategy of partnering with market-leading organizations within our dedicated industry verticals.” said Christopher Casteleyn, Managing Director of Transportation & Logistics at G2 Capital Advisors.  

ABOUT MTC LOGISTICS:
MTC Logistics is a wholly owned subsidiary of Hoffberger Holdings, Inc. (“HHI”) a diversified privately held investment company of the Hoffberger family of Baltimore, MD. MTC Logistics operates four distribution centers with more than 38 million cubic feet of refrigerated and frozen space, serving the ports of Baltimore, MD, Philadelphia, PA, Wilmington, DE, and Mobile, AL. 

ABOUT LINEAGE LOGISTICS:
Lineage Logistics is the world’s largest temperature-controlled industrial REIT and logistics solutions provider. It has a global network of over 400 strategically located facilities totaling over 2 billion cubic feet of capacity which spans 19 countries across North America, Europe and Asia-Pacific. Lineage’s industry-leading expertise in end-to-end logistical solutions, its unrivaled real estate network, and development and deployment of innovative technology help increase distribution efficiency, advance sustainability, minimize supply chain waste, and most importantly, as a Visionary Partner of Feeding America, help feed the world. In recognition of the company’s leading innovations and sustainability initiatives, Lineage was listed as No. 17 in the 2021 CNBC Disruptor 50 list, the No 1. Data Science company, and 23rd overall on Fast Company’s 2019 list of The World’s Most Innovative Companies, in addition to being included on Fortune’s Change The World list in 2020. (www.lineagelogistics.com) 

CONTACTS ON THIS DEAL:

Chris Casteleyn – MD, Transportation & Logistics: T: 415.531.3138 E: [email protected]
Connor Grogan – Vice President: T: 860.707.5754 E: [email protected]
 MEDIA RELATIONS:

Jennifer Johnson, Vice President, Marketing T: 978.204.8050 E: [email protected]
Image

CLIENT:

Biotron Laboratories, LLC (“Biotron”) and Talus Minerals Company (“Talus”), collectively (“the Company”), is a leading producer of premium, food-like speciality minerals and customized mineral solutions serving the nutrition supplement industry. The Company serves a diverse mix of customers that span the globe and provides exceptional service and high-quality products to the greater nutritional and dietary ingredients markets. Headquartered in Ogden, UT, the Company operates with a deeply ingrained, service-first culture. 

SITUATION:

Biotron and Talus, longstanding leading producers of specialty mineral chelates and complexes serving customers globally, organically built a highly scalable platform with premium products and a customer-driven approach. As part of the Companys’ long-term growth strategy, management sought a strategic partner to support its continued growth and expansion. 

ENGAGEMENT:

G2 Capital Advisors, LLC (“G2”) was engaged by Biotron and Talus as its exclusive sell-side advisor. G2 led a highly targeted, strategic, and efficient sell-side transaction process focused on identifying the right partner for the Company to further accelerate the growth of the platform. 

OUTCOME:

In March 2022, the transaction was successfully executed through a sale to Aceto, the provider of choice for differentiated specialty ingredients in the life sciences and advanced technology end markets. Aceto is a portfolio company of New Mountain Capital.

“Through this process with G2 we’ve learned more about the inner workings of our own business than we imagined was left to learn. We leaned on their team for insight and advice and were introduced to a broad array of qualified parties. With the support of G2’s team of seasoned experts we achieved an outcome that exceeded our expectations. Via G2 we have found in Aceto the right fit for ensuring continued success and a growth platform for our business, our customers, and our team,” said Gameil Fouad, PhD, President, Biotron Laboratories, LLC. 

“The partnership between the Company and Aceto will continue to fuel the growth of its platform and allow for the expansion of their commercial reach on an accelerated timeline. We are thrilled to have led our client through a successful transaction and are excited to watch these two groups continue to flourish in this new partnership,” said Victoria Arrigoni, Managing Director and Head of Industrials & Manufacturing at G2 Capital Advisors. 

ABOUT G2:

G2 Capital Advisors provides M&A, capital markets, and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experience C-level executives with specialist investment bankers. We aspire to be the trusted advisor of choice to our clients including corporations and institutional investors. For more information, visit www.g2cap.com 

ABOUT BIOTRON LABORATORIES AND TALUS MINERAL COMPANY:

Biotron Laboratories and Talus Mineral Company, founded in 1979 and 2014, respectively, are affiliated entities that in partnership manufacture and supply leading speciality minerals and nutritional ingredients to global markets. Biotron provides clients excellent customer service, agile processing capabilities, and proprietary production methods to deliver the highest quality ingredients with speed and certainty. The Company provides over 250 products including mineral complexes, custom blends, fortified blends, and chelates, which include magnesium-based, zinc-based, calcium-based and iron-based products. Products include halal, kosher, vegan and organic certified options. The Company’s manufacturing operations are located in Centerville, Utah and Ogden, Utah. For more information visit www.biotronlabs.com and www.talusminerals.com 

ABOUT ACETO:

Aceto is the provider of choice for differentiated specialty ingredients in the life sciences and advanced technology end markets. With business operations in 10 countries, Aceto manufactures and supplies more than 3,000 chemical compounds used principally by the pharmaceutical, nutraceutical, agricultural, and specialty chemical industries. In the last two years, Aceto has made seven acquisitions including Biotron, which has expanded its manufacturing, R&D, and portfolio offerings, transforming the company into a worldwide supplier of critical ingredients with a robust manufacturing footprint. Aceto’s global operations, including a significant presence not eh ground in China, India, Europe and North America, enable the companys’ deep worldwide sourcing and regulatory capabilities. Aceto is well positioned to innovate new solutions, ensure quality and customize products to meet customers’ specific needs. Its expanded capabilities and decades of global sourcing expertise are especially valuable now that supply chain management is a critical strategic issue for companies worldwide. For more information visit, www.aceto.com 

CONTACTS ON THIS DEAL:

Victoria Arrigoni: MD, Head of Industrials & Manufacturing, T: 781.604.9005 E: [email protected]

Mike Williams: Director, Industrials & Manufacturing, T: 917.523.2164 E: [email protected]

Noah Johnson: Sr. Analyst, T: 717.598.8558 E: [email protected]

Ted Malpiede: Sr. Analyst, T: 781.752.6001 E: [email protected]

Matt Ball: Sr. Associate, T: 978.914.4421 E: [email protected]

Image

CLIENT:

Direct Connect Logistix (“DCL” or the “Company”) is a leading, non-asset based, multi-modal, third-party logistics company providing transportation solutions for customers of all sizes. Since its founding in 2009, DCL has developed expertise in the temperature-controlled, time and condition critical truckload segment serving the food, grocery, beverage, and related industries. 

DCL’s unique HUSTLE culture has fueled its growth by defining how the company serves its customers, carriers, investors, employees, and the community at large by providing high performance logistics management solutions that enable sustainable, responsive, and efficient customer supply chains. For more information, please visit: www.dclogistix.com.

SITUATION:                                                                                                

DCL’s management team established a growth strategy focused on the acquisition of complimentary partners who provide talent and expertise in specialty markets.  DCL is focused on four core criteria to evaluate acquisition opportunities: (a) service capabilities which overlap DCL’s core operations; (b) skills or technologies that provide capability outside of DCL’s internal skillset; (c) exploit industry specific scalability; and (d) attract growth-oriented business owners that are seeking to partner with a larger organization.     

ENGAGEMENT:

G2 Capital Advisors, LLC (“G2”) was engaged by DCL as the exclusive buy-side advisor to identify, source and engage with targets that provide transportation and logistics services supporting food, beverage, and grocery market sectors and fit with the Company’s asset light acquisition profile.     

OUTCOME

The transaction was successfully executed on February 17, 2022, through an acquisition of Performance Logistics (“PL”) by DCL.  The combination of Performance Logistics’ refrigerated and frozen food transportation services and large customers in the Mountain West strengthens DCL’s capabilities, customer base and geographic reach.

“G2 identified and sourced a target that was not only a perfect fit but also met all four of DCL’s acquisition criteria.  G2 formed a unique relationship with the target’s ownership, who, at the time of initial engagement, were not seeking a transaction. Through the establishment of genuine trust and deep credibility, the target moved forward with discussions.  “We couldn’t be happier to partner with Performance Logistics. We believe that both companies will benefit as we continue to execute our strategic growth plan. ,” said Richard Piontek, CEO of DCL.

“Performance Logistics fits perfectly into DCL’s unique HUSTLE culture which made the business combination a logical fit.  Given PL’s location in the Mountain West region and deep expertise in refrigerated and frozen food capabilities, the groups will be able to attract talent in a dynamic, growing city and generate a transformative growth curve”, said Christopher Casteleyn, G2’s Managing Director for Transportation & Logistics. “Our team thoroughly enjoyed working with both groups and we look forward to observing the success of what we feel will be a highly accretive acquisition.”   

About G2 Capital Advisors

G2 Capital Advisors provides M&A, capital markets and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor of choice to our clients including corporations and institutional investors.

CONTACTS ON THIS DEAL:

Chris Casteleyn: Managing Director, T&L: T: 415.531.3138 E: [email protected]

Andrew Keleher: Director, T: 860.748.6480 E: [email protected]

Matt Ball: Sr. Associate: T: 978.914.4421 E: [email protected]

Noah Johnson: Sr. Analyst: T: 717.598.8558 E: [email protected]

Image

A capacity crunch amidst high demand

A capacity crunch throughout the transportation, logistics and warehousing sectors continued through the end of 2021. Shifts in consumer spending, tight capacity, supply shortages and ongoing coronavirus threats have impacted how shippers and carriers do business. 

Demand for goods and materials continues to outpace the supply needed to produce and transport goods from points of production to consumption.  U.S. consumers have shifted their consumption habits from services to durables, driven by the pandemic and more time spent at home. Closely related is the trend toward faster and more frequent deliveries, which continues to spur growth in final mile. 

We’ve highlighted some of the key themes that impacted the transportation & logistics industry in 2021 and where shippers and carriers have focused their efforts to combat the supply chain challenges and capitalize on the heightened demand.