Case Study

Stevenson sells marine transportation and logistics company to Fortune 50 buyer exceeding client’s price expectations.

Client
Garvey Marine
Business category
Logistic Industry –
Transportation

Sale background
Garvey Marine is a $20 million company that provides barge movement and storage services along 151 miles of Illinois River waterways from Pekin in downstate Illinois north to Lake Michigan. The company was formed in 1988 and has grown through a series of acquisitions.

With outstanding operations and management teams, a first-class fleet of vessels from six harbors, Garvey serves its customers with dedicated coal, aggregate and sand towing services and marine construction services from its main facility in Lemont, Illinois.

American River Transport Company (ARTCO) was the buyer found by Stevenson & Company. It is a subsidiary of Fortune 50 giant Archer Midland Daniels (AMD) and is a national leader in marine transportation services. It operates 2,100 barges, 75 towboats and 29 line boats.

The acquisition of Garvey Marine was an opportunity for ARTCO to gain access into Chicago via the Lemont Harbor, further increasing its dominance as transportation services provider for agricultural and other bulk material transport.

Why Stevenson & Company was retained
Bob White, President and CEO of White International, the company that owned Garvey Marine, was referred to Stevenson & Company by a trusted business associate. In a review with several M&A firms, Stevenson & Company was awarded the assignment because of its:

• Experience and seasoned staff of experts
• Proven ability to negotiate with prospective buyers ranging from large corporations to smaller entrepreneurs
• Team’s “good fit” with Garvey’s executives

The Stevenson Advantage
Stevenson & Company used its industry experience and its ability to forge a good working relationship with the client team at Garvey Marine to:

• Strategically position the business as a unique opportunity to both corporate and financial buyers
• Articulate well-supported future growth plans
• Restate financials with clear owner add-backs and adjustments
• Maintain project momentum while management continued to focus on company performance
• Facilitate price negotiation with sophisticated buyers

Deal summary and results
The results of this highly successful transaction, completed in less than nine months, included:

• Purchase by a subsidiary of a Fortune 500 company, Archer Daniels Midland
• Offers from sixteen prospective buyers, both corporate and private equity, and a purchase price significantly exceeding our client’s original expectations
• A totally cash transaction

As a result of the success of the sale, Stevenson & Company was retained to assist in the sale of three additional White International companies.

Client response
According to Mr. White, who conducted the original search, “It came down really to a couple of companies that I was interested in and Stevenson was one of them. So, I really had kind of a sell-off. I had both come in one morning and make a presentation. And there was no question at all. If they could sell me the way they did, far above the number two possibility, then they were going to get the best price for my company.”

After the sale was completed, Lita Jiminez, CFO of White, stated, ““I would highly recommend Stevenson & Company…we were very pleased with how things turned out.”