Vista Advisory Group Completes the Sale
of Commodity Logistics, Inc.
to Network Global Logistics
(Back
to Research & News)
Los
Angeles, February 1 2007– Vista Advisory Group,
Inc. (“Vista”) announced today that it
initiated and completed the sale of Commodity Logistics
Inc. (“CLI”) to Network Global Logistics
(“NGL”).
CLI
is a full service warehouse and distribution company. The
Company offers a broad range of services including
warehouse and distribution, cross docking, reverse
logistics, pick and pack, kitting, freight transportation
and other value added services. The company has
locations in California, Ohio, Georgia, Indiana and
Canada.
The current management of CLI will retain day-to-day
management control and have operational autonomy while
prospecting crossover sales opportunities with NGL.
Vista’s understanding of CLI shareholder goals
combined with Vista’s numerous industry relationships
enabled it to introduce the two parties in a very discreet
manner. The sales process remained confidential
until the end and the rumor mill that is so common
in transactions never materialized.
James
Thomas, CEO of Commodity Logistics commented, “We
were not actively looking to sell the business given
the growth phase of the Company, however, it became
very apparent to us that the proper strategic fit would
further accelerate our growth. NGL was a perfect
fit with virtually no duplicative services and their
customers are looking for the services that CLI provides. This
transaction not only achieved our financial goals,
but it also provided our existing management team with
more tools and resources to continue in their success
with CLI.”
Vista
remains proactive in the marketplace. Therefore,
although CLI was not actively looking for a buyer,
Vista advised CLI that there was a potential suitor. After
several meetings and conversations with NGL, Vista
determined that CLI fit the profile of a value-added
3PL that could service NGL’s existing customer
base.
Ray
Garcia, CEO of Network Global Logistics, stated, “We
are very enthused about the acquisition of Commodity
Logistics because it allows us to immediately address
requests from our customers to extend our services
to the management of their large scale warehousing
and distribution requirements. Currently, we
do a tremendous job of handling our customers’ time
critical inventory management and transportation needs.
However, our core competency in the warehousing & distribution
area has been supply depots and smaller warehouses
of less than 20,000 sq. ft., where individual components
are received, stored, picked, packed and delivered. CLI’s
core competency is managing large scale facilities,
50,000 to 1 million sq. ft., where they perform fulfillment,
cross docking and pallet load warehousing & distribution. Thus,
the addition of CLI allows us to combine our competencies
and scale our service offering to a much broader and
larger customer solution. Driven by both customer
demand and market opportunity, it’s a natural
progression for NGL to extend its capabilities into
the warehouse and distribution area of supply chain
management. Our ongoing objective is to continue
meeting our customer’s needs by servicing more
aspects of the supply chain, and it’s logical
to apply our quality processes and technology to larger
distribution centers which supply the stocking depots
we currently service.”
Vista Advisory served as the exclusive financial advisor
to Commodity Logistics.
About Network Global Logistics
For over 30 years, NGL has set the standard for reliable
time-critical shipping and logistics services. As
one of the largest independent providers of these
services, its customers rely on NGL to meet their
most vital transportation needs. For more information
about NGL, please visit its website at www.networklogistics.com.
About Vista Advisory Group
Vista
Advisory Group is dedicated to providing expert merger & acquisition, strategic consulting and corporate
finance services to transportation, logistics and distribution
companies. Vista primarily serves privately held middle-market
companies, but also has extensive experience with billion
dollar multinationals and private equity groups. Whatever
the size or geography, Vista’s vision remains the
same, to create value and achieve the goals and objectives
of our clients. For more information about Vista
Advisory, please visit its website at www.vistaadvisory.com.
