As part of Endeavour’s ongoing industry efforts in Transportation & Logistics, we got to know industry executive Ray Garcia and formed a partnership to look for a company to buy and build in the space. The idea behind this search effort was to take advantage of Ray’s industry and operational experience in combination with Endeavour’s capital and acquisition expertise.
After looking at several opportunities together, we were approached by an individual business advisor who introduced us to Network Courier (“Network”; prior company name), a company managed by an aging founder who wanted to achieve liquidity but also to see the company continue its 30-year legacy in logistics. Ray and Endeavour viewed Network’s strong brand and positioning in super expedited delivery services nationally as an attractive platform to grow into service parts, fulfillment and international markets.
Following the close of the transaction, it became clear that expansion into new markets and services would require investments in systems, management talent, and likely acquisitions. In year two, the Company rebranded itself as Network Global Logistics (“NGL”) and completed an acquisition of a warehouse logistics provider that the Company could leverage for further growth into fulfillment and critical parts distribution for medical and high tech equipment manufacturers. Shortly after this acquisition, the 2008 recession hit and shipping volumes dropped dramatically across the industry.
Thanks to NGL’s conservatively capitalized balance sheet and our confidence in Ray’s ability to manage costs and also invest in areas critical to long term growth, the Company weathered the recession and began to gain market share. NGL also made an unconventional move towards building its own ground delivery network in an effort to gain more control over quality and capture margin otherwise paid to agents.
With new systems, a centralized operations center, expanded service capabilities and a strong management succession plan in place, NGL grew significantly across all lines of business. After seven years, NGL had emerged as a true industry leader in expedited logistics and same day delivery. Despite a major recession, the Company had more than doubled sales and tripled earnings.
Ray and Endeavour sold the Company in 2012. Ray remains on the Company’s board and NGL continues to thrive today with a new owner and under the leadership of the same management team.