"AEI Execs Team IJS", Air Cargo Magazine, November 18, 2005
Vol.4 No. 123

Can lightning strike twice? Henk Hartong (left) and John Gallahan think so.

 Many will recall that Hartong, a big-time financier, rode to the rescue of the struggling Air Express International in the mid-1980’s and then rode AEI to glory through the booming 1990’s until its $1.15 billion acquisition by Deutsche Post in 1999.

As Hartong was providing the capital, Gallahan was in the trenches, building AEI’s sales and marketing machine as its vice president in charge of both functions before leaving in the mid-1990’s.

Now the two have teamed to run New York-based freight forwarder IJS Global Inc., which Hartong’s company, Brynwood Partners, acquired in 2004 from another industry veteran, Jerry Trimboli.

Gallahan serves as president and CEO and runs IJS Global’s day-to-day business, while Hartong remains in the background.

As to leave no doubt as to its roots, the recipe for IJS Global’s success contains ingredients familiar to those who remember the old AEI: Acquire niche companies with solid reputations and seasoned management, and leverage those acquisitions to grow the overall business. Most recently, IJS Global planted its flag in Asia with the acquisition of ESI Freight in Hong Kong, and ESI Freight (China) ESI’s joint venture in China. Gallahan said that’s just the start of things both abroad and in the U.S.

“What we learned at AEI is that ‘growth-by-acquisition’ works as long as you are selective, don’t overpay, and partner with high quality businesses that give you immediate visibility,” Gallahan said.

“IJS Global will use acquisitions to establish a global presence, and we will rely on the value of the acquired companies to build our brand.”

As AEI expanded in the 1990s, it took pains to retain senior management of acquired companies because they understood how their regions and their customers did business. IJS Global follows the same road map, Gallahan said.

“For example, when we acquired ESI we retained Simon Tam, ESI Freight’s president, and Edmund Lin, ESI China’s president,” he said. “Both men are capable leaders with proven operating experience in Southern China. It was vital we bring them and their teams on board.”

Gallahan is mindful that Hartong, like all venture capitalists, expects a solid return on his investment.

However, Gallahan is secure in the knowledge that Hartong understands the forwarding business, and realizes it takes time and patience to build a competitive global player virtually from the ground up.

“Henk knows this isn’t a two-to-three year proposition,” Gallahan said.

“However, we plan to make substantial progress in that time frame.”