United Stationers announced Sept 11 that its wholly-owned subsidiary, United Stationers Supply Co., signed an agreement to acquire MEDCO, a U.S. wholesaler of automotive aftermarket tools and supplies, and its affiliates including G2S Equipment de Fabrication et d'Entretien ULC (G2S), a Canadian wholesaler.
The all-cash purchase price is $130 million, subject to closing adjustments, with up to an additional $10 million to be paid over three years based on performance.
Headquartered in Philadelphia, MEDCO is North America's largest combined Paint, Body and Equipment (PBE) and Tool & Equipment wholesaler in the automotive aftermarket. With more than 50,000 products from more than 350 manufacturers, MEDCO serves traditional distributors, retailers and mobile tool dealers through nine distribution centers across the US. G2S, through three distribution centers, provides a similar offering to automotive aftermarket and industrial distributors and mobile tool dealers located across Canada. Together, MEDCO and G2S annual sales are approximately $240 million.
Based in Deerfield, Ill., United Stationers stocks a broad assortment of more than 140,000 items, including technology products, traditional office products, janitorial and break room supplies, office furniture, and industrial supplies. The company’s network of 65 distribution centers enables it to deliver overnight to more than 90 percent of the U.S. and major cities in Canada and Mexico.
“We are excited to join United Stationers and to become a key part of their diversification and profitable growth initiatives,” said Andrew Keim, MEDCO President. “Their scale, operational capabilities and financial strength will enable us to better support our existing customers while continuing to grow our business.”
“MEDCO and G2S advance a key pillar of our strategy, diversifying into higher growth and margin channels and categories,” said P. Cody Phipps, United Stationers’ president and chief executive officer. “Both are leaders in the growing automotive aftermarket and will expand our reseller customer base. Additionally, these businesses complement our existing industrial platform with their deep product knowledge and exceptional customer service,” continued Phipps. “I am pleased to welcome the MEDCO and G2S employees to our organization.”
The transaction is expected to be completed during the fourth quarter of 2014 and is subject to regulatory approval and customary closing conditions. United Stationers plans to fund this acquisition through a combination of cash on hand and cash available under its revolving credit facility.
For more information, contact MEDCO at 215-492-6700.
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