United Stationers Supply Co. buys MEDCO for $130 million, transactions to be completed by the end of 2014
United Stationers, one of US’ largest and most popular distributors of business products in North America have recently announced that its wholly-owned subsidiary, United Stationers Supply Co., has agreed to purchase MEDCO. MEDCO is a United States wholesaler of automotive tools and supplies. This purchase also includes MEDCO affiliates including G2S Equipment de Fabrication et d’Entretien ULC (“G2S”) which is a Canadian wholesaler. The figures for the sale are $130 million and the sale is subject to closing deals and adjustments. There will also be an additional $10 million to be paid over three years based on performance.
MEDCO is North America’s largest combined Paint, Body and Equipment (PBE) and Tool & Equipment wholesaler with headquarters in Philadelphia, Pennsylvania. It has over 50,000 products from more than 350 manufacturers. MEDCO partners with traditional distributors, retailers and mobile tool dealers through its nine distribution centers found all over the US. MEDCO and G2S annual sales are approximately $240 million.
P. Cody Phipps, United Stationers’ president and chief executive officer mentioned in an interview “MEDCO and G2S advance a key pillar of our strategy, diversifying into higher growth and margin channels and categories.” Phipps also added “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.” The CEO ended his interview with the words “I am pleased to welcome the MEDCO and G2S employees to our organization.”
Andrew Keim, MEDCO President also has positive thoughts about the sale. “We are excited to join United Stationers and be part of their strategic diversification initiative.” He said in an interview “Their scale, operational capabilities and financial strength will enable us to better support our existing customers while continuing to grow the business.”
The transaction is expected to be completed in during the fourth quarter of 2014 and is subject to regulatory approval and customary closing conditions. News sources also mention that United Stationers plans to go through with the acquisition of MEDCO through the use of its cash on hand as well as cash available under its revolving credit facility. Sources also mention that the transaction is expected to increase in earnings within the first year.
About United Stationers
United Stationers is a wholesale distributor of business products in North America. It is the biggest and the most established with sales in of nearly $5 billion. United Stationers ranked 484 in 2013 out of the Fortune 500 companies. The company has several divisions: United Stationers Supply Company which supplies business products, LagasseSweet which supplies janitorial and sanitation products, Azerty supplier of technology products, ORS Nasco supplier of industrial products, and MBS Dev, a software supplier. United Stationers maintains 70 warehouses supporting its different divisions. It is proud of its next morning delivery for almost 100,000 products that it supplies to every state in the continental United States. These are true for all orders entered as late as 5PM the previous evening. United Stationers’ headquarters is in Deerfield, Illinois, USA. United Stationers stock market evolution:
About Paul Cody Phipps
Mr. Paul Cody Phipps has been the Chief Executive Officer and President at United Stationers Inc. since his appointment in May 11, 2011. Mr. Phipps has been the Chief Operating Officer of United Stationers Inc. from September 1, 2010 to May 11, 2011, President of United Stationers Supply Co. from October 23, 2006 to September 1, 2010. He also served as Senior Vice President of Operations for United Stationers Inc. before he was appointed as CEO and President. Phipps is a revolutionary leader and has changed the lives of United Stationers employees and customers tor years. He is behind a lot of changes in United Stationers and this latest acquisition is another chance to show his expertise in his field.
MEDCO is one of the biggest players in the general automotive repair and body shop tool and equipment distribution business, acting as a key provider in the Northeast and the rest of the country, with eight warehouses across the United States. Yet, MEDCO has never organized a tool show—until now.
MEDCO is one of the biggest players in the general automotive repair and body shop tool and equipment distribution business, acting as a key provider in the Northeast and the rest of the country, with eight warehouses across the United States. Yet, MEDCO has never organized a tool show—until now.MEDCO is one of the largest and most successful companies that cater to automotive companies and retailers. It is one of the top players in the general automotive repair and body shop tool and equipment distribution business. MEDCO is currently one of the key providers in the Northeast and the rest of the country. Its products have made a huge impact in the automotive repair industry. It currently has eight warehouses across the US. MEDCO is headquartered in Philadelphia, Pennsylvania, USA.
About Andrew Keim
Mr. Andrew Keim is the President of MEDCO, one of the most prominent companies in the general automotive repair and body shop industries. Keim is an innovator, leader and entrepreneur. He has nothing but positive thoughts about this acquisition.