United Stationers To Acquire MEDCO - Quick Facts

(RTTNews) - United Stationers (USTR) announced that its wholly-owned subsidiary, United Stationers Supply Co., signed an agreement to acquire MEDCO, a United States wholesaler of automotive aftermarket tools and supplies, and its affiliates including G2S Equipment de Fabrication et d'Entretien ULC, 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, Pennsylvania, MEDCO is North America's largest combined Paint, Body and Equipment (PBE) and Tool & Equipment wholesaler in the automotive aftermarket. With over 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.

The transaction is expected to be completed in during the fourth quarter of 2014 and is subject to regulatory approval and customary closing conditions.

United Stationers said it plans to fund this acquisition through a combination of cash on hand and cash available under its revolving credit facility. The transaction is expected to be accretive to earnings within the first year.