SunSource Holdings Inc., a major distributor of fluid power and fluid process components and systems in the U.S. and Canada, has announced a definitive agreement to acquire The United Distribution Group, Inc. (UDG), a distributor of fluid conveyance and related products and services primarily serving maintenance, repair and operations needs across energy, mining and other industrial end markets. Terms of the transaction were not disclosed.
This is the second major acquisition for SunSource this year, as it announced in April it would acquire Ryan Herco Flow Solutions, a specialty distributor of flow solutions for mission-critical fluids, from Greenbriar Equity Group. The moves come less than a year after SunSource was purchased by private investment firm Clayton, Dubilier & Rice last November.
UDG is one of the largest distributors of industrial components and assemblies in North America. With a national footprint often located near high-growth energy markets, UDG combines a comprehensive product offering of more than 140,000 SKUs with a suite of value-added services to position the company as a strong partner to its blue-chip customer and supplier bases. UDG operates through two subsidiaries: GHX Industrial (“GHX”), a distributor of fluid conveyance and sealing products serving upstream energy, downstream energy and diversified markets, and United Central Industrial Supply (“UC”), provider of MRO supplies to underground and surface mining sites and other industrial facilities in North America.
“UDG shares many core business strengths and cultural values with SunSource, and the GHX and UC businesses are highly complementary with SunSource’s existing business and product portfolio,” said David Sacher, CEO of SunSource. “The combined company will occupy a strengthened position in the marketplace, benefiting from increased scale and an enhanced set of organic and inorganic growth opportunities, particularly in the fluid conveyance market. We believe the combination will drive incremental opportunities to create value for our customers, employees and suppliers, while also accelerating growth, profitability improvement and shareholder value creation.”
“We are extremely excited about this important strategic step that will enhance the prospects for both UDG and SunSource,” said Darrell Cole, President and CEO of UDG. “Both companies enjoy deep relationships with customers and suppliers, a commitment to value-added capabilities that address complex problems and a talented team of professionals committed to customer satisfaction and a relentless pursuit of continuous improvement.”
The United Distribution Group Inc.
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