Essendant Inc., a supplier of workplace essentials, announced that its wholly-owned subsidiary Essendant Co. signed an agreement to acquire Nestor Sales LLC, a wholesaler and distributor of tools, equipment and supplies to the transportation industry. The all cash purchase price is $38.5 million, subject to closing adjustments.
Headquartered in Largo, Fla., Nestor serves multiple end markets including auto aftermarket parts stores, mobile tool dealers, fleet service providers, composite manufacturers, RV manufacturers and e-retailers. It offers more than 24,000 branded and private label products from 10 distribution centers strategically located across the United States. In 2014, Nestor had sales of more than $70 million.
“Nestor accelerates our growth in the automotive aftermarket and complements our MEDCO and overall industrial business while also providing access to new customer segments,” says Robert B. Aiken, Jr., interim president and CEO of Essendant. “As the fastest and most convenient solution for workplace essentials, our scale, operational capabilities and financial strength will enable us to better serve Nestor’s customers. I am pleased to welcome the Nestor employees to our organization,” continues Aiken.
The transaction is expected to be completed during the third quarter of 2015, subject to customary closing conditions. Essendant 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 slightly dilutive to 2015 earnings, and add $0.04 to $0.05 to earnings in 2016.
