Genuine Parts Company Sells S.P. Richards
Genuine Parts Company announced today that it’s completed the sale of its S.P. Richards operations through two separate transactions.
The company sold sold S.P. Richards’ core U.S. operations to an Investor group led by industry professionals for an undisclosed sum, and has sold S.P. Richards’ Supply Source Enterprises business (“SSE”), comprised of The Safety Zone and Impact Products operations, to an affiliate of H.I.G. Capital, also for an undisclosed sum.
GPC expects to use the net cash proceeds from the transactions to enhance its cash position for capital allocation and to repay debt.
S.P. Richards Co. is a leading national business products wholesaler that distributes more than 98,000 products to 9,000 resellers and distributors throughout the United States from a network of 44 locations. Its core U.S. operations offer products and services in four primary product categories, including general office products, technology products, and accessories, office furniture and JanSan and safety supplies, to national and independent business products resellers and janitorial supply distributors.
The Safety Zone and Impact Products operations specialize in providing personal protective equipment and janitorial, safety, hygiene and sanitation products to a diversified customer base, including janitorial and sanitation supply distributors, safety products resellers, foodservice and food processing distributors and retailers.
Paul Donahue, Chairman and Chief Executive Officer of GPC, stated, “The sale of S.P. Richards represents the further streamlining of our operations and a significant step forward in our long-term strategy to optimize our portfolio. With this divestiture, we will continue to opportunistically expand our global footprint and strengthen our focus on sustainable, value-driving initiatives associated with our faster growing and higher margin automotive and industrial businesses.”
Yancey Jones, on behalf of the Investor Group, said, “Our group comprises several industry leaders who envision a new, industry-changing alignment and partnership among manufacturers, wholesalers and resellers. This represents a shift in the traditional industry supply chain that will eliminate redundant costs and help all partners become more competitive. The acquisition of S.P. Richards’ core U.S. operations represents a major step forward in this process, and we are focused on strengthening our mutually beneficial partnerships and driving long-term, sustainable value creation.”