A wholly owned subsidiary of Essendant Inc., a supplier of workplace essentials, has signed an agreement to acquire Nestor Sales LLC, a leading wholesaler and distributor of tools, equipment and supplies to the transportation industry. Essendant is acquiring the business in an all-cash transaction worth $38.5 million, subject to closing adjustments.
Headquartered in Largo, Florida, Nestor serves multiple end-markets, including aftermarket auto parts stores, mobile tool dealers, fleet service providers, composite manufacturers, RV manufacturers and e-retailers. The company 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,” said Robert 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.”
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 4 cents to 5 cents per share to earnings in 2016.
