S.P. Richards Sold
Genuine Parts Company has completed the sale of its S.P. Richards operations through two separate transactions, according to a press release.
Genuine Parts Company sold S.P. Richards' core U.S. operations to an investor group led by industry professionals. It also 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.
More detail on the SSE sale can be found here.
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 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 product categories, including general office products, technology products and accessories, office furniture and jan/san and safety supplies, to national and independent business products resellers and jan/san distributors.
"On behalf of the GPC Board and management team, I want to thank Rick Toppin and the S.P. Richards team, whose hard work and dedication has made these transactions possible. Both the Investor Group and H.I.G. are supported by talented and experienced teams, and we are confident they are the right partners to lead these respective operations into the future," says Paul Donahue, chairman and CEO of Genuine Parts Company. "We look forward to working closely with them to support a smooth transition for our employees, customers and supply base, particularly during the ongoing challenges presented by COVID-19."
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."
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