SunSource to acquire United Distribution Group
SunSource Holdings Inc., a distributor of fluid power and fluid process components and systems in the U.S. and Canada, announced a definitive agreement to acquire The United Distribution Group Inc.
Bristol, Tennessee-based UDG is 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.
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 over 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 and United Central Industrial Supply.
"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."
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
