United Stationers to acquire O.K.I Supply
United Stationers signed a stock purchase agreement to acquire O.K.I. Supply Co. for $90 million.
Based in Cincinnati, O.K.I. is a welding, safety and industrial products wholesaler, serving the gases and welding industry for 75 years. O.K.I. has annual revenues of approximately $150 million, offering 80,000 premium manufacturer-branded and private label products. O.K.I. sells to more than 9,000 independent distributors across multiple channels through nine distribution centers located across the U.S. It also has operations in Canada and Dubai.
The transaction is expected to be completed in November 2012, subject to customary closing conditions. United Stationers plans to fund this acquisition through a combination of cash on hand and cash available under its revolving credit facility.
"The O.K.I. acquisition represents a very important step forward for our wholesale industrial products platform," said Cody Phipps, president and chief executive officer of United Stationers. "It is a highly-respected company with a strong and growing position in the welding and safety industries. O.K.I.'s deep product knowledge, commitment to customer service, and dedicated employees complement the same capabilities in our ORS Nasco business, and will benefit from the logistics capabilities and financial strength of United."
"We are pleased to have the opportunity to join United Stationers and ORS Nasco, and we see it as a perfect fit for our customers, suppliers and company," said Bill Rice, president and chief executive officer of O.K.I. "The scale and capabilities that this partnership represents uniquely positions us to bring additional value to our customers enabling them to succeed in an evolving market."
INDUSTRIAL SUPPLY MAGAZINE
The November/December issue of Industrial Supply magazine features an in-depth cover story about Kimball Midwest. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and Mike Marks, as well as interviews with numerous product and distribution industry experts.
