Genuine Parts Co. to sell EIS to Audax
Genuine Parts Company has entered into a definitive agreement to sell its wholly-owned subsidiary EIS Inc., the Electrical Specialties Group of Motion Industries, to Audax Private Equity.
GPC intends to use the net cash proceeds from the transaction for potential investments for both organic and acquisitive growth, reinvestments in the business, share repurchases and the repayment of debt. The transaction is expected to close by the end of September 2019, subject to the satisfaction of customary closing conditions.
EIS is a fabricator, converter and distributor of electrical process materials, wire, cable and assemblies serving end-user segments in electrical power and related markets. It provides more than 110,000 SKUs from 38 branches and four fabrication facilities to more than 20,000 customers across North America.
"The sale of EIS represents the further streamlining of our operations and another step forward in our strategy to optimize our portfolio and strengthen our focus on sustainable, value-driving initiatives," said Paul Donahue, chairman and chief executive officer of GPC. "Consistent with our ongoing acquisition strategy, we continue to execute on our capital allocation priorities to prudently expand our global footprint and capitalize on the growth prospects for our core businesses, while maintaining a strong balance sheet."
Don Bramley, managing director of Audax, added, "We believe EIS is a quality organization with an experienced management team, loyal customer base, strong partnerships and a proven M&A platform that will complement our portfolio of industry leading companies. Audax will provide the expertise and resources to support the EIS leadership team as it continues to broaden its customer base, expand its offerings to adjacent markets and enhance service and support programs for the benefit of all EIS stakeholders."
INDUSTRIAL SUPPLY MAGAZINE
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