H.I.G. Carves Out Piece of Genuine Parts

GPCs very first transaction was the sale of SPRs Cleveland-based Supply Source Enterprises (SSE), made up of The Safety Zone and Impact Products operations, to H.I.G. Capital.

” Our group consists of a number of market leaders who visualize a new, industry-changing alignment and collaboration among manufacturers, wholesalers and resellers,” said Mr. Jones. The acquisition of S.P. Richards core U.S. operations represents a significant action forward in this process, and we are focused on strengthening our equally helpful collaborations and driving long-lasting, sustainable worth creation.”

GPC, through SPR, got Connecticut-based The Safety Zone in May 2016, and Ohio-based Impact Products in June 2014. At the time of these acquisitions, The Safety Zone had revenues of approximately $180 million and Impact Products had incomes of around $85 million.

Openly traded Genuine Parts Business has completed the sale of its S.P. Richards (SPR) operations through two different transactions.

” SSE uses an extensive product portfolio and differentiated value-added services to suppliers servicing a large range of end users throughout a number of end markets,” said Rahul Vinnakota, a handling director at H.I.G. “We anticipate partnering with Steve and the entire management group to support SSEs continued development. H.I.G. will bring extra knowledge and resources to SSE to support management as they continue to expand SSEs consumer base, broaden offerings, and enhance services. Notably, given the important function of these organisations in the COVID-19 pandemic, we stay committed to guaranteeing continuity of service to clients while prioritizing the health and wellbeing of employees.”

The second transaction was the sale of SPRs core US operations– which offer services and products in 4 item classifications: basic workplace products, innovation products and devices, workplace furnishings, and JanSan and safety supplies– to an unknown financier group led by industry experts.

” The sale of S.P. Richards represents the additional streamlining of our operations and a considerable advance in our long-lasting technique to enhance our portfolio,” stated Paul Donahue, the chairman and primary executive officer of GPC. “With this divestiture, we will continue to opportunistically expand our global footprint and strengthen our focus on sustainable, value-driving initiatives connected with our faster growing and higher margin automobile and commercial services.”

H.I.G. concentrates on providing financial obligation and equity capital to small and medium-sized companies and buys management buyouts, recapitalizations, and corporate carve-outs of both successful in addition to underperforming manufacturing and service companies. Founded in 1993, H.I.G. has invested in more than 300 companies and has a current portfolio of 100 companies with combined sales in excess of $30 billion.

Genuine Parts Company (NYSE: GPC) is a supplier of automotive replacement parts, industrial replacement parts and materials and company products. The Atlanta-headquartered company has a circulation network with more than 3,600 around the world and had incomes of more than $19 billion in 2019.

Harris Williams and Robert W. Baird are the monetary consultants to H.I.G. Capital on this deal, J.P. Morgan is the monetary advisor to GPC, and B. Riley Financial advised the unidentified investor group.

The Safety Zone and Impact Products manufacture and supply personal protective equipment and janitorial, hygiene, safety and sanitation products to more than 4,000 janitorial and sanitation supply distributors, safety items resellers, foodservice and food processing distributors, and merchants.

” We are excited to participate in this brand-new chapter with H.I.G. Capital,” stated Steve Schultz, CEO and president of SSE. “We have been fortunate over the last few years with the support of Genuine Parts Company to execute on our tactical strategy. We are excited about SSEs growth potential customers and think our workers and customers will benefit tremendously from H.I.G.s assistance as we embark on our next development stage.”

The sale of S.P. Richards operations through these 2 deals completes the sale of the business which GPC obtained in 1975. In January 2020, GPC closed the sale of S.P. Richards Canada to Montreal-based workplace products supplier Novexco. In 2019, S.P. Richards Canadas approximate annual earnings were $50 million.

Private Equity Professional|July 2, 2020

protective equipment

“We have actually been fortunate over the last few years with the assistance of Genuine Parts Company to perform on our strategic plan.” SSE provides a substantial item portfolio and differentiated value-added services to suppliers servicing a broad variety of end users across a number of end markets,” said Rahul Vinnakota, a managing director at H.I.G. “We look forward to partnering with Steve and the whole management group to support SSEs continued development. The acquisition of S.P. Richards core U.S. operations represents a major step forward in this procedure, and we are focused on strengthening our equally advantageous collaborations and driving long-lasting, sustainable worth production.”

The sale of S.P. Richards operations through these 2 deals finishes the sale of the business which GPC acquired in 1975. In January 2020, GPC closed the sale of S.P. Richards Canada to Montreal-based workplace materials supplier Novexco.

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