United Stationers Inc. USTR announced today that its wholly-owned subsidiary, United Stationers
Supply Co., signed a stock purchase agreement to acquire 100% of the
outstanding shares of O.K.I. Supply Co. (O.K.I.) for an all-cash purchase
price of $90 million.
Based in Cincinnati Ohio, O.K.I. is the largest independently-owned welding,
safety and industrial products wholesaler in the country, 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
strategically located across the U.S. It also has operations in Canada and
Dubai, UAE that are positioned for strong growth.
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 transaction is expected to be approximately
$0.07 accretive to earnings in 2013, net of one-time integration costs.
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