Market Overview

United Stationers To Acquire CPO Commerce; To Acquire CPO Commerce for $10M


United Stationers (NASDAQ: USTR) today announced that its wholly-owned subsidiary, United Stationers Supply Co., signed an agreement to acquire 100 percent of the outstanding shares of CPO Commerce, Inc., for an all cash purchase price of $30 million, with up to an additional $10 million to be paid in three years based on performance.

CPO is a leading e-retailer of brand name power tools and equipment with proficiency in building and managing high performing online businesses. This transaction significantly expands United's digital resources and capabilities to support resellers as they transition to an increasingly online environment. CPO's expertise will strengthen United's ability to deliver such features as improved product content, real-time access to inventory and pricing, and digital marketing and merchandising. CPO also provides an enhanced digital platform to support United's manufacturing partners.

CPO's fiscal year 2013 sales were $78 million, with a sustained track record of double-digit annual growth. The acquisition is expected to be slightly dilutive to United's earnings per share in its first full year as the company accelerates its digital strategy and investments. The transaction is expected to close on May 30 and is 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.

"We are positioning United to be the premier supplier of business essentials with a focus on winning the shift to online selling. We have an expanding portfolio of e-commerce competencies and have invested in skilled leadership to grow our online business. We expect CPO's e-commerce platform to provide new capabilities to allow us to drive digital services, engage our resellers through online tools, and enable their continued online success. This acquisition is the next step in executing our strategy, and I am pleased to welcome CPO's associates as they become a part of our company," commented P. Cody Phipps, United Stationers' president and chief executive officer.

"We are excited to bring our e-commerce expertise to United Stationers and look forward to leveraging United's strong operational capabilities to better serve our customers and brand partners. We are equally excited to be joining a company with an outstanding, purpose-driven culture," commented Rob Tolleson, CPO's founder and president.

Posted-In: News M&A Press Releases


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