Office Supplies Blog has recently learnt that Essendant’s industrial business, ORS MEDCO, has now been sold to the private equity firm OEP.
A year on from their purchase by Staples, US wholesaler Essendant has taken the decision to sell its industrial business operation, ORS MEDCO to One Equity Partners (OEP).
As OPI reports, the sale will see Essendant’s ORS Nasco, Medco and Nestor operations (which have been merged into one separate entity known as ORS MEDCO) established as a separate business property.
The ORS MEDCO group of companies previously provided automotive, industrial and safety supplies under the Essendant banner.
History Behind Essendant and Formation of ORS Medco
The industrial products group owned by Essendant was formed through a series of acquisitions when the wholesaler went under its previous name of United Stationers.
It was in 2018 that it acquired the distributor ORS Nasco for more than $180 million (approx. £140 million) which was followed by another acquisition in 2014 of the automotive tools and supplies wholesaler Medco for $130 million (approx. £101 million).
A year on from this, the wholesaler purchased the business properties of another automotive company in the form of Nestor Sales for the fee of around $40 million (approx. £31 million)
The Future of Essendant’s Industrial Business
With a current workforce of 1,100 employees and the ownership of 35 facilities that serve more than 15,000 independent distributors, online resellers and national distributors within North America, Essendant’s industrial business, ORS MEDCO, will be headed up by CEO Chris Kempa.
Kempa will be working closely with Manny Perez de la Mesa, who recently retired as CEO of the swimming pools supplies distributor Pool Corporation and will now serving as ORS MEDCO’s Chairman.
Speaking further on the sale to OEP and the future of ORS MEDCO, David Han, Senior Managing Director at OEP said:
“We are excited to partner with the management team led by Chris to provide them with capital and operational resources that will allow them to pursue the next chapter of growth as an independent company.
This acquisition is well aligned with OEP’s historic focus on structuring carve-outs of attractive industrial businesses in close partnership with management teams and corporate sellers.”
Providing his view on what the split from Essendant will mean for the company, Kempa further adds:
“We believe we will be able to increase and expand sales to existing and new customers based on ORS MEDCO’s market-leading wholesale distribution capabilities and continued focus on providing exceptional customer service.”
No further financial information relating to the transaction has been disclosed at this time.