Canadian multichannel operator Novexco has acquired the local operations of S.P. Richards (SPR) from the wholesaler’s parent company Genuine Parts. SPR Canada services office products resellers across the country from five locations in Vancouver, Toronto, Calgary and Edmonton. Its sales in 2019 were approximately US$50 million. Novexco CEO Denis Mathieu said the acquisition was complementary to his group’s current distribution channel, expanding its presence in the west of the country and enabling it to better service buyers in the east. SPR Canada distributes more than 16,000 products of both branded and private label business supplies and Novexco said its clients would now have access to a broader selection. A long-term agreement has also been put into place with SPR for the continued
availability of its private label brands across all Novexco customer channels and markets in Canada. Genuine Parts CEO Paul Donahue commented: “We are very pleased to complete the sale of S.P. Richards Canada and take another step forward in our strategy to optimise our portfolio. Novexco is a leader in the industry and an excellent partner for our Canadian customers and our employees. We want to thank the entire S.P. Richards team, and in particular our team in Canada, for making this transaction possible.” SPR CEO Rick Toppin added: “The sale of S.P. Richards Canada allows us to focus our business on the US market. In undertaking this process, it became clear that Novexco was the best partner for our Canadian customers and our employees. We will be working very closely with the Novexco management
Mutschler named Chairman as FireKing is acquired
Denis Mathieu
team to help ensure a smooth transition for our employees, customers and supplier base.” The deal – for which financial details were not revealed – was effective from 1 January 2020. Genuine Parts said it would use the cash proceeds of the sale “in line with its disciplined capital allocation strategy”.
Cott makes water move
International consumer and professional beverages distributor Cott is evaluating strategic alternatives for its coffee, tea and extract business segment as it moves towards becoming a pure-play water solutions provider. The North America-based group has engaged a financial advisor to evaluate the options available to its S&D coffee and tea unit. This business has annual sales of $600 million and is a major player in office coffee services in both the US and Europe. As part of its new focus, Cott also announced plans to acquire North American rival Primo Water Corporation in a $775 million deal. Primo is a leading provider of water dispensers, purified bottled water, and self-service refill drinking water in the US and Canada with annual sales of more than $310 million. The transaction – which is expected to close in March – will create an entity with around $2 billion in annual water sales and a presence in 21 countries.
February 2020
Office products industry veteran Jay Mutschler has been named non-executive Chairman of FireKing International following the company’s acquisition by Champlain Capital. Mutschler – a former US Office Products (USOP), Corporate Express and Staples senior executive – will be working again with ex-USOP CEO Warren Feldberg who is a Managing Partner at Champlain. FireKing President Gary Weisman has also been confirmed as CEO of the manufacturer of fire-resistant filing cabinets. “Our mission is to invest in good companies that provide Jay Mutschler customers with meaningful products and services combined with a history of solid financial performance. FireKing fits this mission perfectly,” said Feldberg. He added: “Jay and I will be working with Gary and the FireKing management team in a variety of collaborative ways, including strategic planning, providing capital for infrastructure, marketing, acquisitions and accessing a network of outside resources.” FireKing – which operates in over 80 countries – will continue to manufacture at its current location in Indiana, maintaining its status as the only US manufacturer of fire-resistant filing cabinets. The company was previously owned by Chicago-based private equity firm Pfingsten. Founded in 2002, Champlain typically invests in manufacturing, consumer products, distribution, healthcare and service businesses with EBITDAs of $3-$15 million. It uses a ‘one-stop’ approach that provides all the equity and debt capital to fund acquisitions without the need for third-party lenders.
NEWS
Novexco buys SPR Canada
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