Genuine Parts Company (NYSE: GPC) on Thursday announced it has entered into a definitive agreement to acquire Kaman Distribution Group under GPC’s wholly-owned subsidiary, Motion Industries, Inc. The acquisition of KDG from private investment firm Littlejohn & Co. is valued at approximately $1.3 billion, according to GPC.
The transaction is expected to close in the first quarter of 2022. KDG ranks No. 3 on MDM’s most recent Top Distributors list of power transmission/bearings distributors and No. 7 for top fluid power distributors. Motion, headquartered in Birmingham, Alabama, ranks No. 5 among the top 40, No. 1 in PT/bearings, No. 3 in fluid power and No.23 in electrical, data and security.
“Motion’s highly synergistic acquisition of KDG significantly enhances our scale and further strengthens our market-leading position,” says Paul Donahue, chairman and CEO of GPC. “In addition, this combination creates opportunities for accelerated long-term growth, profitability and cash flow.”
Headquartered in Bloomfield, Connecticut, KDG has 1,700 employees and more than 50,000 customers. Recently in acquisition mode itself, KDG in October announced its acquisition of integrator and inspection company Integro Technologies Corporation.
KDG is expected to generate approximately $1.1 billion of revenue in 2022, according to GPC. “We are very pleased to combine our two great businesses and leverage our collective resources and expertise to accelerate profitable growth,” says Ben Mondics, president and CEO of KDG.
Adds Donahue,”Our Motion team, led by Randy Breaux, is eager to bring together the world-class talent and industrial expertise of these two organizations to build an even stronger business. We look forward to extending our leadership position and creating significant shareholder value together as a premier leader in industrial solutions.”
Also see: MDM’s recent podcast with Breaux, where he addresses pandemic leadership and plans for 2022.
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