One Equity Partners, a middle market private equity firm, today announced that it has completed the acquisition of ORS MEDCO, a wholesaler of maintenance and repair focused non-discretionary and consumable industrial and automotive aftermarket products, from Essendant, Inc. in a corporate carve-out transaction. Financial terms of the transaction were not disclosed.
Headquartered in Deerfield, IL, ORS MEDCO distributes safety and security products, tools, body shop & repair products, welding, paint, chemicals, and abrasives operating through its ORS Nasco, Medco, and Nestor distribution networks. The Company has 1,100 employees and 35 facilities that serve over 15,000 independent distributors, national distributors and online resellers.
“We are excited to partner with the management team led by CEO Chris Kempa to provide them with capital and operational resources that will allow them to pursue the next chapter of growth as an independent company,” said David Han, Senior Managing Director at OEP. “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.”
The non-discretionary and consumable industrial and automotive aftermarket supplies sector in which ORS MEDCO operates totaled $42 billion in North America in 2018, according to industry data.
“OEP has an excellent reputation for growing industrial businesses in partnership with management that position them for accelerated growth and market expansion,” said Kempa. “We are thrilled to become an independent company through our partnership with OEP and believe that 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.”
Chris Kempa will work closely with Manuel “Manny” Perez de la Mesa, Vice Chairman and recently retired CEO of Pool Corporation, who will serve as Chairman of ORS MEDCO. Mr. Perez de la Mesa brings a proven track record of increasing Pool Corporation’s revenue (10% CAGR) and total shareholder return (22% CAGR) during his 20-year tenure leading Pool Corporation.
About One Equity Partners
One Equity Partners is a middle market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm builds market-leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long-term value for its partners. Since 2001, the firm has completed more than 180 transactions worldwide. OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, and Frankfurt. For more information, please visit www.oneequity.com.
