PORT WASHINGTON, N.Y. — Systemax Inc. recently announced that its Industrial Products Group, Global Industrial, has signed a definitive agreement to acquire the Plant Equipment Group ("PEG"), a business-to-business direct marketer of maintenance, repair and operations products, from TAKKT America for $25 million in cash, subject to certain customary closing conditions. The acquisition, which will be funded from Systemax's cash on hand, is expected to close this month. PEG generated revenue of approximately $100 million in its 2013 fiscal year.
Headquartered in Milwaukee, Wisconsin, PEG goes to market serving business customers within the North American MRO market through its portfolio of well-established selling brands, including its flagship U.S. brand C&H Distributors; as well as Products For Industry; IndustrialSupplies.com); Avenue Supply (based in Canada); and C&H Productos (based in Mexico).
"We are thrilled to welcome the experienced PEG team to Global Industrial. This strategic acquisition will allow us to strengthen our presence in the Midwest, Canada and Mexico and offer PEG customers an expanded offering of products throughout North America," said Bob Dooley, President of Global Industrial.
Richard Leeds, Chairman and Chief Executive Officer of Systemax, commented, "The North American MRO market is large and fragmented with ample opportunity for growth. This acquisition will allow us to bring additional value to our new and existing customers and build on the success and strong growth of our Industrial Products Group."
Global Equipment Company (d/b/a Global Industrial) is a subsidiary of Systemax Inc. Global Industrial carries over 1,000,000 industrial, material handling and business products for Fortune 1000 companies, small businesses, institutions and government agencies.
Systemax Inc., a Fortune 1000 company, sells industrial and technology products through a system of branded e-Commerce websites, relationship marketers and retail stores in North America and Europe. The primary brands are Global Industrial, MISCO, Inmac Wstore and TigerDirect.