NEW YORK – United Central Industrial Supply, a company majority owned by American Securities and the largest mining supply distribution company in North America, has acquired GHX Holdings, a leading fluid transfer and sealing products distributor in the energy market. The combined company is now operating as The United Distribution Group Inc. Terms of the transaction were not disclosed.
As a result of the transaction, The United Distribution Group is a leader in offering industrial supplies and services, from underground mining products to gasket and sealing products, to end users in the energy and natural resources markets.
“The combined business brings together two leaders in their respective end markets, each in a highly fragmented space,” said Matthew F. LeBaron of American Securities. “GHX brings the company meaningful product, customer, vendor, and end market diversification, as well as substantial scale.”
Following the acquisition of GHX, The United Distribution Group will be organized into two business units: United Central, which will distribute essential supplies to the underground mining industry, and GHX, which will distribute industrial fluid transfers and sealing solutions mainly to the energy markets.
“GHX is a significant addition to our offering. The company has long standing, entrenched customer relationships and a highly experienced management team,” said Darrell Cole, President and Chief Executive Officer of The United Distribution Group. “We see significant long-term growth opportunities and attractive market dynamics in the diverse end markets in which we operate. We look forward to working together to realize this growth potential.”
“We look forward to being part of this growing portfolio,” said Daniel Ahuero,Vice President of Mergers & Acquisitions of The United Distribution Group and former Executive Chairman of GHX. “The combined entity has a compelling competitive position and actionable growth opportunities through customer penetration and add-on acquisitions in this highly fragmented industry.”