One of North America's largest broad-line industrial distributors is going private.
Private equity firm Nautic Partners announced Feb. 24 that it has inked a deal to acquire Vallen Distribution from the Sonepar Group, with the deal to close "as soon as possible" following regulatory approval.
Vallen is the lone industrial products brand of electrical products distribution giant Sonepar. Belmont, NC-based Vallen was formerly known as Hagemeyer North America-Industrial Distribution Group until it rebranded in 2016. Vallen was No. 12 on Industrial Distribution's 2021 Big 50 List on account of its $1.7 billion to $2.0 billion in 2021 sales that the company shared to ID.
"This partnership with Nautic marks an exciting new chapter for Vallen, with a focus on accelerating performance while continuing to provide our customers the excellent service, solutions, and products they expect," said Chuck Delph, Vallen CEO. "We are eager to move forward with Nautic’s support enhancing our strong relationships with customers, suppliers, and our Vallen team.”
With roots dating back to 1865, Vallen is a distributor of indirect industrial supplies that covers a broad spectrum of MROP categories. It also provides integrated supply solutions and vendor-managed inventory to individual customer facilities. The company also brands itself as a leader in technical services, with offerings that include safety equipment inspection, maintenance, certification and solution design.
"Vallen is led by CEO Chuck Delph and a deep management team. We are excited about Chuck and the team’s ability to accelerate the business’ growth trajectory in the coming years, and are thrilled to partner with them to support the company’s future efforts," said Chris Pierce, Nautic managing director. "Additionally, we are excited to add another industrial distribution investment to our portfolio, as well as to lean on our prior experience with corporate carveouts to help Vallen successfully transition to a standalone organization."
"Vallen is a scaled player with a strong brand name in the industrial distribution market," added Andrew Brewster, Nautic senior vice president. "The company’s value proposition is rooted in technical product knowledge, deep experience with integrated supply services, and excellent customer service. We are excited to support management in carving out the business and executing on their growth plan."
McDermott Will & Emery LLP represented Nautic in the transaction and BMO Harris Bank, Capital One, N.A. and Wells Fargo, N.A. led the financing for the transaction. J.P. Morgan Securities LLC and Jones Day advised Sonepar.
Vallen joins Harrington Industrial Plastics as a second industrial distributor for Nautic. The middle-market PE firm was previously the owner of fastener distributor Endries International (No. 29 on Big 50) until it was sold in late 2018. Nautic also owns cutting tool manufacturer Simonds International.