The private equity arm of investment firm Brookfield plans to acquire Canadian distributor Gregg Distributors, officials announced Monday.
Gregg, based in Edmonton, operates 26 locations across three provinces and serves a “diversified base” of industrial customers in western Canada. Brookfield officials said that the company is a “leading industrial MRO distributor” with a "differentiated position in the market,” thanks to its product portfolio, fulfillment capabilities and customer service.
Brookfield said that the deal would value Gregg at approximately $1.6 billion Canadian, or about $1.14 billion. The distributor is currently owned by the Gary Gregg family and its employees, who would retain a “meaningful” stake in the business. Additional financial details were not disclosed.
The deal is expected to be completed by the end of the year, pending approval by regulators and other closing conditions.
“Gregg is a high-quality business with a strong market position, resilient cash-flow profile and a differentiated customer value proposition,” Erson Olivan, a managing partner in Brookfield’s private equity group, said in the announcement. “The company has built an exceptional reputation over several decades by providing mission-critical products and outstanding service to customers.”
“We are proud of the business we have built with our employees and the culture that has defined Gregg for more than 58 years,” added Gary Gregg. “Brookfield’s extensive operating expertise, commitment to supporting our customers, and deep knowledge of our end-markets through Brookfield’s long-standing presence in Canada and its broader ecosystem make them the ideal partner for Gregg’s next chapter.”
