Platinum Equity will acquire US-based Industrial Distribution (IDG) for approximately $113 million (€77 million). The acquisition price includes the purchase of all outstanding shares and options for approximately $102.9 million plus the assumption of all debt.
Shareholders will receive $10.30 per share and option holders will receive $10.30 per share or the exercise price of the options if greater.
Platinum said it will capitalise on synergies between IDG, an industrial supply company, and existing portfolio company Strategic Distribution (SDI), a similar US supply chain management company.
“The SDI management team has already identified several key areas of strategic growth for collaboration with the IDG management team, and we are keen to complement those organic initiatives with continued M&A opportunities”, Platinum’s senior vice president of operations, Jim Hoffer, said in a statement.
SDI was acquired by Platinum in March 2007 following the completion of SDI’s merger with two other Platinum portfolio companies, Project Eagle Holding Corporation and Project Eagle Merger Corporation. That merger was announced in January 2007 and valued at $30 million.
Los Angeles-based Platinum, founded by billionaire Tom Gores, specialises in mergers, acquisitions and operations. The firm has also been active in the automotive and telecommunications spaces.