Private equity firm Clayton, Dubilier & Rice plans to acquire a majority stake in SunSource Holdings, Inc., Addison, IL, a fluid power and motion control distributor in the U.S. and Canada. Terms were not disclosed.
This is the second distribution target for the private equity firm in the last few months. CD&R acquired HD Supply’s Waterworks business unit for $2.5 billion in August; soon after it renamed the company Core & Main.
SunSource does not report revenues, but MDM ranks the company 25th on our Top 40 Industrial Distributors list, with estimated revenues in the $500-million range.
SunSource serves a diverse customer base which includes more than 20,000 original equipment manufacturers and end users of hydraulic and pneumatic equipment.
CD&R has a long history of investing in industrial and electrical distribution platforms dating back to its acquisition of Wesco in 1994. The firm also owns Rexel, Roofing Supply Group, Univar and U.S. Foods.
“We see a lot of runway ahead for our business,” said David Sacher, President and CEO of SunSource. “We’ve enjoyed much success and growth by building a team of extraordinary associates who relentlessly focus on delivering unique value and solutions to our customers and suppliers, and we look forward to working with the team at CD&R to accelerate these efforts and energize our organization.”
