On January 3, 2022, Motion Industries, Inc., a leading distributor of maintenance, repair, and operation replacement parts, and a premier provider of industrial technology solutions, completed the purchase of Kaman Distribution Group (“KDG”). This strategic and highly synergistic transaction broadens the market for this premier leader in industrial solutions and significantly enhances scale and strengthens the market-leading position of Motion, creating opportunities for accelerated organic growth.
Motion distributes more than 10 million industrial products and is a wholly owned subsidiary of Genuine Parts Company (NYSE: GPC). According to Paul Donahue, Chairman and Chief Executive Officer of GPC; "We are excited to announce this strategic investment in our Industrial business. Motion's highly synergistic acquisition of KDG significantly enhances our scale and further strengthens our market-leading position. In addition, this combination creates opportunities for accelerated long-term growth, profitability, and cash flow. Our Motion team, led by Randy Breaux, is eager to bring together the world-class talent and industrial expertise of these two organizations to build an even stronger business. We look forward to extending our leadership position and creating significant shareholder value together as a premier leader in industrial solutions."
Motion North America has over 600 locations, including 25 distribution centers, and Motion Asia Pacific has nearly 150 locations, including eight distribution centers in the region of Australasia. With approximately 9,000 employees, Motion serves more than 170,000 customers in the equipment and machinery, food and beverage, pulp and paper, iron and steel, chemical, mining and aggregate, petrochemical, automotive, semiconductor, wood and lumber, medical and pharmaceutical industries.
The strategic addition of KDG will significantly boost Motion’s concentration in core industrial products and services as well as in the growing technical automation arenas, including precision engineering. As a leading power transmission, automation and fluid power industrial distributor and solutions organization KDG provides electro-mechanical products, bearings, power transmission, motion control and electrical and fluid power components to MRO and OEM customers. Headquartered in Bloomfield, Connecticut, KDG’s 1,700 employees serve more than 50,000 customers from approximately 220 locations across the United States and Puerto Rico.
“It’s a very exciting time; this transformative move will be highly beneficial to everyone involved, especially for customers of our combined entities,” said Motion President Randy Breaux. “Our customer service will be the best it’s ever been with deepened and expanded capabilities. In addition, KDG shares many of our same cultural beliefs, principles, and ambitions, including our commitment to providing superior service and value to our customers. We look forward to welcoming the highly talented KDG associates to the Motion team.”
Ben Mondics, President and Chief Executive Officer of KDG, stated, "Motion is a nationally recognized brand and a market leader in industrial distribution. We are very pleased to combine our two great businesses and leverage our collective resources and expertise to accelerate profitable growth. We appreciate the exceptional efforts of our employees who make our company so great, and we are confident Motion is the natural partner for continued long-term success."
With KDG expecting significant revenues in 2022, the acquisition is anticipated to influence the growth of GPC’s adjusted earnings in the first year after closing.
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