Milwaukee-based Plant Equipment Group is under agreement to be sold to Global Equipment Company Inc. for $25 million in cash.
Global Equipment Company (dba Global Industrial), a subsidiary of Port Washington, N.Y.-based Fortune 1000 company Systemax Inc., plans to purchase Plant Equipment Group from TAKKT America, a segment of German business-to-business equipment direct marketing firm TAKKT Group. The companies expect the transaction to close by the end of the month, subject to closing conditions.
Plant Equipment Group is a B2B direct marketer of maintenance, repair and operations products in the U.S., Canada and Mexico. Its selling brands include C&H Distributors, Products for Industry, IndustrialSuppies.com, Avenue Supply and C&H Productos. PEG’s 2013 revenue was about $100 million.
Global Industrial carries more than 1 million industrial, material handling and business products for Fortune 1000 companies, small businesses, institutions and government agencies.
“We are thrilled to welcome the experienced PEG team to Global Industrial. This strategic acquisition will allow us to strengthen our presence in the Midwest, Canada and Mexico and offer PEG customers an expanded offering of products throughout North America,” said Bob Dooley, president of Global Industrial.
“The North American MRO market is large and fragmented with ample opportunity for growth,” said Richard Leeds, chairman and chief executive officer of Systemax. “This acquisition will allow us to bring additional value to our new and existing customers and build on the success and strong growth of our Industrial Products Group.”
“With the sale to the strategic competitor Global Industrial, PEG will have better opportunities to grow than it would have been the case under the TAKKT umbrella,” said TAKKT CEO Felix Zimmermann. “With this step TAKKT can focus its resources to become an integrated multi-channel company.”