WESCO Sells Integrated Supply Business to Vallen

WESCO Sells Integrated Supply Business to Vallen

PITTSBURGHWesco International announced today that it has entered into a definitive agreement to sell its Wesco Integrated Supply (WIS) business to Vallen Distribution, Inc., a portfolio company of Nautic Partners, LLC, for a purchase price of $350 million. The Company expects to use the proceeds to reduce debt and repurchase shares. The sale will include predominately all of Wesco’s industrial maintenance, repair and operations (MRO) integrated supply business in North America and Europe. The business that is being divested had annual net sales of approximately $784 million in 2023.

“This divestiture supports our portfolio management strategy to prioritize investments and resources in the areas of our business that offer the strongest growth and profit potential. Our WIS team has consistently provided exceptional value to our customers over the years. I am very proud of their accomplishments and thank them for their outstanding customer service,” said John Engel, Chairman, President, and CEO of Wesco.

With a rich, 50+ year history, WIS designs and implements industrial maintenance, repair and operations (MRO) supply chain solutions which significantly reduce total costs and deliver documented savings while improving supply chain performance, including reduced order cycle time and stock-outs.

As a combined company, Vallen and WIS will continue to provide premier supply chain services and offerings to the market and be positioned to invest in innovative solutions that drive success for customers and suppliers worldwide.

Chuck Delph, CEO of Vallen, said, “We are excited to bring together two outstanding supply chain solutions providers through this transaction and see significant opportunity ahead for the combined company. This combination further expands and complements our vision to deliver unique and customizable supply chain solutions for our customers’ indirect spend and enhances our ability to partner with the supplier community.”

Kevin Pugh, Vice President and General Manager, WIS, said, “Over the course of our 50-year history, WIS has become a key provider of integrated supply services and MRO procurement solutions. The combination with Vallen will allow us to deliver an even broader range of solutions for our customers as we continue to drive for excellence and innovation.”

The sale is anticipated to close in the second quarter following customary regulatory approval.

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