Description of Transaction
Sequeira Partners was engaged as a financial advisor to Commercial Solutions to assist in the Company’s review of strategic alternatives available to maximize shareholder value. Through this process, and as disclosed in the Management Circular dated December 18, 2013 (www.sedar.com), the decision was made for Sequeira to further represent Commercial Solutions in a full sell-side process focused on strategic parties with the inclusion of a few financial parties. Sequeira ran a successful sell-side process resulting in the sale to Motion Canada, an indirect wholly-owned subsidiary of Motion Industries and Genuine Parts Company (NYSE: GPC) at a 44.6% premium over the previous day closing share price.
Headquartered in Edmonton, Alberta, Commercial Solutions is one of Canada’s leading independent industrial distributors with 23 Services Centres and approximately 275 employees located across Canada. Commercial Solutions offers more than 160,000 items critical to maintenance repair and operations and original equipment manufacturer customers. The Company represents 450 leading manufacturers and serves over 11,000 customer accounts within a broad cross-section of industries, including oil and gas, forestry, food processing, chemical processing, mining and aggregate, utilities, agriculture and construction.
Motion Canada is an indirect wholly-owned subsidiary of Motion Industries and Genuine Parts Company (NYSE: GPC). Motion Industries is a leading industrial parts distributor of bearings, mechanical power transmission, electrical and industrial automation, hydraulic and industrial hoes, hydraulic and pneumatic components, industrial products, safety products and material handling. Motion Industries has over 550 operations including 14 distribution centers throughout North America and serves more than 150,000 customers from the food and beverage, pulp and paper, iron and steel, chemical, mining and aggregate, petrochemical, automotive, wood and lumber and pharmaceutical industries. Motion Industries, including its operations in the U.S., Canada and Mexico, had 2012 revenues of $4.5 billion.