Wynnchurch Capital has acquired ORS Nasco, a North American wholesale distributor of industrial maintenance, repair, and operations (MRO) supplies, from One Equity Partners.
ORS Nasco serves distributors throughout the United States and has more than 190,000 SKUs of products sourced from more than 250 OEMs. The company’s products span several categories, including safety, hand tools, chemicals, and welding supplies. Founded in 1959, ORS Nasco is headquartered in Tulsa, Oklahoma, and has 13 distribution centers across North America.
In October 2019, One Equity Partners carved out ORS MEDCO, a distributor of maintenance and repair products to the industrial and automotive aftermarket sectors, from Essendant (formerly United Stationers). The acquired business operated through three distribution networks Medco, Nestor, and ORS Nasco. Essendant acquired ORS Nasco in 2007 from Brazos Private Equity.
“We are committed to providing our diverse customer base with access to industry-leading brands and superior service and are excited to partner with Wynnchurch as we continue our next phase of growth. Wynnchurch understands the strong value proposition we provide, and we believe together we can continue to transform the industrial wholesale market,” said Kevin Short, the CEO of ORS Nasco.
Wynnchurch invests in middle-market companies with revenues of $50 million to $1 billion, specializing in recapitalizations, growth capital, management buyouts, corporate carve-outs, and restructurings. Sectors of interest include aerospace, defense, and government; building products and materials; consumer and food; manufacturing, industrial, and transportation; and business services and distribution.
In January 2024, Wynnchurch closed its sixth private equity fund, Wynnchurch Capital Partners VI LP, with $3.5 billion of committed capital. Wynnchurch was founded in 1999 and is headquartered in the Chicago suburb of Rosemont, with additional offices in Los Angeles (El Segundo) and New York City.
“As a market leader in industrial MRO wholesale distribution, ORS’s customer-centric focus on delivering best-in-class service in a growing portion of the industry aligns well with our investment philosophy,” said Greg Gleason, a managing partner at Wynnchurch. “We are excited to carve ORS out as a standalone platform and partner with Kevin and the management team with the resources to drive significant growth.”
“The management team at ORS Nasco has done a remarkable job growing the company into the largest pure-play wholesaler of industrial supplies in the country,” said Kevin Hanley, a principal at Wynnchurch. “ORS is uniquely positioned to capture share as OEMs look to consolidate their supply chains and leverage wholesale distribution as a key channel partner. We look forward to working with the ORS Nasco leadership team as the company continues to execute on exciting organic initiatives and strategic M&A.”
“We would like to sincerely thank the ORS Nasco management team, as our partnership enabled us to build a well-positioned business for continued growth and success with its new shareholders,” said Jamie Koven, a partner at One Equity Partners.
One Equity Partners (OEP) is a middle-market private equity firm focused on North America and Europe’s industrial, healthcare, and technology sectors. Typical equity investments range from $30 million to $300 million.
In April 2022, OEP closed its latest fund, One Equity Partners VIII LP, with committed capital of $2.75 billion. The new fund was oversubscribed and closed above its increased hard cap. OEP, with offices in New York, Chicago, Frankfurt, and Amsterdam, spun out of JP Morgan in 2015 and has closed more than 300 transactions worldwide since its founding in 2001.
MidCap Financial, as the Administrative Agent, Sole Bookrunner, and Sole Lead Arranger, provided $362.5 million of senior secured debt to back the acquisition of ORS Nasco by Wynnchurch Capital. The MidCap transaction team was led by Managing Director Puja Parekh.
MidCap Financial, in alliance with its investment manager Apollo Capital Management, is a middle-market focused finance firm that provides debt instruments of $10 million to $750 million to companies across all industries.
Jefferies was the financial advisor to One Equity Partners on this transaction.
© 2024 Private Equity Professional | August 13, 2024
