Genuine Parts Company announced today that it has completed the sale of its wholly-owned subsidiary S.P. Richards Co. Canada Inc. (S.P. Richards Canada) to Novexco Inc. (Novexco), effective January 1, 2020.
S.P. Richards Canada represents the Company's Business Products Group in Canada. S.P. Richards Canada is a full-line, nationwide wholesaler of office supplies, furniture, technology products and facility and breakroom supplies, servicing office products resellers across the country from locations in Vancouver, Toronto, Calgary and Edmonton. In 2019, S.P. Richards Canada's approximate annual revenues were $50 million. The Company intends to use the cash proceeds from the transaction in line with its disciplined capital allocation strategy.
Paul Donahue, Chairman and Chief Executive Officer of GPC, stated, "We are very pleased to complete the sale of S.P. Richards Canada and take another step forward in our strategy to optimize our portfolio. Novexco is a leader in the industry and an excellent partner for our Canadian customers and our employees. We want to thank the entire S.P. Richards team, and in particular our team in Canada, for making this transaction possible."
Denis Mathieu, President and Chief Executive Officer of Novexco, added, "This acquisition is complementary to our current distribution channel. S.P. Richards Canada'swarehouses in Western Canada will help us serve our customers in the West, whereas our existing warehouses in Eastern Canada will help reduce the delivery time to S.P. Richards Canada's customers in the East. We are pleased to expand our presence in Canada and offer an array of products and a robust coast-to-coast distribution service."
Novexco, founded in 1996 and owned by its merchant members, is the largest Canadian owned distributor of office supplies, technology products and furniture. Since March 2018, its commercial activities, the national sales division, the transactional website and the 109 Eastern-Canadian stores, have been grouped under the trademark Hamster. The company also serves Canadian wholesalers under the Chestwood division. Novexco supplies Canadian consumers and businesses from its distribution centers in Vancouver BC, Calgary AB, Edmonton AB, Markham ON, Brampton ON, Toronto ON, Laval QC, Montreal QC and Dartmouth NS. Novexco is part of the Platinum Club of the Best Managed Companies in Canada.