Genuine Parts To Acquire Kaman Distribution For ~$1.3B

Genuine Parts Co's GPC wholly-owned subsidiary, Motion Industries Inc, will acquire Kaman Distribution Group (KDG) from private investment firm Littlejohn & Co LLC for about $1.3 billion in cash.

• Bloomfield, Connecticut-based KDG is a power transmission, automation, and fluid power industrial distributor and solutions provider with operations throughout the U.S. KDG's 1,700 employees serve more than 50,000 customers.
• Genuine Parts expects the acquisition to be accretive to its adjusted earnings in the first year after closing. KDG is expected to generate approximately $1.1 billion in revenue in 2022. 
• The company expects the transaction to close in Q1 of 2022.
• "Motion's highly synergistic acquisition of KDG significantly enhances our scale and further strengthens our market-leading position," said CEO Paul Donahue.
• Genuine parts held $919.1 million in cash and equivalents as of September 30, 2021.
• Price Action: GPC shares closed higher by 0.85% at $133.02 on Wednesday.