Friday November 18, 2011
Eastern Warehouse Distributors Inc. completes Merger with South Jersey Auto Supply, Inc
Langhorne, PA - November 18, 2011 - Eastern Warehouse Distributors Inc. (“Eastern”), a leading wholesale automotive aftermarket parts distributor serving the Eastern Pennsylvania and New Jersey markets, announced a merger with South Jersey Auto Supply III, Inc. (“South Jersey”) through a combination stock / cash transaction. As a result of the merger, Eastern will now operate 32 two-step warehouses, spread throughout Eastern Pennsylvania and lower New Jersey. For 2012, Eastern anticipates combined sales of over $100 million, driven by the 850+ dedicated employees and more than 350 delivery vehicles.
“It is clear that the only way to compete with the billion-dollar big boys in the wholesale aftermarket is more consolidation. We have a 5- year expansion plan to double existing sales with multi-store, multi-state growth through acquisition,” says Steve Thorne, Chief Executive Officer and founder of Eastern. “Advance’s (Advanced Auto Parts Inc.) recent announcement, that 37 percent of their sales are in the wholesale sector, is highly motivating. Either stand up, or sit down. We are dedicated for the long haul and will compete to maintain and grow the wholesale customer base.”
In addition to this merger, Eastern’s new 200,000 square foot distribution center will be opening in Langhorne, PA in 30 days. One half-mile from the existing warehouse and corporate office, this $9 million state-of-the-art facility, designed by Siggins, is built for the purpose of distributing more parts with greater efficiency at a much lower cost of operation. The current 80,000 square foot warehouse will be dedicated to the multiple-line, growing container programs, in addition to expanding the corporate office.
Fairmount Partners acted as Eastern’s financial adviser on the merger with South Jersey. Andrew T. Greenberg, Managing Director and Head of Fairmount’s Industrial and Consumer Products Practice, commented, “We are very pleased to have assisted Eastern and Steve Thorne with the negotiation of this merger with South Jersey. Given the highly complementary operations of Eastern and South Jersey, we believe this transaction represents a terrific outcome for the parties, and the formation of a strong platform for continued expansion.”
About Eastern Warehouse Distributors Inc.
Founded in 1989 and headquartered in Langhorne, PA., Eastern Warehouse Distributors Inc. (dba AutoParts Warehouse) is a leading wholesale automotive aftermarket parts distributor serving the Eastern Pennsylvania and New Jersey markets.
For more information visit www.eapw.com
About South Jersey Auto Supply III, Inc.
South Jersey Auto Supply III, Inc. was founded in 1952 and is a leading wholesale automotive aftermarket parts distributor to the Central and Southern New Jersey markets.
For more information visit www.southjerseyauto.com
About Fairmount Partners
Fairmount Partners is one of the largest independent investment banking firms in the Mid-Atlantic region, focused on middle-market companies. Fairmount Partners provides a range of investment banking and capital advisory services, including merger and acquisition advisory, private debt and equity placements, fairness opinions, valuations and strategic advisory to fuel growth and maximize value for middle market companies. The firm focuses its activities on targeted industries in which it has a record of experience and success. While headquartered in suburban Philadelphia, Fairmount works with companies on a worldwide basis.
Our bankers come from the industries we serve, giving us a unique focus and insight into our clients’ businesses. Our bankers also have extensive experience in the global middle market, having closed transactions with companies in North America, Europe and Asia. By being focused and independent, Fairmount Partners serves its clients without conflicts of interest.
Fairmount Partners is a registered Broker Dealer, member FINRA (www.finra.org) and SIPC (www.sipc.org)
More information about Fairmount Partners can be obtained at www.fairmountpartners.comPrincipals of Fairmount Partners acted as advisors to Eastern in this transaction.
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