United Stationers acquires CPO Commerce for $30 million
Deerfield-based United Stationers subsidiary, United Stationers Supply Co. has completed, its acquisition of 100 percent of the outstanding shares of e-retailer CPO Commerce, Inc., in an all cash purchase of $30 million, with up to an additional $10 million to be paid in three years based on performance.
Pasadena, California-based CPO Commerce's online business sells brand name power tools and equipment, and the acquisition will expand United's digital resources and capabilities to support resellers as they transition to an increasingly online environment, the company said in a statement. CPO's expertise will strengthen United's ability to deliver such features as improved product content, real-time access to inventory and pricing, and digital marketing and merchandising. CPO also provides an enhanced digital platform to support United's manufacturing partners.
"We are positioning United to be the premier supplier of business essentials with a focus on winning the shift to online selling," said P. Cody Phipps, United Stationers' president and chief executive officer. "We have an expanding portfolio of e-commerce competencies and have invested in skilled leadership to grow our online business.
"We expect CPO's e-commerce platform to provide new capabilities to allow us to drive digital services, engage our resellers through online tools, and enable their continued online success," Phipps added. "This acquisition is the next step in executing our strategy, and I am pleased to welcome CPO's associates as they become a part of our company,"
CPO's fiscal year 2013 sales were $78 million, with a sustained track record of double-digit annual growth.
"We are excited to bring our e-commerce expertise to United Stationers and look forward to leveraging United's strong operational capabilities to better serve our customers and brand partners. We are equally excited to be joining a company with an outstanding, purpose-driven culture," said Rob Tolleson, CPO's founder and president.