Why This Matters to Distributors: Adding PEXUniverse gives Hills Distribution a national e-commerce business alongside its 40-location Northeast branch network, extending the plumbing and HVAC distributor beyond its traditional regional footprint.
Hills Distribution has added ecommerce distributor PEXUniverse to its portfolio, giving the Northeast plumbing and HVAC distribution group a national online sales channel.
Hills and private equity firm Grove Mountain Partners, which backs the distribution platform, announced the transaction Sept. 21. Financial terms and the ownership structure were not disclosed. The companies described the transaction as a partnership.
Brooklyn, New York-based PEXUniverse is a pure-play ecommerce distributor of plumbing, heating and HVAC parts and supplies. The company carries about 8,000 stock-keeping units (SKUs) and serves customers nationwide from its distribution operation.
The transaction represents a shift in Hills’ expansion strategy. The company has built its platform primarily around established regional distributors and their branch networks. PEXUniverse adds a digital distribution operation capable of reaching customers across the U.S. without a corresponding expansion of physical branches.
“Hills Distribution deepen(s) our presence in the ecommerce channel, which continues to gain momentum across our industry,” Hills CEO Ron LaBusch said.
PEXUniverse has operated for two decades. Hills said the company has generated double-digit organic growth in recent years, although it did not disclose revenue or other financial results.
PEXUniverse’s existing management team will remain with the business, with Mariya Pylypyuk serving as general manager.
PEXUniverse becomes the fifth business in the Hills Distribution portfolio, joining Plimpton & Hills, Coastal Supply Group, RJ Murray, and Bender Plumbing Supply.
Together, the Hills businesses operate at 40 locations across the Northeast. PEXUniverse extends the company’s reach beyond that branch network through its nationwide e-commerce business.
“PEXUniverse brings a differentiated capability to Hills and expands our participation in one of the fastest-growing channels within plumbing and HVAC distribution,” Hills chairman Jon Perry said. “The business has developed a broad product offering and an efficient digital model that complements our existing companies.”
Hills Distribution operates its businesses as separate brands with their existing leadership and operating models while providing resources through the broader platform.
Grove Mountain Partners invests in wholesale distribution and blue-collar services companies with annual revenue ranging from $25 million to $300 million.
The PEXUniverse transaction adds a different component to Hills’ acquisition strategy: an established digital distributor rather than another regional branch operation. That gives Hills a way to sell plumbing and HVAC products nationally while maintaining the regional branch networks of its other four businesses.
The companies did not disclose PEXUniverse’s annual revenue, purchase price, or other financial terms.
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