Why This Matters to Distributors: Stellar Industrial Supply is bringing in an outside investment partner to provide additional capital and operational resources for the industrial distributor. The companies did not disclose the size of SNH Capital Partners’ ownership interest, the purchase price or whether the investment represents a controlling stake.
Stellar Industrial Supply has entered into a definitive agreement under which SNH Capital Partners will acquire an ownership interest in the Tacoma, Washington-based industrial distributor.
The companies announced the agreement Sept. 17. Financial terms were not disclosed, and the announcement did not specify the size of SNH’s investment.
Stellar said the partnership will provide additional long-term capital and operational resources while preserving its existing leadership team and strategic direction. The distributor will continue operating under the Stellar Industrial Supply name with its current management team.
“We selected SNH because of their long-term investment philosophy, collaborative approach, and shared vision for Stellar,” Stellar president and CEO John Wiborg said. “This partnership strengthens our ability to invest in our people, customers, and future growth.”
The announcement did not identify specific acquisition, geographic expansion, technology, or distribution capacity investments that Stellar plans to make with the additional capital.
Stellar distributes maintenance, repair and operations products and provides metalworking, safety, and inventory management services to industrial customers.
Stellar operates through five divisions and distributes products used in safety, metalworking, marine supply, aerospace and other manufacturing and processing applications. Stellar also operates a Documented Cost Savings program aimed at identifying and measuring savings for customers.
SNH is a privately held U.S. investment firm focused on middle-market companies. The Austin, Texas-based firm says its investment strategy emphasizes long-term ownership and continued involvement by founders and existing management teams.
“We are excited to partner with Stellar,” said Aditya Dabas, managing director on SNH Capital’s investment team. “The company has an exceptional reputation and leadership team, and we look forward to supporting its long-term success.”
The firm says it invests in companies with up to $75 million in annual earnings before interest, taxes, depreciation and amortization and favors businesses with opportunities for organic and acquisition-driven growth.
The immediate change announced by the companies is at the ownership level. Stellar said its management team will remain in place, and the company will continue operating under its existing name.
For Stellar, the agreement brings in additional capital and operational resources without an announced change in management or company identity.
Do not miss any content from Distribution Strategy Group. Join our list.
Share this article:
