Why This Matters to Distributors: The investment gives BDI additional capital to expand its industrial distribution business and pursue acquisitions while keeping its existing leadership team invested in the company.
Bearing Distributors Inc. has received an investment from private equity firm Kelso & Company that will provide the industrial distributor with additional capital for expansion and acquisitions.
Financial terms of the transaction and the size of Kelso’s ownership stake were not disclosed.
Cleveland-based BDI distributes bearings, power transmission and fluid power products and provides related industrial services. The company operates in more than 205 locations in 11 countries and serves customers across a range of industrial markets.
BDI said the investment will support growth across product categories, end markets and service offerings. The company also plans to use Kelso’s capital and operational resources to support both internal expansion and acquisitions.
“Partnering with Kelso provides the capital, strategic support, and shared vision to take BDI to the next level,” BDI CEO Carl James said.
BDI’s existing leadership team will remain in place and retain a significant ownership stake in the company, according to the announcement. BDI did not disclose how much of the company management will own following the transaction.
Kelso, a New York-based middle-market private equity firm, has invested about $20 billion in more than 140 transactions since 1980. The firm has experience investing in distribution businesses.
“BDI has built a differentiated platform underpinned by deep technical expertise and longstanding customer and supplier relationships,” Kelso Investment partner Alec Hufnagel said.
Hufnagel said Kelso will support BDI as it pursues its growth strategy while maintaining the company’s existing culture and focus on customer service and productivity.
The deal gives BDI additional financial backing at a time when acquisitions continue to reshape industrial distribution. BDI did not identify potential acquisition targets or specify which product categories, services or geographic markets it plans to prioritize.
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