Interline Brands Inc. (IBI) agreed to buy a California distributor of janitorial and sanitation supplies for $60.1 million in cash.
The deal, which is expected to be neutral to Interline earnings this year but will boost them after that, fits with the company's strategy to acquire well-run businesses with leadership positions in attractive facilities-maintenance markets, according to Chairman and Chief Executive Michael J. Grebe. Interline currently supplies products to plumbing, electrical and janitorial sectors.
He also said the purchase will open opportunities to increase sales and improve profitability.
Interline agreed to take over CleanSource Inc. for $54.6 million in cash and $5.5 million in cash earn-out, which will be paid out over the next two years as Cleansource reaches certain capital and other adjustments.