Merfish Pipe & Supply (Merfish), a master distributor of carbon steel standard pipe, fittings and flanges, and a portfolio company of One Equity Partners (OEP) is to merge with United Pipe & Supply under the ownership of Merfish Pipe Holdings (MPH), an entity that is majority-owned by OEP.
Financial terms of the private transaction have not been disclosed.
Headquartered in Ipswich, Massachusetts, United is also a master distributor of carbon steel standard pipe, which they complement with the master distribution of plastic pipe, copper tube and electrical conduit, serving the construction, electrical supply, fire protection, HVAC, mechanical and plumbing industries. Founded in 1980, United is known for making small quantity deliveries on a “just-in-time” basis from 12 distribution centres across the US and its large fleet of trucks.
“United’s proven route-based delivery model is attractive because it allows our wholesale customers to reduce their storage of excess inventory and commodity exposure risk, and their distribution centres will expand our geographic coverage around the country,” said Gerald Merfish, CEO of Merfish. “This transaction will allow us to serve approximately 30 percent of the total master distribution market, helping to increase our reach into attractive commercial, industrial and residential construction end markets.”
“This transaction is an excellent example of how OEP focuses on growing portfolio companies through strategic combinations that compound growth, build long term value and create new growth opportunities,” says Jamie Koven, Senior Managing Director, OEP. “Merfish and United are exceptionally strong, well established brands that are highly complementary with excellent product portfolios.”
The combined businesses will serve the plumbing, HVAC, electrical, mechanical, PVF, fire protection, fence, steel service centres, waterworks, utility and construction markets from 17 distribution centres, with dedicated delivery routes to job sites, supply houses or other locations.
“We’re thrilled to join with Merfish and utilise our modern fleet of trucks, distribution network and logistical support to continue providing all of our customers with uninterrupted, best in class service as always,” says Greg Leidner, President and CEO of United. “Together, we will continue to develop ways to enhance the supply chain for our suppliers and customers, while providing employees with meaningful and rewarding opportunities to develop professionally.”
Leidner will assume the role of CEO of MPH, and Merfish has been named Chairman of MPH.
OEP has proven experience investing and building market-leading industrials businesses like Merfish, including Anvil International, one of the largest and most complete manufacturers of pipe fittings, pipe hangers and piping support systems; Alltub Group, a leader in aluminium and laminate specialty packaging manufacturing and Strike, a provider of integrity testing, maintenance, engineering, procurement, and construction services for pipeline operators.
