Source Atlantic, an industrial wholesale distributor based in Saint John, N.B., is being sold.
Ocean Capital Holdings announced Wednesday it has reached an agreement to sell Source Atlantic to Lawson Products Canada.
“We have a vision of growth for Source Atlantic, and this agreement provides a unique opportunity to accelerate this vision of being a national player in industrial distribution,” John Irving, president of Ocean Capital Holding, said in a statement.
“These two companies are coming together with a steadfast commitment to growth and excellence.”
Lawson Products Canada is a wholly owned subsidiary of Distribution Solutions Group Inc., also known as DSG.
Ocean Capital said DSG expressed interest in acquiring Source Atlantic as a platform company for their Canadian operations for continued growth across the company.
Lawson Canada operates several stores under the banner of Bolt Supply throughout western Canada.
“Combining Source Atlantic’s Eastern Canadian operation with Bolt Supply’s Western presence positions us as a leading MRO player in the Canadian market, further strengthening DSG’s North American presence for our expanded value-added capabilities,” Bryan King, chairman and CEO of DSG, said in the statement.
“We look forward to leveraging the combined operations with the Source Atlantic team and expanding our offerings to their well-established customer base and leveraging their speciality services capabilities which represent approximately one-fourth of their revenues.”
Source Atlantic generated around $250 million in sales during the most recent fiscal year, according to a release from DSG.
Steve Drummond, president of Source Atlantic, said they are excited to join DSG to provide best-in-class service and offerings.
“We are pleased DSG recognized the value of the platform we have built with Source Atlantic and look forward to growing as a combined company across Canada. Our employees, customers, and vendor partners will all benefit from combining Source Atlantic with DSG,” said Drummond.
Describing itself as an “innovative and industry-leading” industrial whole distributor, Source Atlantic employs 550 people across two dozen locations in Atlantic Canada, Ontario, Manitoba, Saskatchewan, and Alberta.
Originally founded in 1867 in Saint John as a hardware merchant, the company has evolved as part of the Irving group of companies, acquiring numerous businesses across Canada over the past 157 years.
The sale is expected to close in the third quarter of 2024, subject to regulatory and customary closing conditions.
Acadia Broadcasting, which owns this radio station, is also part of Ocean Capital Holdings.
