Case Study:

HUB City Industrial Supply, Inc.

Company: HUB City Industrial Supply, Inc.
Buyer: Applied Industrial Technologies, Inc. (NYSE: AIT)
Transaction Type: Sale Transaction

Company Profile

  • One of the nation's leading distributors of highly-customized industrial products, offering a diverse product portfolio of more than 37,000 SKUs, including branded and non-branded saw blades, safety products, abrasives and more
  • Serves a number of niche markets, including the pallet and auto dismantling markets
  • Sells to over 5,000 customers nationwide and has additional locations in Las Vegas, Nevada and Indianapolis, Indiana

Situation Overview

  • The shareholders were seeking a majority sale at the highest possible price
  • With an understanding of the buyer universe, we recommended approaching one buyer, Applied Industrial Technologies, with a "first look" opportunity

Marketing Process Summary

  • Approached 1 buyer (Applied Industrial Technologies) with the threat of going broad if buyer did not pay a robust multiple off of a forward EBITDA projection and move quickly towards closing
  • The 1 CIM sent to Applied Industrial Technologies was the only CIM sent out into the market


  • Hub Industrial Supply was sold to Applied Industrial Technologies
  • Farlie Turner negotiated highly attractive terms, including a minimum level of working capital to be delivered at closing, limited indemnifications and appealing employee agreements
  • Farlie Turner was successful in maximizing valuation and successfully closing the transaction on attractive terms without ever approaching other parties
Go to Top