Blue Sea Capital LLC, a private equity firm based in the United States, has acquired ProSource Supply, a leading provider of plumbing supplies. The acquisition closed on September 28, 2022.
| Deal-at-a-Glance | |
| Acquirer: | Blue Sea Capital LLC (US) |
| Target: | ProSource Supply (US) |
| Type of Transaction: | Acquisition |
| Deal Value: | Undisclosed |
| Close Date: | September 28, 2022 |
| Buy-Side Advisors: | Raymond James, Kirkland & Ellis |
| Sell-Side Advisors: | TM Capital, Ice Miller LLP |
| Legal (buy-side): | Kirkland & Ellis |
| Legal (sell-side): | Ice Miller LLP |
The acquisition aims to support ProSource's next phase of growth through organic expansion and potential acquisitions. Blue Sea Capital, known for its focus on industrial businesses, will continue to foster the development of ProSource’s existing operations while exploring strategic opportunities.
Deal Mechanics
No specific financial details were disclosed regarding the deal value or key terms. Raymond James served as the exclusive financial advisor to Blue Sea Capital with legal support from Kirkland & Ellis, a leading law firm in transactional matters. On the sell-side, TM Capital acted as the financial advisor for ProSource Supply, while Ice Miller LLP provided legal counsel.
Strategic Rationale
The rationale behind this acquisition is to bolster ProSource's position within the plumbing supply sector and to enable further growth initiatives. Blue Sea Capital aims to leverage its expertise in industrial businesses to enhance operational efficiencies and support ProSource’s expansion plans both organically and through potential add-on acquisitions.
Financial Context
The acquisition comes at a time when the U.S. plumbing supply market is experiencing steady growth driven by increased home renovation activities and infrastructure spending. ProSource Supply, with its robust distribution network and strong customer base in multiple states across the U.S., aligns well with Blue Sea Capital's investment strategy.