United Stationers Signs Agreement To Acquire O.K.I. Supply Co.

        United Stationers Signs Agreement To Acquire O.K.I. Supply Co.

PR Newswire

DEERFIELD, Ill., Oct. 22, 2012

DEERFIELD, Ill., Oct. 22, 2012 /PRNewswire/ -- United Stationers Inc. (NASDAQ:
USTR) announced today that its wholly-owned subsidiary, United Stationers
Supply Co., signed a stock purchase agreement to acquire 100% of the
outstanding shares of O.K.I. Supply Co. (O.K.I.) for an all-cash purchase
price of $90 million.

Based in Cincinnati Ohio, O.K.I. is the largest independently-owned welding,
safety and industrial products wholesaler in the country, serving the gases
and welding industry for 75 years. O.K.I. has annual revenues of
approximately $150 million, offering 80,000 premium manufacturer-branded and
private label products.O.K.I. sells to more than 9,000 independent
distributors across multiple channels through nine distribution centers
strategically located across the U.S. It also has operations in Canada and
Dubai, UAE that are positioned for strong growth.

The transaction is expected to be completed in November 2012, subject to
customary closing conditions. United Stationers plans to fund this
acquisition through a combination of cash on hand and cash available under its
revolving credit facility. The transaction is expected to be approximately
$0.07 accretive to earnings in 2013, net of one-time integration costs.

Profitable Growth Opportunity
The O.K.I. acquisition represents a very important step forward for our
wholesale industrial products platform," said Cody Phipps, president and chief
executive officer of United Stationers. "It is a highly-respected company
with a strong and growing position in the welding and safety industries.
O.K.I.'s deep product knowledge, commitment to customer service, and dedicated
employees complement the same capabilities in our ORS Nasco business, and will
benefit from the logistics capabilities and financial strength of United,"
continued Phipps. "This transaction accelerates our progress toward building
the premium pure-wholesale distribution network in the U.S."

"We are pleased to have the opportunity to join United Stationers and ORS
Nasco, and we see it as a perfect fit for our customers, suppliers and
company," said Bill Rice, president and chief executive officer of O.K.I.
"The scale and capabilities that this partnership represents uniquely
positions us to bring additional value to our customers enabling them to
succeed in an evolving market."

United Stationers will discuss this transaction during its third quarter 2012
earnings call on Tuesday, October 23, 2012, at 10:00 a.m. CDT. To listen via
the Internet, please visit ir.unitedstationers.comand click on the webcast
link. To listen by phone, callers in the U.S. and Canada should dial (888)
771-4371, and international callers should dial (847) 585-4405. The
conference identification number is 33239541.

Forward-Looking Statements
This news release contains forward-looking statements, including references to
goals, plans, strategies, objectives, projected costs or savings, anticipated
future performance, results or events and other statements that are not
strictly historical in nature. These statements are based on management's
current expectations, forecasts and assumptions. This means they involve a
number of risks and uncertainties that could cause actual results to differ
materially from those expressed or implied here. These risks and
uncertainties include, but are not limited to the following: prevailing
economic conditions and changes affecting the business products industry and
the general economy; United's ability to effectively manage its operations and
to implement growth, cost-reduction and margin-enhancement initiatives;
United's reliance on key customers, and the risks inherent in continuing or
increased customer concentration; United's reliance on key suppliers and the
supplier allowances and promotional incentives they offer; United's reliance
on independent resellers for a significant percentage of its net sales and,
therefore, the importance of the continued independence, viability and success
of these resellers; continuing or increasing competitive activity and pricing
pressures within existing or expanded product categories, including
competition from product manufacturers who sell directly to United's
customers; the impact of a loss of, or substantial decrease in, the
availability of products or service from key vendors at competitive prices;
United's ability to maintain its existing information technology systems and
the systems and eCommerce services that it provides to customers, and to
successfully procure, develop and implement new systems and services without
business disruption or other unanticipated difficulties or costs; the
creditworthiness of United's customers; United's ability to manage inventory
in order to maximize sales and supplier allowances while minimizing excess and
obsolete inventory; United's success in effectively identifying, consummating
and integrating acquisitions; the risks and expense associated with United's
obligations to maintain the security of private information provided by
United's customers; the costs and risks related to compliance with laws,
regulations and industry standards affecting United's business; the
availability of financing sources to meet United's business needs; United's
reliance on key management personnel, both in day-to-day operations and in
execution of new business initiatives; and the effects of hurricanes, acts of
terrorism and other natural or man-made disruptions.

Shareholders, potential investors and other readers are urged to consider
these risks and uncertainties in evaluating forward-looking statements and are
cautioned not to place undue reliance on the forward-looking statements. For
additional information about risks and uncertainties that could materially
affect United's results, please see the company's Securities and Exchange
Commission filings. The forward-looking information in this news release is
made as of this date only, and the company does not undertake to update any
forward-looking statement. Investors are advised to consult any further
disclosure by United regarding the matters discussed inthis releasein its
filings with the Securities and Exchange Commission and in other written
statements it makes from time to time. It is not possible to anticipate or
foresee all risks and uncertainties, and investors should not consider any
list of risks and uncertainties to be exhaustive or complete.

Company Overview
United Stationers Inc. is a leading wholesale distributor of business
products, with 2011 net sales of $5.0 billion. The company stocks a broad and
deep line of approximately 100,000 items on a national basis, including
technology products, traditional office products, janitorial and breakroom
supplies, office furniture, and industrial supplies. A network currently
comprised of 60 distribution centers allows it to deliver these products to
over 25,000 reseller customers. This network, combined with United's depth
and breadth of inventory, enables the company to ship most products overnight
to more than 90% of the U.S. and major cities in Mexico. For more information,
visit www.unitedstationers.com.

United Stationers' common stock trades on the NASDAQ Global Select Market
under the symbol USTR.

For Further Information Contact:

Cody Phipps
President and Chief Executive Officer
or
Fareed Khan
Sr. Vice President and Chief Financial Officer
United Stationers Inc.
(847) 627-7000

SOURCE United Stationers Inc.

Website: http://www.unitedstationers.com
 
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