|Uni-Select announced yesterday that, through its subsidiary Uni-Select USA, Inc, it has completed its purchase of all of the stock of Middle Atlantic Warehouse Distributor, Inc. (MAWDI). MAWDI is a warehouse distributor that operates 31 distribution centers and 145 corporate stores in 18 states serving more than 1,500 independent automotive jobbers, in addition to its corporate stores, on the East Coast, Midwest and Southwest regions of the U.S.
With the conclusion of this transaction, Uni-Select has significantly increased its market reach in the U.S. where it will generate revenues of approximately $470 million.
As partial consideration for the purchase of all of the stock of MAWDI, Clay Buzzard, MAWDI's majority shareholder, elected to subscribe to one million shares of Uni-Select from the cash proceeds of the sale of his shares and as a result, holds 5 percent of the outstanding shares of Uni-Select Inc. The Buzzard family members holding minority interests in MAWDI elected to receive 13.92 percent of the estimated purchase price in shares of Uni-Select USA representing 1,259,588 shares or 10 percent of the outstanding shares of Uni-Select USA.
Jim Buzzard has been appointed executive vice president of Uni-Select Inc. responsible for Automotive Group USA and, subject to shareholders' approval, Clay Buzzard will be invited to join the board of directors of Uni-Select Inc.
Uni-Select Inc. is Canada's second largest distributor of automotive and heavy-duty replacement parts, equipment, tools and accessories. Through Uni-Select USA, the company also provides service to customers in the U.S. Its network of mostly independent jobbers includes more than 800 stores in Canada and, as a result of the acquisition, almost 2,000 in the U.S. Uni-Select is headquartered in Montreal and generated revenues of $722 million (CDN) in 2003. Uni-Select shares are traded on the Toronto Stock Exchange (TSX) as UNS.