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Grainger (NYSE: GWW), Chicago, on Monday announced it has entered into a definitive agreement to sell its distribution business in China, Grainger China LLC, to a purchaser owned by the Grainger China management team and Sinovation Ventures, a China-based venture capital firm. Financial terms of the deal weren’t disclosed.
The company said this divestiture will better enable Grainger to focus on its key businesses and geographies. To support this portfolio, the company will maintain its Global Sourcing operations based in China. Grainger's Global Sourcing provides the company with private label products in categories that include safety, cleaning, electrical, motors and tools.
"I applaud the Grainger China team members for doing a remarkable job to drive profitable growth over the years," said DG Macpherson, chairman and CEO of Grainger. "The management team is strong and well positioned for even greater success moving forward. Grainger continues to have a relentless focus on providing customer value through our high-touch and endless assortment offerings, and doing so in the geographies that make the most sense for us."
This transaction is not subject to any financing condition but is subject to the standard regulatory approvals. The deal is expected to close later this year.