Liquidity Services Inc. (LSI), an online auction marketplace for wholesale, surplus and salvage assets, has agreed to acquire the wholesale business of STR Inc. for $8.5 million. STR is a California-based remarketer of reverse supply chain merchandise, including retail customer returns, overstocks, shelf pulls, and seasonal merchandise, to wholesale buyers.
LSI said it benefits from the acquisition by adding STR's long-standing relationships with traditional discount store chain buyers, as well as a complementary base of large commercial sellers, including Fortune 500 retailers. In addition, the acquisition will expand LSI's presence on the West Coast through the addition of an approximately 117,000 square foot leased distribution center in southern California
LSI expects the STR deal to add approximately $18 million of revenues and approximately $480,000 in net income to its fiscal year 2007 results. The acquisition is expected to close in October 2006 and is subject to customary closing conditions and post-closing price adjustments related to working capital items.
http://www.liquidityservicesinc.com
