Online liquidation merchandise wholesaler Liquidity Services will acquire California-based liquidation wholesaler SRT Inc. for $8.5 million. The company will add a new leased distribution center in southern California.
Kurt Peters , Executive Editor
Liquidity Services Inc., provider of services and online marketplaces connecting merchandise liquidators with wholesale buyers, has agreed to acquire the wholesale business of STR Inc. for $8.5 million. California-based STR is an online wholesale source of merchandise coming out of reverse logistics, including retail customer returns, overstocks, shelf-pulls and out of season goods.
The acquisition brings to Liquidity Services STR’s longstanding relationships with traditional discount store chain buyers and a base of large commercial sellers including a number of Fortune 500 retailers. The deal also will expand Liquidity Services’ reach on the West Coast with the addition of a 117,000-square-foot leased facility in southern California that will provide staging, warehouse and distribution capacity for domestic and international buyers and sellers, according to Liquidity Services.
“We believe the acquisition of STR is a natural complement to our organization and is a win-win for LSI’s and STR’s established customer base of buyers and sellers,” says Liquidity Services CEO Bill Angrick. “These customers will be able to benefit from LSI’s innovative solution as well as the STR team’s over 30 years of product domain expertise in major categories such as electronics, apparel, entertainment and general merchandise.”
The acquisition is expected to close in October.
Liquidity Services operates three online auction liquidation sites-Liquidation.com, Govliquidation.com and Liquibiz.com-and a wholesale portal, GoWholesale.com. At the end of June, the company had 489,000 registered buyers, up 38% from a year ago. The company went public in February of this year, its initial public offering raising $77 million.