Network Services Co. and Strategic Market Alliance, both providers of supply chain solutions in the janitorial, sanitation, foodservice and packaging industries, have agreed to combine, creating a global member-owned distribution organization.

The $22 billion company expects to have more than 130 distributor members and over 900 locations in 50 countries.

"Local distribution is critical to our success," Network Services President and CEO Alan Tomblin said in a statement. "This enables us to do more for our national and multi-national corporate account customers who require a centralized approach to their business but also seek customized local service."

SMA President and CEO Richard McGann added: "In a short period of time, with the support of 57 prominent distributor organizations in the US and Canada, SMA created a legacy built on enhancing the well-being, prosperity and growth of its trading partners and associates. This, in the end, aligns well with the goals and aspirations of Network, the preeminent category leader, and makes the merger of two well-established like-minded organizations exciting and full of even greater opportunity to serve."

The newly combined organization will operate under the name, Network Services Co. with Tomblin serving as CEO. Network and SMA have agreed in principle to close by the end of the year.