9/24/2012 3:09:00 PM
HEADLINES
Amid Restructuring, Lawson Products Replaces CEO
Michael G. DeCata
Lawson Products Inc. announced that Thomas Neri has retired as president and CEO. Neri has been with the company since 2003, and had been CEO since 2007.
Michael G. DeCata will replace Neri as president and CEO of Lawson Products.
Board chairman Ronald Port touted DeCata’s experience as a senior executive with a demonstrated record of success.
“His experience in MRO distribution is the perfect match for Lawson,” Port stated.
Since 2009, DeCata has worked in private equity, conducting acquisition analysis and due diligence, and has served since June 2008 on the Board of Directors of Crescent Electric Supply. From 2006 to 2009, he was President of the Chefs’ Warehouse, a $300 million specialty food distributor.
Prior to his position at the Chefs’ Warehouse, DeCata led the Contractor Supplies Division of United Rentals Inc., a $4 billion construction equipment rental company. DeCata also led Fleet Operations at United Rentals.
From 1997 until 2002 he led the eastern region of W.W. Grainer, Inc. which had annual sales of more than $1.4 billion, 152 branch locations and 2,000 employees.
DeCata began his career at General Electric Co. and worked in a variety of cross-functional and cross-business positions, including industrial sales, from 1979 until 1997.
The change in leadership comes amid restructuring efforts by the company.
In late June Lawson Products announced plans to eliminate 100 jobs — 11% of its workforce — as part of restructuring efforts to stay competitive in what it called a “fragmented” MRO industry.
The cuts include elimination of several senior executive positions, including the open COO position, but will not reduce Lawson’s sales force.
Other cost-cutting measures include rationalizing inventory and reducing travel, marketing and outbound freight expenses.
Collectively the reductions are expected to save Lawson Products about $20 million annually.
Lawson Products saw sales fall 11.6% to $74.3 million in the second quarter of 2012, during which time the company reported an operating loss of $41.4 million and a net loss of $61.1 million.
Six-month revenue declined 9.8% to $150.3 million, with a net loss of $62.9 million for the period. ©2012 GlobalFastenerNews.com
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