ACQUISITION: Wesco Adds Carlton-Bates to Fastec Acquisition

Jason Sandefur

Just weeks after acquiring Fastec Industrial Corp., Wesco International Inc. agreed to purchase Carlton-Bates Co.
“Wesco is on a bit of an acquisition binge,” observed Richard Hagan of New York-based Pinnacle Capital Corp. “They are both very significant acquisitions. Besides the large size, both are steps in a different direction for Wesco.”
Little Rock, AR-based Carlton-Bates was founded in 1957 and has annualized 2005 sales of approximately $300 million. The company distributes electronic components.
Carlton-Bates has 32 branch locations, four regional warehouses and an estimated 20,000 customers throughout the U.S. and Mexico.
Wesco CEO Roy Haley said the acquisition “provides a unique opportunity to more deeply penetrate the OEM market segment with specialty products, applications and value-added services. The planned acquisition of Carlton-Bates, along with the recently closed acquisition of Fastec, provides Wesco the opportunity to strategically supplement our proven organic growth model.”
Carlton-Bates CEO William Carlton described the acquisition as providing “a significant strategic platform to expand our base of operations” to Wesco customers.
Wesco confirmed the completion of its previously announced acquisition of Fastec Industrial Corp. Fastec, with annual sales of approximately $55 million, is a nationwide importer and distributor of industrial fasteners, cabinet hardware, and locking and latching products.
Wesco is a publicly traded Fortune 500 holding company headquartered in Pittsburgh. Its primary operating entity, Wesco Distribution Inc., distributes electrical construction products and electrical and MRO supplies. Wesco had sales of $3.7 billion last year, employs approximately 5,350 people, maintains relationships with 24,000 suppliers and serves more than 100,000 customers worldwide. Wesco operates five distribution centers and approximately 350 branches in North America and selected international markets. Nearly 90% of Wesco”s sales are generated from U.S. operations.
Wesco sales rose 14% to $1.06 billion during the second quarter of 2005, while net income soared 44% to $27.4 million on higher sales and lower costs.
For the first six months of 2005 Wesco sales gained 15% to $2.05 billion, and net income climbed 35% to $38.8 million. Web: wescodist.com \ �2005 FastenerNews.com