7/30/2015 11:20:00 AM
NEWS BRIEFS
Grainger To Acquire Large UK Distributor
Grainger agreed to acquire Cromwell Group, the largest independent MRO distributor in the UK, for £310 million (US$482 million) in cash. The deal is expected to close by early September.
Founded in 1970, Leicester, England-based Cromwell serves more than 35,000 industrial and manufacturing customers with more than 80,000 industrial products, including fasteners, and employs about 2,150 workers.
Cromwell sales for the fiscal year ending August 31, 2015, are forecasted to be £283 million (US$440 million), with EBITDA margins of approximately 10%.
Grainger called the deal “a compelling opportunity in the U.K. to grow (our) MRO online model, similar to what the Company has already accomplished in Japan with MonotaRO and in the United States with Zoro.”
“The large, economically mature markets of Europe and Japan present the greatest opportunity for growth outside of North America and our online businesses across these regions are rapidly growing,” said Grainger CEO Jim Ryan.
“Over the next five years we expect sales growth from low single digits to approaching double digits, and EBITDA margins to improve from 10% to 15%.”
Grainger plans to operate Cromwell as a standalone business unit led by current Cromwell managing director Michael Kerins.
From the Fastener History section of GlobalFastenerNews.com:
2011 FIN – Grainger Completes Fabory Acquisition
Fabory Masters in Fasteners, formerly known as Borstlap, was founded in 1947 by J.M. Borstlap and his sons, Karek and Joop.
2006 FIN – Grainger Offering 9 Times as Many Fasteners
Durante: Grainger seeks to provide “everything customers need to keep their facilities running every day.”
2005 FIN – Grainger Reportedly Adding 10,000 Fastener Lines; To Compete Directly with Fastenal
The company was founded by Bill Grainger in 1927 as a wholesale electric motor sales and distribution business in Chicago.
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Related Links:
• Grainger
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