3/19/2013 10:12:00 AM
HEADLINES
MSC Industrial To Acquire Barnes Distribution
MSC Industrial Direct Co. agreed to acquire the North American distribution business (BDNA) of the Barnes Group for $550 million.
“With this acquisition, MSC adds a highly complementary provider of fasteners and other high margin consumable products and services (often referred to as Class C items) with an industry-leading field sales force and vendor managed inventory (“VMI”) solution,” MSC stated in a press release.
Headquartered in Cleveland, OH, BDNA distributes fasteners and other high margin, low cost consumables with a broad distribution footprint throughout the U.S. and Canada, and 2012 sales of approximately $300 million.
BDNA has a strong presence with customers across manufacturing, government, transportation and natural resources end-markets, servicing roughly 31,000 customers with nearly 1,400 associates, including over 800 field sales associates, and offering more than 55,000 SKUs of products.
The deal, which is expected to close in the third quarter of 2013, nearly doubles MSC’s sales workforce. MSC will sell its products through BDNA’s sales force, while offering BDNA’s products and inventory management services to MSC’s customers.
“BDNA is a high quality business with a first rate team, a compelling product offering, strong customer value proposition and a broad geographic foot print including Canada,” noted MSC CEO Erik Gershwind. “This acquisition furthers our strategy to build adjacent product expertise and deepens our connection to customers with in-plant solutions, thereby improving customer retention.”
MSC Industrial Direct reported 5.8% sales growth to $577.5 million in first quarter of fiscal 2013, ended December 1, 2012. Adjusted net income rose 7% to $64 million.
During the previous quarter MSC announced plans to build its fifth US-based distribution center — this one in Columbus, OH. ©2013 GlobalFastenerNews.com
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