Global Fastener News

1981 FIN – Romard Acquires Donahue Steel

February 03
00:00 2011

 

August 1, 1981 FIN – Donahue Steel Products Co. has been bought by Romard/Northwest, Inc., a subsidiary of American Cold Heading Corp. of Franklin Park, IL.
Chicago-based Donahue was the big one in the group of U.S. fastener importers and distributors that the Canadian company, Trans-Union, has been divesting itself of piecemeal. Trans-Union was recently purchased by Chicago’ s Pritzer family, owners of among other things, the Hyatt Hotel chain, and U.S. fastener distribution business held little appeal for them.

Donahue is the 4th or 5th largest importer in the Chicago area, says Edward McGorry, vice president and general manager of American Cold Heading. “It is our intention,” he tells FIN, “to keep Donahue running as a separate entity. We will have some access to additional inventory. It will give us an opportunity to continue doing what we had been doing in the past on a little broader scale.”

American Cold Heading is a manufacturer of small screws. Its range is from number 2 diameter through 3/8″ by 6″ long. It manufactures both standards and specials and semi-specials for distributors. Purchase of Donahue, says McGorry, will allow it to expand its offerings to all types of washers, grade 5 carriage bolts and nylon insert lock nuts.

This was not American Cold Heading’s first venture into importing: It had bought Romard/Northwest in December of 1980, and Donahue will be part of that.

Many in the Chicago area fastener distribution business had feared that Donahue would be bought by one of the Japanese trading companies, which have already moved in Joseph Fuller and Global, to name two.

Manufacturers such as American Cold Heading have also moved into the import business in “if-you-can’t-beat-them-join-them” effort.

“This most recent expansion of our product line further strengthens our position with distributors,” McGorry says, “because it bolsters the inventory of standard products available from American and its operating units. It also enables us to offer direct mill shipment of certain products.” ©1981/2011 Fastener Industry News

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