Global Fastener News

1996 FIN – Acklands of Canada Acquiring Reynolds

December 21
00:00 2012

1996 FIN – Acklands of Canada Acquiring Reynolds

January 2, 1996 FIN – The Canadian firm of Acklands Limited announced that it expects to acquire Reynolds Fasteners, Inc., on Feb. 1, 1996, for approximately $30 million and plans to expand in the fastener business.
The transaction is subject to a number of conditions, including execution of a definitive agreement with Reynolds’ parent company, Allegheny Ludlum Corporation.
Reynolds, an Edison, New Jersey-based importer and master distributor of industrial metal fasteners to a manufacturing, construction and industrial base in the U.S., has projected sales in excess of $50 million and projected EBIT of $5 million for 1995.
Reynolds is headed by Don Haggerty.
Acklands bills itself as Canada’s largest distributor of industrial and safety-related products and the second-largest automotive aftermarket parts distributor in Canada. Through its subsidiary, Rose Auto Stores, the company has $80 million in sales through 90 stores in South Florida.
Acklands, headed by chairman/CEO Rai Shai, operates its Pro Fastener division in Canada and is headquartered in North York, Ontario.
Pro Fastener and Acklands carry similar lines of fasteners.
Fraser Berrill, Acklands vice president for corporate development, told FIN the acquisition of Reynolds is an opportunity for Acklands to expand in the fastener business.
Berrill said the acquisition “fits very well” for Acklands. “We see fasteners as a fragmented business with good margins and good opportunity for growth. We have expertise and distribution. We are a growth company.”
Though Acklands and Reynolds carry some of the same lines of fasteners, “we go to market differently,” Berrill noted. Reynolds is a master distributor while Acklands sells to end users.
Both buy fasteners in Asia, and the combined purchasing power should be helpful to Acklands, Berrill added.
Fasteners represent only $18 million of the $800 million of Ackland’s Canadian sales.
“Reynolds will complement the existing fastener business that Acklands operates in Canada, through its Pro Fastener division, as the lines that each carries are similar,” Acklands’ acquisition announcement stated. “Sourcing synergies are possible as well as the opportunity of supplying smaller lots by Pro Fastener through the Reynolds network. Acklands expects to introduce the marketing expertise developed by Reynolds to the Canadian market by offering similar master distribution programs.”
Berrill told FIN Reynolds will continue to operate as “by and large a stand-alone operation” as it has as a subsidiary of Allegheny Ludlum.
“We are very impressed by their management,” Berrill said of Reynolds.
Reynolds was acquired by Allegheny Ludlum in 1993 from Athlone, which had held it since 1967.
Reynolds has branches in Atlanta, Georgia; Cleveland, Ohio; Dallas and Houston, Texas; Detroit, Michigan; Los Angeles, California; Tampa, Florida; and Edison. ©1996/2012 Fastener Industry News
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