Grainger to Acquire Fabory
8/15/2011 9:50:00 AM
Grainger to Acquire Fabory
W.W. Grainger Inc. announced it will acquire Netherlands-based fastener distributor Fabory Group to expand its fastener business.
Fabory sells 80,000 products to 120,000 customers from 110 locations in 14 countries and had 2010 revenue of about $300 million.
“Fabory brings expertise as a fastener specialist to amplify Grainger’s product offering, while Grainger’s scale and supplier network will help accelerate further growth of Fabory’s business,” Grainger CEO Jim Ryan said.
Fabory to continue to operate as a separate business, keeping its name and brand. Fabory Group CEO Oswald van den Belt will continue to run the company, reporting to Court Carruthers, senior vice president and president of Grainger International.
Europe-based Fastener+Fixing magazine reported Fabory Masters in Fasteners, formerly known as Borstlap, was founded in 1947 by J.M. Borstlap and his sons, Karek and Joop. In 2004 ABN Amro Capital acquired the group from the Borstlap family.
In 2007 AAC sold it to HgCapital for €345 million (US$498m).
Fabory 2009 sales were €220 million (US$317m). U.S. media reported 2010 sales at €210 million (US$300m)
Fabory employs 1,600 people and is headquartered in Tilburg, the Netherlands.
In Europe the Group has a chain of Fabory Centers in addition to its central warehouse in Tilburg and a warehouse in Czech Republic servicing eastern European branches.
Fabory operations in the U.S., Canada and China. Web: Fabory.com
Grainger said the companies must complete required consultations with Works Councils representing Fabory employees in the Netherlands, Belgium and France before they can enter a definitive agreement.
The acquisition is expected to close in the third quarter.
Grainger distributes industrial maintenance and safety supplying 1.8 million customers in the U.S. Canada, Mexico and China through more than 600 branches and 18 distribution centers. Grainger is headquartered at 100 Grainger Parkway, Lake Forest, IL 60045-5201. Tel: 847 535-1000 Web: grainger.com
Last month Grainger reported that its second-quarter profit rose 32% because of expanded product offerings and growing international sales. The company also raised its forecast for the year.
In 2010 Grainger sales increased 15.4% to $7.18 billion. Daily sales were up 15.9%. For 2010, approximately 10 percentage points of the sales growth came from an increase in volume, 4 percentage points came from business acquisitions, and 2 percentage points due to foreign exchange. Sales to all customer end-markets increased for 2010.
Grainger significantly expanded its fastener offerings in 2005, undertaking the biggest product expansion in its 78-year history by adding more than 25,000 fastener SKUs. Grainger’s 4,007-page catalog in 2006 featured 260 pages on fasteners. The company is banking on fasteners to boost its average order total above $200.
During 2008 Grainger’s Canadian subsidiary, Acklands – Grainger, acquired Excel Industriel of Granby, Quebec. Excel is a business-to-business broad line distributor of fasteners and other MRO supplies.
Additional Grainger information is available to FIN subscribers by clicking on FIN Stock Review.
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