By JEFFREY MCCRACKEN
Industrial-gas company Air Products & Chemicals Inc. made an unsolicited offer to acquire smaller rival Airgas Inc. for about $5.1 billion in cash late Thursday.
In a letter to Airgas's chief executive and board, Air Products offered to pay Airgas shareholders $60 a share in cash, a nearly 38% premium to Airgas shares' closing price Thursday of $43.53. The large premium is intended to ward off rival bids.
Air Products could launch a tender offer directly to shareholders in the coming weeks if the Airgas board does not reach a merger agreement, said people familiar with the matter. An Airgas spokeswoman declined to comment. A merger would create the largest industrial-gas maker in North America by revenue. Allentown, Pa.-based Air Products has annual sales of around $8.3 billion, selling gasses such as argon, hydrogen, and oxygen for industrial and manufacturing uses. It employs 18,900 workers and has a market capitalization about $16 billion
Airgas, based in Radnor, Pa., is in a different market segment—working with retailers who deliver propane to hardware stores and oxygen to hospitals. It employs 14,000, and has a market capitalization around $3.6 billion on sales of about $3.8 billion. Hoping to add this smaller, retail client base, Air Products has been pursuing Airgas for several months.
The chief executives of both companies met in mid-October. At that time, Air Products Chief Executive John McGlade proposed buying the company for $60 a share in stock, according to people familiar with the matter. Air Products also agreed to assume roughly $1.9 billion in Airgas debt.
Airgas Chief Executive Peter McCausland and his board turned down that offer and rejected a subsequent half cash, half stock bid in December. That second offer valued the company at $62 a share plus the assumption of debt, said these people. Its board unanimously rejected both offers, believing they undervalued the faster-growing company, said another person familiar with the talks.
Mr. McCausland, 59 years old, founded the company in the early 1980s. He owns about 9.5% of its shares, which dipped last week after the company posted weak fiscal third-quarter earnings. The latest proposal, which is expected to be made public on Friday, is fully financed by J.P. Morgan Chase & Co. The bank is serving as merger adviser on the transaction along with law firm Cravath, Swaine & Moore. Goldman Sachs Group, Bank of America Merrill Lynch and law firm Wachtell, Lipton, Rosen & Katz are advising Airgas
Like any such offer, Air Products's bid could draw out other suitors, which might include France's Air Liquide SA or Germany's Linde AG.
Air Products estimates that combining the two gas suppliers would produce some $250 million in annual savings. In its letter to Airgas, it expressed a willingness to sell assets to clear regulatory hurdles and to raise its offer if Airgas can demonstrate what it called any other "incremental value."
Wednesday, February 10, 2010
Thursday, January 28, 2010
Grainger Total MRO Solutions event draws 4,000 MRO buyers
Industrial distributor provides training, networking opportunities at customer event
Susan Avery -- Purchasing, 1/21/2010 11:12:15 AM
"Tough doesn't begin to describe the challenges you're facing" Jim Ryan, chairman, president and CEO at Grainger, said in his opening remarks to the MRO buyers attending the industrial distributor's Total MRO Solutions National Customer event this week in Orlando. The next two days, he said, "are about learning and networking with people who can help you get your business up and running" as the economy comes out of recession.
More than 2,000 of the distributor's commercial customers attended the event Jan. 17-19, which also consists of a trade show with more than 400 of its manufacturer suppliers. Grainger is repeating the event again on Jan. 20-22 for a second set of customers.
Attendees, many of whom are purchasing professionals who source MRO goods and services, heard about the economic recovery from Nigel Gault, chief U.S. economist at IHS Global Insight, and the state of the distribution industry from David Manthey, senior analyst with Robert W. Baird. The two each gave an address following Ryan's opening remarks.
Gault said that the economic recovery, which started in the fourth quarter of 2009, won't be "gangbusters" because the current business cycle is not normal. While the economy got a boost from businesses restocking inventory and fiscal and monetary policy, high unemployment and lingering effects of the financial crisis will be a drag on growth in 2010, he said.
Along that same theme, Manthey said that the recovery would be "subdued" for companies in the distribution industry. Results of a survey of industrial distributors he conducted last year show revenues starting to pick up in the fourth quarter of 2009 and climbing just 2.4% in 2010. Beyond that, he said, the industry will continue to see consolidation.
The event began on Sunday, with a Solutions Under the Sun networking session that provided opportunities for attendees to meet with industry experts, Grainger executives and their peers in an informal setting. Grainger execs were positioned in tents set up for the event that focused on some of the company's key markets: contractors and facility maintenance; manufacturing-facility and plant maintenance; transportation, warehousing and distribution; healthcare and hospitality and retail. A reception and dinner followed the networking.
Eric Sandford, director of supply management, at OmniSource Southeast, took part in the networking session, sharing experiences of his team with his peers. Sandford is expanding the structured MRO sourcing program he set up, using his company's relationship with Grainger as a benchmark. Sandford and his team keep an eye on MRO inventory using the distributor's KeepStock (or vendor managed) inventory program.
Of the growth in the event compared with last year, Mike Pulick, president, Grainger U.S., told Purchasing.com, "We take continuous improvement seriously." There were more manufacturer suppliers at the trade show, more networking opportunities and more customers attending at the 2010 event. In fact, the industrial distributor held the gathering twice during the week for two separate groups of customers. In total, more than 4,000 purchasing and maintenance professionals took part.
Speaking to the current business climate, Pulick said, "Our customers are starting to increase production, but are doing it with the same resources. So, they have to be more productive. We see this as an opportunity to show our customers how to be more efficient at purchasing MRO items."
To that end, the distributor offered at its event educational training session on topics that concern its customers. These are: inventory management, safety, sustainability and business continuity.
At the training session on inventory management, Kevin Heath, vice president of strategic sourcing at Georgia Pacific, told attendees that he views MRO as opportunity for continuous improvement. Georgia Pacific spends $80 million annually on general mill supplies. The category is the first that Heath and his team selected in an effort to consolidate the company's purchasing and supply base.
For Georgia Pacific, consolidating the category has helped to lower inventory levels by 20%, increase productivity and improve equipment reliability, he said.
On the trade show floor, Sam Kim, vice president, e-commerce, provided customers with an overview of Grainger's online buying activities. In the past year, the company refined the search capability (by product attributes) of its website and added a merchandizing feature that suggests related products. It also introduced functionality embedded within grainger.com that allows users to customize some products such as hard hats, safety signs and mats.
Tom Blue, vice president of sales at Milwaukee Tools in Milwaukee, one of Grainger's manufacturer suppliers with a booth on the show floor, uses the event to demonstrate new products to Grainger customers, including new test and measurement tools. He told Purchasing.com that his company continued to introduce new products in 2009 viewing the economic downturn as an opportunity for the company to grow its business and take market share from competitors.
Mark Lindstrom, vice president of sales at Ergodyne in St. Paul, Minn., another supplier exhibitor, said that he likes having access to both Grainger sellers and end users. "This is one of the more productive distributor shows we attend," he said
Susan Avery -- Purchasing, 1/21/2010 11:12:15 AM
"Tough doesn't begin to describe the challenges you're facing" Jim Ryan, chairman, president and CEO at Grainger, said in his opening remarks to the MRO buyers attending the industrial distributor's Total MRO Solutions National Customer event this week in Orlando. The next two days, he said, "are about learning and networking with people who can help you get your business up and running" as the economy comes out of recession.
More than 2,000 of the distributor's commercial customers attended the event Jan. 17-19, which also consists of a trade show with more than 400 of its manufacturer suppliers. Grainger is repeating the event again on Jan. 20-22 for a second set of customers.
Attendees, many of whom are purchasing professionals who source MRO goods and services, heard about the economic recovery from Nigel Gault, chief U.S. economist at IHS Global Insight, and the state of the distribution industry from David Manthey, senior analyst with Robert W. Baird. The two each gave an address following Ryan's opening remarks.
Gault said that the economic recovery, which started in the fourth quarter of 2009, won't be "gangbusters" because the current business cycle is not normal. While the economy got a boost from businesses restocking inventory and fiscal and monetary policy, high unemployment and lingering effects of the financial crisis will be a drag on growth in 2010, he said.
Along that same theme, Manthey said that the recovery would be "subdued" for companies in the distribution industry. Results of a survey of industrial distributors he conducted last year show revenues starting to pick up in the fourth quarter of 2009 and climbing just 2.4% in 2010. Beyond that, he said, the industry will continue to see consolidation.
The event began on Sunday, with a Solutions Under the Sun networking session that provided opportunities for attendees to meet with industry experts, Grainger executives and their peers in an informal setting. Grainger execs were positioned in tents set up for the event that focused on some of the company's key markets: contractors and facility maintenance; manufacturing-facility and plant maintenance; transportation, warehousing and distribution; healthcare and hospitality and retail. A reception and dinner followed the networking.
Eric Sandford, director of supply management, at OmniSource Southeast, took part in the networking session, sharing experiences of his team with his peers. Sandford is expanding the structured MRO sourcing program he set up, using his company's relationship with Grainger as a benchmark. Sandford and his team keep an eye on MRO inventory using the distributor's KeepStock (or vendor managed) inventory program.
Of the growth in the event compared with last year, Mike Pulick, president, Grainger U.S., told Purchasing.com, "We take continuous improvement seriously." There were more manufacturer suppliers at the trade show, more networking opportunities and more customers attending at the 2010 event. In fact, the industrial distributor held the gathering twice during the week for two separate groups of customers. In total, more than 4,000 purchasing and maintenance professionals took part.
Speaking to the current business climate, Pulick said, "Our customers are starting to increase production, but are doing it with the same resources. So, they have to be more productive. We see this as an opportunity to show our customers how to be more efficient at purchasing MRO items."
To that end, the distributor offered at its event educational training session on topics that concern its customers. These are: inventory management, safety, sustainability and business continuity.
At the training session on inventory management, Kevin Heath, vice president of strategic sourcing at Georgia Pacific, told attendees that he views MRO as opportunity for continuous improvement. Georgia Pacific spends $80 million annually on general mill supplies. The category is the first that Heath and his team selected in an effort to consolidate the company's purchasing and supply base.
For Georgia Pacific, consolidating the category has helped to lower inventory levels by 20%, increase productivity and improve equipment reliability, he said.
On the trade show floor, Sam Kim, vice president, e-commerce, provided customers with an overview of Grainger's online buying activities. In the past year, the company refined the search capability (by product attributes) of its website and added a merchandizing feature that suggests related products. It also introduced functionality embedded within grainger.com that allows users to customize some products such as hard hats, safety signs and mats.
Tom Blue, vice president of sales at Milwaukee Tools in Milwaukee, one of Grainger's manufacturer suppliers with a booth on the show floor, uses the event to demonstrate new products to Grainger customers, including new test and measurement tools. He told Purchasing.com that his company continued to introduce new products in 2009 viewing the economic downturn as an opportunity for the company to grow its business and take market share from competitors.
Mark Lindstrom, vice president of sales at Ergodyne in St. Paul, Minn., another supplier exhibitor, said that he likes having access to both Grainger sellers and end users. "This is one of the more productive distributor shows we attend," he said
Grainger Reports Year End Results
Grainger Reports Sales of $6.2 Billion and Earnings Per Share of $5.62 for the Year Ended December 31, 2009
--Highlights --
4Q09 sales of $1.6 billion, up 3 percent
4Q09 EPS of $1.27, down 7 percent, including the following items:
$0.07 in asset impairment charges
$0.05 in severance charges
$732 million in operating cash flow for the year
$507 million returned to shareholders in dividends & share repurchases in 2009
Pretax ROIC* of 24.9 percent versus 29.8 percent in 2008
Visit www.grainger.com/investor to access a podcast describing Grainger's performance in more detail.
CHICAGO, Jan 26, 2010 /PRNewswire via COMTEX/ -- Grainger (NYSE: GWW) today reported sales, earnings and earnings per share for the year ended December 31, 2009. Sales of $6.2 billion were down 9 percent versus 2008. Net earnings of $430 million decreased 9 percent versus $475 million in 2008. Earnings per share of $5.62 decreased 6 percent versus $5.97** in 2008.
"I am very proud of our employees and how they have successfully navigated this company through one of the most difficult economic times in our history," said Chairman, President and Chief Executive Officer Jim Ryan. "The actions we took in 2009 to keep service levels and customer relationships strong are paying off. I am excited about the opportunity we have going forward to gain additional market share and create value for our shareholders by serving as the indispensable MRO partner to businesses and institutions."
*The GAAP financial statements are the source for all amounts used in the Return on Invested Capital (ROIC) calculation. ROIC is calculated using annualized operating earnings based on year-to-date operating earnings divided by a 13 point average for net working assets. Net working assets are working assets minus working liabilities defined as follows: working assets equal total assets less cash equivalents (non operating cash), deferred taxes, and investments in unconsolidated entities, plus the LIFO reserve. Working liabilities are the sum of trade payables, accrued compensation and benefits, accrued contributions to employees' profit sharing plans, and accrued expenses.
** Reported 2008 EPS were $6.04, which was restated after adopting FSP 03-6-1 on January 1, 2009, resulting in a 7 cent reduction in EPS in 2008 and 6 cents in 2009. (See page K-41 of the company's 2008 10-K for additional information).
Ryan added, "We are seeing some initial signs of improvement in the overall economy, although job growth is expected to lag the recovery. Stronger sales growth in December and January give us greater confidence to raise our 2010 sales growth guidance to a range of 6 to 10 percent and our earnings per share guidance to the new range of $5.40 to $5.90. We remain cautiously optimistic about the economy and are executing on the things we can control like our customer service and high product availability. As a result, we are well positioned for continued share gain, particularly as many competitors have been forced to reduce inventories." The company had previously issued 2010 guidance of 4 to 9 percent sales growth and earnings per share of $5.30 to $5.80.
For the 2009 fourth quarter, sales of $1.6 billion increased 3 percent versus the fourth quarter of 2008. There were 64 sales days in both the 2009 and 2008 fourth quarters. Daily sales decreased 3 percent in October, increased 2 percent in November and increased 11 percent in December. The 3 percent increase for the quarter included a 4 percentage point contribution from acquisitions, a 2 percentage point benefit from foreign exchange and a 2 percentage point lift from price increases, partially offset by a 5 percentage point decline in volume. Net earnings of $97 million decreased 10 percent versus $108 million in 2008. Earnings per share of $1.27 decreased 7 percent versus $1.37 in 2008. The effect of adopting FSP 03-6-1 was a 1 cent per share reduction in the fourth quarter of 2009 and 2 cents in the 2008 quarter.
During the quarter, the company continued to lower its cost structure by closing branches and reducing headcount. In total, 12 branches, including 6 Will Call Express locations, were closed. These closures, along with other asset write-downs, resulted in asset impairment charges of $9 million or 7 cents per share. In addition, the company reduced headcount by another 200 positions in the 2009 fourth quarter, incurring $7.5 million or 5 cents per share in severance cost. For the full year 2009, the company eliminated approximately 600positions and incurred $18 million in severance or 11 cents per share.
Effective with the first quarter of 2009, the company has two reportable business segments, the United States and Canada, which represent approximately 98 percent of full year company sales. This reporting structure reflects the integration of Lab Safety Supply with Grainger's U.S. branch-based business. The remaining operating units (Japan, Mexico, India, Puerto Rico, China and Panama) are included in other businesses and are not considered a segment. The company acquired Asia Pacific Brands India Private Limited in June 2009 resulting in the inclusion of the India operations in other businesses in the third quarter. The company also acquired a majority ownership of MonotaRO in September 2009, consolidated this Japanese entity in its balance sheet as of the end of the third quarter and began consolidating its income statement in the fourth quarter.
United States
Sales for the United States segment decreased 2 percent in the 2009 fourth quarter, with daily sales down 7 percent in October, down 3 percent in November and up 5 percent in December. Acquisitions and the timing of the Christmas holiday accounted for 3 percentage points of the sales growth in December.
Grainger serves a diverse set of customer end-markets in the United States. During the quarter, sales to government and commercial customers increased versus the 2008 fourth quarter, while sales to resellers, contractors, manufacturing and retail customers declined.
Throughout 2009, Grainger added products to its already broad offering that will result in having approximately 307,000 in-stock products in the 2010 catalog. Product line expansion contributed $260 million in sales for the fourth quarter versus $185 million in the 2008 fourth quarter. Products added over the last four years resulted in $934 million in sales in 2009.
Also contributing to segment performance in the quarter was ongoing work to integrate Lab Safety Supply with Grainger Industrial Supply. The company still expects this combination to deliver $70-$100 million in incremental revenue and $20-$30 million in cost savings by mid-2010. Through the end of 2009, the integration has generated $44 million of the additional revenue and $22 million of the cost savings.
Operating earnings for the quarter were down 6 percent in the United States, the result of operating expenses declining at a slower rate than sales. The decline in operating expenses was primarily the result of lower payroll-related expenses, reduced commissions and no bonus accruals, partially offset by higher severance and asset impairment charges particularly related to the branch closings. Gross profit margins for the quarter were flat with the prior year.
Canada
Sales for the Acklands-Grainger business in the quarter were up 11 percent versus the 2008 fourth quarter in U.S. dollars. In local currency, sales were down 3 percent for the quarter and on a daily basis were down 7 percent in October, down 8 percent in November and up 7 percent in December. Sales performance in December benefited from some large customer orders and the incremental sales from an acquisition. From a customer sector standpoint, the 3 percent sales decline for the quarter was attributable to continued weakness among heavy manufacturing, contractor and forestry, partially offset by growth among utilities, government and agriculture and mining.
Operating earnings in Canada increased 59 percent in the 2009 fourth quarter and were up 38 percent in local currency. This improvement resulted from the sales increase, a 0.9 percentage point improvement in gross profit margins, and operating expenses which increased at a slower rate than sales. The improvement in gross margins was driven by a year-end inventory pick up primarily attributable to lower than forecasted transportation and product costs. Product costs were lower than expected due in part to favorable foreign exchange. The 2008 fourth quarter included a charge for the bankruptcy of a provider of freight payment services. Excluding these items, operating earnings were up 6 percent in U.S. dollars, and down 7 percent in local currency, versus 2008.
--Highlights --
4Q09 sales of $1.6 billion, up 3 percent
4Q09 EPS of $1.27, down 7 percent, including the following items:
$0.07 in asset impairment charges
$0.05 in severance charges
$732 million in operating cash flow for the year
$507 million returned to shareholders in dividends & share repurchases in 2009
Pretax ROIC* of 24.9 percent versus 29.8 percent in 2008
Visit www.grainger.com/investor to access a podcast describing Grainger's performance in more detail.
CHICAGO, Jan 26, 2010 /PRNewswire via COMTEX/ -- Grainger (NYSE: GWW) today reported sales, earnings and earnings per share for the year ended December 31, 2009. Sales of $6.2 billion were down 9 percent versus 2008. Net earnings of $430 million decreased 9 percent versus $475 million in 2008. Earnings per share of $5.62 decreased 6 percent versus $5.97** in 2008.
"I am very proud of our employees and how they have successfully navigated this company through one of the most difficult economic times in our history," said Chairman, President and Chief Executive Officer Jim Ryan. "The actions we took in 2009 to keep service levels and customer relationships strong are paying off. I am excited about the opportunity we have going forward to gain additional market share and create value for our shareholders by serving as the indispensable MRO partner to businesses and institutions."
*The GAAP financial statements are the source for all amounts used in the Return on Invested Capital (ROIC) calculation. ROIC is calculated using annualized operating earnings based on year-to-date operating earnings divided by a 13 point average for net working assets. Net working assets are working assets minus working liabilities defined as follows: working assets equal total assets less cash equivalents (non operating cash), deferred taxes, and investments in unconsolidated entities, plus the LIFO reserve. Working liabilities are the sum of trade payables, accrued compensation and benefits, accrued contributions to employees' profit sharing plans, and accrued expenses.
** Reported 2008 EPS were $6.04, which was restated after adopting FSP 03-6-1 on January 1, 2009, resulting in a 7 cent reduction in EPS in 2008 and 6 cents in 2009. (See page K-41 of the company's 2008 10-K for additional information).
Ryan added, "We are seeing some initial signs of improvement in the overall economy, although job growth is expected to lag the recovery. Stronger sales growth in December and January give us greater confidence to raise our 2010 sales growth guidance to a range of 6 to 10 percent and our earnings per share guidance to the new range of $5.40 to $5.90. We remain cautiously optimistic about the economy and are executing on the things we can control like our customer service and high product availability. As a result, we are well positioned for continued share gain, particularly as many competitors have been forced to reduce inventories." The company had previously issued 2010 guidance of 4 to 9 percent sales growth and earnings per share of $5.30 to $5.80.
For the 2009 fourth quarter, sales of $1.6 billion increased 3 percent versus the fourth quarter of 2008. There were 64 sales days in both the 2009 and 2008 fourth quarters. Daily sales decreased 3 percent in October, increased 2 percent in November and increased 11 percent in December. The 3 percent increase for the quarter included a 4 percentage point contribution from acquisitions, a 2 percentage point benefit from foreign exchange and a 2 percentage point lift from price increases, partially offset by a 5 percentage point decline in volume. Net earnings of $97 million decreased 10 percent versus $108 million in 2008. Earnings per share of $1.27 decreased 7 percent versus $1.37 in 2008. The effect of adopting FSP 03-6-1 was a 1 cent per share reduction in the fourth quarter of 2009 and 2 cents in the 2008 quarter.
During the quarter, the company continued to lower its cost structure by closing branches and reducing headcount. In total, 12 branches, including 6 Will Call Express locations, were closed. These closures, along with other asset write-downs, resulted in asset impairment charges of $9 million or 7 cents per share. In addition, the company reduced headcount by another 200 positions in the 2009 fourth quarter, incurring $7.5 million or 5 cents per share in severance cost. For the full year 2009, the company eliminated approximately 600positions and incurred $18 million in severance or 11 cents per share.
Effective with the first quarter of 2009, the company has two reportable business segments, the United States and Canada, which represent approximately 98 percent of full year company sales. This reporting structure reflects the integration of Lab Safety Supply with Grainger's U.S. branch-based business. The remaining operating units (Japan, Mexico, India, Puerto Rico, China and Panama) are included in other businesses and are not considered a segment. The company acquired Asia Pacific Brands India Private Limited in June 2009 resulting in the inclusion of the India operations in other businesses in the third quarter. The company also acquired a majority ownership of MonotaRO in September 2009, consolidated this Japanese entity in its balance sheet as of the end of the third quarter and began consolidating its income statement in the fourth quarter.
United States
Sales for the United States segment decreased 2 percent in the 2009 fourth quarter, with daily sales down 7 percent in October, down 3 percent in November and up 5 percent in December. Acquisitions and the timing of the Christmas holiday accounted for 3 percentage points of the sales growth in December.
Grainger serves a diverse set of customer end-markets in the United States. During the quarter, sales to government and commercial customers increased versus the 2008 fourth quarter, while sales to resellers, contractors, manufacturing and retail customers declined.
Throughout 2009, Grainger added products to its already broad offering that will result in having approximately 307,000 in-stock products in the 2010 catalog. Product line expansion contributed $260 million in sales for the fourth quarter versus $185 million in the 2008 fourth quarter. Products added over the last four years resulted in $934 million in sales in 2009.
Also contributing to segment performance in the quarter was ongoing work to integrate Lab Safety Supply with Grainger Industrial Supply. The company still expects this combination to deliver $70-$100 million in incremental revenue and $20-$30 million in cost savings by mid-2010. Through the end of 2009, the integration has generated $44 million of the additional revenue and $22 million of the cost savings.
Operating earnings for the quarter were down 6 percent in the United States, the result of operating expenses declining at a slower rate than sales. The decline in operating expenses was primarily the result of lower payroll-related expenses, reduced commissions and no bonus accruals, partially offset by higher severance and asset impairment charges particularly related to the branch closings. Gross profit margins for the quarter were flat with the prior year.
Canada
Sales for the Acklands-Grainger business in the quarter were up 11 percent versus the 2008 fourth quarter in U.S. dollars. In local currency, sales were down 3 percent for the quarter and on a daily basis were down 7 percent in October, down 8 percent in November and up 7 percent in December. Sales performance in December benefited from some large customer orders and the incremental sales from an acquisition. From a customer sector standpoint, the 3 percent sales decline for the quarter was attributable to continued weakness among heavy manufacturing, contractor and forestry, partially offset by growth among utilities, government and agriculture and mining.
Operating earnings in Canada increased 59 percent in the 2009 fourth quarter and were up 38 percent in local currency. This improvement resulted from the sales increase, a 0.9 percentage point improvement in gross profit margins, and operating expenses which increased at a slower rate than sales. The improvement in gross margins was driven by a year-end inventory pick up primarily attributable to lower than forecasted transportation and product costs. Product costs were lower than expected due in part to favorable foreign exchange. The 2008 fourth quarter included a charge for the bankruptcy of a provider of freight payment services. Excluding these items, operating earnings were up 6 percent in U.S. dollars, and down 7 percent in local currency, versus 2008.
Monday, January 11, 2010
MSC's sales down 11%
Distributor points to strong cash generation, sequential sales growth as evidence of solid performance in first quarter
Victoria Fraza Kickham -- Industrial Distribution, 1/8/2010 1:33:04 PM
Industrial MRO products distributor MSC called its first-quarter results "solid" despite the ongoing difficult business climate. The Melville, N.Y.-based company reported lower sales and earnings compared to the first quarter of 2009, but pointed to strong cash generation performance and sequential average daily sales growth as positive achievements in a challenging market.
MSC's sales fell 11 percent for the quarter to $384.8 million, compared with $433 million a year ago. The distributor's operating income for the quarter was $51 million, compared with $74.4 million a year ago, while net income was $31.4 million compared with $45.1 million in the prior-year period. Earnings per share fell 31 percent to 50 cents, compared to 72 cents a share in the first quarter of 2009.
"The fiscal first quarter produced solid results for MSC," president and CEO David Sandler said in a statement announcing the results. "Despite operating in a business environment that remained difficult, we generated results in line with our expectations and continued to take market share. ..."
MSC posted sequential average daily sales growth of 12 percent from fiscal fourth-quarter levels, and generated $41.7 million in free cash during the period. Looking ahead, MSC said it expects second-quarter earnings per share to be between 43 cents and 47 cents on net sales of between $384 million and $396 million.
Victoria Fraza Kickham -- Industrial Distribution, 1/8/2010 1:33:04 PM
Industrial MRO products distributor MSC called its first-quarter results "solid" despite the ongoing difficult business climate. The Melville, N.Y.-based company reported lower sales and earnings compared to the first quarter of 2009, but pointed to strong cash generation performance and sequential average daily sales growth as positive achievements in a challenging market.
MSC's sales fell 11 percent for the quarter to $384.8 million, compared with $433 million a year ago. The distributor's operating income for the quarter was $51 million, compared with $74.4 million a year ago, while net income was $31.4 million compared with $45.1 million in the prior-year period. Earnings per share fell 31 percent to 50 cents, compared to 72 cents a share in the first quarter of 2009.
"The fiscal first quarter produced solid results for MSC," president and CEO David Sandler said in a statement announcing the results. "Despite operating in a business environment that remained difficult, we generated results in line with our expectations and continued to take market share. ..."
MSC posted sequential average daily sales growth of 12 percent from fiscal fourth-quarter levels, and generated $41.7 million in free cash during the period. Looking ahead, MSC said it expects second-quarter earnings per share to be between 43 cents and 47 cents on net sales of between $384 million and $396 million.
Thursday, December 17, 2009
Bunzl PLC (BNZL.LN) Announces Results
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--Distribution and outsourcing group Bunzl PLC (BNZL.LN) Monday said full-year trading is in line with expectations, enabling it to take advantage of opportunities to develop further.
The company said full-year revenue rose 11% on the year, buoyed by positive currency exchange. At constant exchange rates, underlying revenue in the second half is some 1% below the 2008 figure but this is a slight improvement in the growth rate compared to the first half of 2009.
Bunzl said its operating margin has also improved compared to the first half, largely due to cost cutting and a reduced negative transaction impact from foreign exchange, particularly in the U.K. & Ireland and Australasia. Revenue growth in North America in the second half is slightly stronger than the 2% growth recorded in the first half, due to new customer wins and additional business with existing accounts, but revenue in the U.K. & Ireland continued to be below last year's - hit by the weak economy.
Bunzl, based in London, provides outsourcing solutions and service-oriented distribution, supplying a broad range of non-food consumable products. Its main customer markets include grocery, food service, cleaning and safety, non-food retail and health care.
Bunzl shares closed Friday at 657 pence, giving the company a market valuation of GBP2.16 billion. They've risen 11.4% since the start of the year.
-By Anita Likus, Dow Jones Newswires; +44 20 7842 9407; anita.likus@dowjones.com
LONDON (Dow Jones)--Distribution and outsourcing group Bunzl PLC (BNZL.LN) Monday said full-year trading is in line with expectations, enabling it to take advantage of opportunities to develop further.
The company said full-year revenue rose 11% on the year, buoyed by positive currency exchange. At constant exchange rates, underlying revenue in the second half is some 1% below the 2008 figure but this is a slight improvement in the growth rate compared to the first half of 2009.
Bunzl said its operating margin has also improved compared to the first half, largely due to cost cutting and a reduced negative transaction impact from foreign exchange, particularly in the U.K. & Ireland and Australasia. Revenue growth in North America in the second half is slightly stronger than the 2% growth recorded in the first half, due to new customer wins and additional business with existing accounts, but revenue in the U.K. & Ireland continued to be below last year's - hit by the weak economy.
Bunzl, based in London, provides outsourcing solutions and service-oriented distribution, supplying a broad range of non-food consumable products. Its main customer markets include grocery, food service, cleaning and safety, non-food retail and health care.
Bunzl shares closed Friday at 657 pence, giving the company a market valuation of GBP2.16 billion. They've risen 11.4% since the start of the year.
-By Anita Likus, Dow Jones Newswires; +44 20 7842 9407; anita.likus@dowjones.com
Wednesday, December 16, 2009
WW Grainger Sales Show Further Improvement In November
DOW JONES NEWSWIRES-December 10, 2009: 08:52 AM ET
W.W. Grainger Inc. (GWW) reported a 3% drop in November daily sales in the U.S. as year-over-year comparisons for the industrial-supply company continue to ease. The figure is the best for the company this year, and including acquisitions and other impacts, Grainger's total global sales rose 2%. That compares with a 3% drop in October and double-digit declines earlier in 2009. November had one additional selling day from the prior-year period.
Grainger, considered a bellwether of the U.S. economy because of the breadth of its types of products, also reported a 7% increase in November daily sales in Canada, though they were down 8% excluding currency changes. Sales more than tripled at its other regions, aided by acquisitions in Japan and India. The company, whose products range from lighting to mechanical to janitorial, in October said it expected fourth-quarter comparisons to improve compared with a year earlier, when sales tumbled as the economy worsened.
Shares closed Wednesday at $97.73 and didn't trade premarket.
W.W. Grainger Inc. (GWW) reported a 3% drop in November daily sales in the U.S. as year-over-year comparisons for the industrial-supply company continue to ease. The figure is the best for the company this year, and including acquisitions and other impacts, Grainger's total global sales rose 2%. That compares with a 3% drop in October and double-digit declines earlier in 2009. November had one additional selling day from the prior-year period.
Grainger, considered a bellwether of the U.S. economy because of the breadth of its types of products, also reported a 7% increase in November daily sales in Canada, though they were down 8% excluding currency changes. Sales more than tripled at its other regions, aided by acquisitions in Japan and India. The company, whose products range from lighting to mechanical to janitorial, in October said it expected fourth-quarter comparisons to improve compared with a year earlier, when sales tumbled as the economy worsened.
Shares closed Wednesday at $97.73 and didn't trade premarket.
Tuesday, December 15, 2009
ISA launches Industrial Supply Guide
Online tool helps manufacturers, distributors and end users find MRO products and services quickly and easily
Victoria Fraza Kickham -- Industrial Distribution, 12/11/2009 10:27:50 AM
The Industrial Supply Assn., a trade group representing distributors and manufacturers of maintenance, repair and operations (MRO) products, has launched an online Industrial Supply Guide to help members and others find industrial products and services quickly and easily on the Web.
Located on ISA's Web site, www.isapartners.org, the guide features a wide range of products and services exclusively for the MRO industry and designed to assist ISA members and others in their purchasing decisions.The industry-specific guide allows users to perform keyword- and category-driven searches, ISA said, and also has Request for Information (RFI) functionality. The RFI feature allows users to contact participating suppliers with a click of their mouse.
Participating manufacturers and distributors can purchase a company listing, direct Web site link and email generation capacity, and can also add videos to their listing. ISA partnered with electronic buyer and supplier guide publisher MultiView Inc. to produce the guide.
"For the first time, MRO professionals and customers will have access to specialized products and services through the industry's leading resource," said MultiView president Dan Maitland. "Cutting through the clutter of multiple search engines and finding exactly what you are looking for, all at the same time, is a wonderful benefit to each and every channel member."
Victoria Fraza Kickham -- Industrial Distribution, 12/11/2009 10:27:50 AM
The Industrial Supply Assn., a trade group representing distributors and manufacturers of maintenance, repair and operations (MRO) products, has launched an online Industrial Supply Guide to help members and others find industrial products and services quickly and easily on the Web.
Located on ISA's Web site, www.isapartners.org, the guide features a wide range of products and services exclusively for the MRO industry and designed to assist ISA members and others in their purchasing decisions.The industry-specific guide allows users to perform keyword- and category-driven searches, ISA said, and also has Request for Information (RFI) functionality. The RFI feature allows users to contact participating suppliers with a click of their mouse.
Participating manufacturers and distributors can purchase a company listing, direct Web site link and email generation capacity, and can also add videos to their listing. ISA partnered with electronic buyer and supplier guide publisher MultiView Inc. to produce the guide.
"For the first time, MRO professionals and customers will have access to specialized products and services through the industry's leading resource," said MultiView president Dan Maitland. "Cutting through the clutter of multiple search engines and finding exactly what you are looking for, all at the same time, is a wonderful benefit to each and every channel member."
Friday, December 4, 2009
Grainger rolls out tools to help MRO buyers track stimulus spending
New ordering tools also let buyers track Buy American Act compliance
Susan Avery -- Purchasing, 12/1/2009 11:57:52 AM
Grainger has developed a set of new capabilities to help customers who receive funding through the American Recovery and Reinvestment Act (ARRA) comply with its requirements including those related to provisions of the Buy American Act. Customers who receive the funding may include purchasing professionals at manufacturing companies, construction companies and utilities. With the funding they may source through the distributor maintenance, repair and operations (MRO) products such as safety supplies, material handling equipment, HVAC (heating, ventilation, air conditioning) equipment, lighting and electric motors, among others.
"One of the areas that is top of mind for many of our customers is how to navigate the complexities of tracking their stimulus bill [ARRA] purchases," says Paul Kindzierski, vice president, Grainger Industrial Supply Sales. "We've made it easier to comply with the detailed reporting requirements for purchases across our broad product offering, enabling them to consolidate their MRO purchases with us and focus their resources on their core business."After the ARRA was passed in February, Grainger put together a cross functional team of its employees to determine the impact it would have on MRO buyers, Drew Fichter, customer business issues associate, told Purchasing in an exclusive interview."On the surface, it seems simple, but when you look at the scale at which the stimulus is being implemented, impacting a variety of industries and government agencies, it becomes extremely complex," he says.
According to the website Recovery.gov, the ARRA is intended "to provide a short-term jumpstart to the economy, with many projects funded by the $787 billion in recovery money, especially infrastructure improvements, expected to benefit the economy for many years." These long-term projects include investments in the renewable energy and energy-efficiency industries, government buildings and the nation's infrastructure.The act also created the Recovery.gov website to provide transparency to the American people about how recipients are using funds and to increase accountability helping guard against fraud, waste and abuse. To this end, recipients of the ARRA funds must report on their use including the amount of money received, the money spent, the scope of the project and the number of jobs created on a website that feeds into Recovery.gov. This process began in October.
Grainger's team focused on two issues it determined would impact customers who receive the funds and use them to purchase MRO products through the distributor: (1) transparency and accountability of the ARRA and (2) its requirements related to provisions of the Buy American Act. "These two issues put strict requirements on Grainger and our customers," says Fichter. For instance, he explains that under certain circumstances, customers are required to purchase products that comply with the Buy American Act and track how they spend the money.
To help customers track how they spend the ARRA funds on MRO products they purchase from Grainger, the distributor enhanced its ordering system to electronically flag a order that's purchased with the funds at the time it is placed, by phone, at a branch or online. In each case, the customer must identify the order as an ARRA or stimulus order. "By doing this, we can track a customer's ARRA spending with Grainger and at their request provide a report detailing their purchases which can ultimately help them comply with the quarterly reporting requirements," says Fichter. To comply with the provisions of the Buy American Act, the most important information buyers need is country of origin of the products they are purchasing, which Grainger has been routinely gathering from suppliers for years now, Fichter says.
The distributor makes country of origin information available in several forms: Buyers can obtain it when they let their service representative know they are making a purchase with the ARRA funds. They can also find the information in the product item description on grainger.com. And the supplier includes it in its response to RFQs (request for quotation) it receives from customers."All these measures are really meant to inform the customer and to provide them with critical information they need to make an informed decision based on the ARRA requirements," says Fichter, adding that the distributor is making every effort to inform customers on the Buy American provisions because there are some circumstances under the ARRA requirements where they are waived.
At the same time, Grainger is dedicating resources to training and educating both its employees and its customers on the ARRA. "Because we had a team that's been dedicated to understanding the act we have been able to leverage that knowledge when working with our customers," Fichter says. The company also has created a landing page on grainger.com (www.grainger.com/stimulus) that provides MRO buyers with additional information.
Susan Avery -- Purchasing, 12/1/2009 11:57:52 AM
Grainger has developed a set of new capabilities to help customers who receive funding through the American Recovery and Reinvestment Act (ARRA) comply with its requirements including those related to provisions of the Buy American Act. Customers who receive the funding may include purchasing professionals at manufacturing companies, construction companies and utilities. With the funding they may source through the distributor maintenance, repair and operations (MRO) products such as safety supplies, material handling equipment, HVAC (heating, ventilation, air conditioning) equipment, lighting and electric motors, among others.
"One of the areas that is top of mind for many of our customers is how to navigate the complexities of tracking their stimulus bill [ARRA] purchases," says Paul Kindzierski, vice president, Grainger Industrial Supply Sales. "We've made it easier to comply with the detailed reporting requirements for purchases across our broad product offering, enabling them to consolidate their MRO purchases with us and focus their resources on their core business."After the ARRA was passed in February, Grainger put together a cross functional team of its employees to determine the impact it would have on MRO buyers, Drew Fichter, customer business issues associate, told Purchasing in an exclusive interview."On the surface, it seems simple, but when you look at the scale at which the stimulus is being implemented, impacting a variety of industries and government agencies, it becomes extremely complex," he says.
According to the website Recovery.gov, the ARRA is intended "to provide a short-term jumpstart to the economy, with many projects funded by the $787 billion in recovery money, especially infrastructure improvements, expected to benefit the economy for many years." These long-term projects include investments in the renewable energy and energy-efficiency industries, government buildings and the nation's infrastructure.The act also created the Recovery.gov website to provide transparency to the American people about how recipients are using funds and to increase accountability helping guard against fraud, waste and abuse. To this end, recipients of the ARRA funds must report on their use including the amount of money received, the money spent, the scope of the project and the number of jobs created on a website that feeds into Recovery.gov. This process began in October.
Grainger's team focused on two issues it determined would impact customers who receive the funds and use them to purchase MRO products through the distributor: (1) transparency and accountability of the ARRA and (2) its requirements related to provisions of the Buy American Act. "These two issues put strict requirements on Grainger and our customers," says Fichter. For instance, he explains that under certain circumstances, customers are required to purchase products that comply with the Buy American Act and track how they spend the money.
To help customers track how they spend the ARRA funds on MRO products they purchase from Grainger, the distributor enhanced its ordering system to electronically flag a order that's purchased with the funds at the time it is placed, by phone, at a branch or online. In each case, the customer must identify the order as an ARRA or stimulus order. "By doing this, we can track a customer's ARRA spending with Grainger and at their request provide a report detailing their purchases which can ultimately help them comply with the quarterly reporting requirements," says Fichter. To comply with the provisions of the Buy American Act, the most important information buyers need is country of origin of the products they are purchasing, which Grainger has been routinely gathering from suppliers for years now, Fichter says.
The distributor makes country of origin information available in several forms: Buyers can obtain it when they let their service representative know they are making a purchase with the ARRA funds. They can also find the information in the product item description on grainger.com. And the supplier includes it in its response to RFQs (request for quotation) it receives from customers."All these measures are really meant to inform the customer and to provide them with critical information they need to make an informed decision based on the ARRA requirements," says Fichter, adding that the distributor is making every effort to inform customers on the Buy American provisions because there are some circumstances under the ARRA requirements where they are waived.
At the same time, Grainger is dedicating resources to training and educating both its employees and its customers on the ARRA. "Because we had a team that's been dedicated to understanding the act we have been able to leverage that knowledge when working with our customers," Fichter says. The company also has created a landing page on grainger.com (www.grainger.com/stimulus) that provides MRO buyers with additional information.
Wednesday, December 2, 2009
Airgas acquires Fitch Industrial and Welding Supply
Airgas Acquires Fitch Industrial & Welding Supply Based in Lawton, OK
RADNOR, PA – December 1, 2009 -- Airgas, Inc. (NYSE: ARG) today announced it has completed the acquisition of Fitch Industrial & Welding Supply (“Fitch”), an industrial gas and welding supply distributor with three locations in Oklahoma and one in Wichita Falls, TX. The Lawton, OK-based business employs 39 people and generated more than $10 million in revenue during calendar 2008.
The Oklahoma branches have been integrated into Airgas Mid-South, headquartered in Tulsa, OK, while the Wichita Falls branch has been integrated into Airgas Southwest, headquartered in Houston, TX. Airgas Mid South and Airgas Southwest are among 12 regional companies within Airgas’ distribution business.
“Fitch has a strong reputation in the area, and long-standing relationships with their customers,” said Max Hooper, Airgas western division president. “We are excited to welcome the Fitch employees to Airgas, and to provide our new customers with access to the most complete offering of products and services in the industry.”
Fitch boasts nearly 60 years of operation after its founding in 1950 by Carl Fitch. Carl’s son Fred joined the company in 1970, soon thereafter assuming his current role as president and owner.
“Fred Fitch has been an industry leader for years, not only in running his company but also in holding significant management roles, including past president, in the industry association GAWDA,” said Les Graff, Airgas senior vice president – corporate development. “We are very pleased Fred chose to join forces with Airgas, as we remain committed to strengthening our platform by investing in quality businesses.”
“It has been a true pleasure to build this business over the years, and to serve the outstanding business community in and around Lawton,” commented Fitch. “I wanted to be sure that our Fitch employees and customers had the best future possible, so it made perfect sense to join Airgas, the nation’s premier industrial gas company.”
Kevin Brown - http://www.stardustspillproducts.com/
RADNOR, PA – December 1, 2009 -- Airgas, Inc. (NYSE: ARG) today announced it has completed the acquisition of Fitch Industrial & Welding Supply (“Fitch”), an industrial gas and welding supply distributor with three locations in Oklahoma and one in Wichita Falls, TX. The Lawton, OK-based business employs 39 people and generated more than $10 million in revenue during calendar 2008.
The Oklahoma branches have been integrated into Airgas Mid-South, headquartered in Tulsa, OK, while the Wichita Falls branch has been integrated into Airgas Southwest, headquartered in Houston, TX. Airgas Mid South and Airgas Southwest are among 12 regional companies within Airgas’ distribution business.
“Fitch has a strong reputation in the area, and long-standing relationships with their customers,” said Max Hooper, Airgas western division president. “We are excited to welcome the Fitch employees to Airgas, and to provide our new customers with access to the most complete offering of products and services in the industry.”
Fitch boasts nearly 60 years of operation after its founding in 1950 by Carl Fitch. Carl’s son Fred joined the company in 1970, soon thereafter assuming his current role as president and owner.
“Fred Fitch has been an industry leader for years, not only in running his company but also in holding significant management roles, including past president, in the industry association GAWDA,” said Les Graff, Airgas senior vice president – corporate development. “We are very pleased Fred chose to join forces with Airgas, as we remain committed to strengthening our platform by investing in quality businesses.”
“It has been a true pleasure to build this business over the years, and to serve the outstanding business community in and around Lawton,” commented Fitch. “I wanted to be sure that our Fitch employees and customers had the best future possible, so it made perfect sense to join Airgas, the nation’s premier industrial gas company.”
Kevin Brown - http://www.stardustspillproducts.com/
Acklands-Grainger acquires K&D Pratt Industrial Division
Purchase strengthens distributor's business in Atlantic Canada
Industrial Distribution Staff -- Industrial Distribution, 11/30/2009 9:44:59 AM
Acklands-Grainger, the Canadian division of broad-line MRO distributor W.W. Grainger, acquired the assets of K&D Pratt Industrial Division.
K&D Pratt's industrial division sells industrial and safety products from facilities in Dartmouth, Nova Scotia; St. John's, Newfoundland; and Saint John, New Brunswick. With 2008 sales of C$12 million (approximately US$11.3 million), the division was previously one of six business units owned and operated by K&D Pratt Group Inc. Terms of the deal were not disclosed.
"We are very excited about joining forces with the K&D Pratt Industrial Division and anticipate it will help us enhance our position as our customers' indispensable partner in keeping their facilities safe, efficient and functional," Sean O'Brien, president of Acklands-Grainger, said in a statement announcing the deal. "They are a leading distributor in Atlantic Canada and their solid customer relationships and service excellence will further enhance our strong local presence in this key and growing region."
The acquisition follows two other recent purchases by W.W. Grainger. Earlier this month, Grainger bought lighting service company Alliance Energy Solutions; in October, the distributor bought Green Bay, Wis.-based Imperial Supplies, which sells maintenance products and aftermarket components for the vehicle and fleet industry.
Industrial Distribution Staff -- Industrial Distribution, 11/30/2009 9:44:59 AM
Acklands-Grainger, the Canadian division of broad-line MRO distributor W.W. Grainger, acquired the assets of K&D Pratt Industrial Division.
K&D Pratt's industrial division sells industrial and safety products from facilities in Dartmouth, Nova Scotia; St. John's, Newfoundland; and Saint John, New Brunswick. With 2008 sales of C$12 million (approximately US$11.3 million), the division was previously one of six business units owned and operated by K&D Pratt Group Inc. Terms of the deal were not disclosed.
"We are very excited about joining forces with the K&D Pratt Industrial Division and anticipate it will help us enhance our position as our customers' indispensable partner in keeping their facilities safe, efficient and functional," Sean O'Brien, president of Acklands-Grainger, said in a statement announcing the deal. "They are a leading distributor in Atlantic Canada and their solid customer relationships and service excellence will further enhance our strong local presence in this key and growing region."
The acquisition follows two other recent purchases by W.W. Grainger. Earlier this month, Grainger bought lighting service company Alliance Energy Solutions; in October, the distributor bought Green Bay, Wis.-based Imperial Supplies, which sells maintenance products and aftermarket components for the vehicle and fleet industry.
Wednesday, November 18, 2009
Sarah Palin to address STAFDA Conference in November 2010
Sarah Palin to headline 2010 STAFDA convention
Former Alaska Governor and 2008 Republican Vice Presidential nominee will deliver the keynote address at STAFDA's 34th Annual Convention & Trade Show in Phoenix
Industrial Distribution Staff -- Industrial Distribution, 11/17/2009 4:17:05 PM
Sarah Palin will deliver the keynote address at the Specialty Tools & Fasteners Distributors Assn.'s 34th Annual Convention & Trade Show, Nov. 8-10, 2010, in Phoenix.
STAFDA wrapped up its 33rd annual convention and trade show, which drew a crowd of more than 3,500, in Atlanta last week.
Palin will address STAFDA members during the group's General Session on Monday, Nov. 8, 2010. According to STAFDA officials, she will speak about her vision for energy independence, health care, fiscal responsibility, small government and national security.
"She encourages her audiences to look to the future, and challenges leaders to do more to support our military, rein in spending and shrink government while creating fiscally responsible health care that benefits all Americans," STAFDA said in a press release announcing the event.
Palin's appearance on the STAFDA stage will come one week after the November 2010 elections. And she is not the first major political figure to address STAFDA members. Former Secretary of State Colin Powell delivered the keynote address in 2005, and former U.S. Senator and 1996 Republican Presidential candidate Bob Dole addressed the crowd in 1999.
Former Alaska Governor and 2008 Republican Vice Presidential nominee will deliver the keynote address at STAFDA's 34th Annual Convention & Trade Show in Phoenix
Industrial Distribution Staff -- Industrial Distribution, 11/17/2009 4:17:05 PM
Sarah Palin will deliver the keynote address at the Specialty Tools & Fasteners Distributors Assn.'s 34th Annual Convention & Trade Show, Nov. 8-10, 2010, in Phoenix.
STAFDA wrapped up its 33rd annual convention and trade show, which drew a crowd of more than 3,500, in Atlanta last week.
Palin will address STAFDA members during the group's General Session on Monday, Nov. 8, 2010. According to STAFDA officials, she will speak about her vision for energy independence, health care, fiscal responsibility, small government and national security.
"She encourages her audiences to look to the future, and challenges leaders to do more to support our military, rein in spending and shrink government while creating fiscally responsible health care that benefits all Americans," STAFDA said in a press release announcing the event.
Palin's appearance on the STAFDA stage will come one week after the November 2010 elections. And she is not the first major political figure to address STAFDA members. Former Secretary of State Colin Powell delivered the keynote address in 2005, and former U.S. Senator and 1996 Republican Presidential candidate Bob Dole addressed the crowd in 1999.
Grainger acquires Alliance Energy Solutions
MRO distributor makes its first service-based acquisition, focused on energy-efficient lighting retrofits
Victoria Fraza Kickham -- Industrial Distribution, 11/18/2009 1:10:52 PM
Broad-line MRO distributor W.W. Grainger said it signed and closed an all-cash acquisition of Alliance Energy Solutions, a service company that provides turn-key energy-efficient lighting retrofits.
Grainger said it expects the transaction to be accretive to earnings in 2010 by approximately one cent to two cents per share. Other terms of the deal were not disclosed.
"This transaction is the first service-based acquisition we're adding to our U.S. customer offering and we anticipate it will help us accelerate our strategy to become our customers' indispensable partner in helping them keep their facilities safe, efficient and functional," Grainger's chairman, president and CEO Jim Ryan said in a statement announcing the deal.
"Our customers told us they had a need for a service to complement our deep product line around lighting products and we listened," said Mike Pulick, president of Grainger's U.S. business. "The Alliance Energy Solutions team is dedicated to helping customers through offering value-added services that help them drive energy efficiency and productivity, with particular expertise in the area of lighting retrofits. We are delighted to have them join the U.S. team."
Alliance Energy Solutions is based in Oxford, Conn., and had sales of $20 million in 2008.
Victoria Fraza Kickham -- Industrial Distribution, 11/18/2009 1:10:52 PM
Broad-line MRO distributor W.W. Grainger said it signed and closed an all-cash acquisition of Alliance Energy Solutions, a service company that provides turn-key energy-efficient lighting retrofits.
Grainger said it expects the transaction to be accretive to earnings in 2010 by approximately one cent to two cents per share. Other terms of the deal were not disclosed.
"This transaction is the first service-based acquisition we're adding to our U.S. customer offering and we anticipate it will help us accelerate our strategy to become our customers' indispensable partner in helping them keep their facilities safe, efficient and functional," Grainger's chairman, president and CEO Jim Ryan said in a statement announcing the deal.
"Our customers told us they had a need for a service to complement our deep product line around lighting products and we listened," said Mike Pulick, president of Grainger's U.S. business. "The Alliance Energy Solutions team is dedicated to helping customers through offering value-added services that help them drive energy efficiency and productivity, with particular expertise in the area of lighting retrofits. We are delighted to have them join the U.S. team."
Alliance Energy Solutions is based in Oxford, Conn., and had sales of $20 million in 2008.
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