November 2006 - Page 2 of 3 - Modern Distribution Management

November 2006

Strategic Distribution Reports 24% in 3Q Revenues

Strategic Distribution, Inc., Bristol, PA, distributor of MRO products, reported revenues of $46.2 million for the third quarter 2006 compared with $37.5 million for the third quarter of 2005. Strategic attributed the rise to $6.8 million of growth within the existing customer base and $1.9 million from new customers.  The company reported net income of $0.2 […]

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Private Equity Firm to Buy Valley National Gases for $312M

Caxton-Iseman Capital, a New York-based private investment firm, has agreed to acquire Valley National Gases Incorporated for about $312 million.Founded in 1958, Valley National is an independent U.S. distributor of industrial, medical and specialty gases delivered in packaged or cylinder form, related welding equipment and supplies, and non-pipeline propane. The company serves more than 225,000

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MDM News Digest 3621

Ferguson, Newport News, VA, has acquired Gulf Refrigeration Supply Inc. Gulf is a distributor of HVAC equipment, parts and supplies based in Tampa, Florida. In the year ended June 30, 2006, Gulf had revenue of $54.9 million. Ferguson has also acquired Kandall Fabricating & Supply Corporation KF Industries, LLC. Kandall, Passaic, NJ, is a fabricator

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Commentary: Without Price Inflation, Where Would You Be?

The second half of 2006 is staying strong. Distributors across many product sectors are reporting monthly year-to-year sales increases, many higher than 15 percent. Most economic projections pointed to a downturn by now, fueled by inflation pressures, high energy costs, and slower production rates. Except for the building materials sector, the economy is still firing,

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Case Study: Training Makes the Difference

The following case study is excerpted from Driving Growth and Shareholder Value: The Distribution Value Map," by Neil Gholson and Mark Schloegel of Deloitte Consulting LLP and published by the National Association of Wholesaler-Distributors. A distributor of electrical products recognized the need to be more agile and efficient in distributing 1.5 million SKUs from multiple

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Housing Slowdown Hits Building Materials Distributors

building products, reported a drop of 17 percent to $1.2 billion for the third quarter. Profit was $2.3 million, compared with $13.9 million in the year-ago period.The revenue decline reflects a 26.8 percent drop in structural product sales and a 1.1 percent sales decline in specialty products. About two-thirds of the decline in structural product

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Closing the Growth Gap

quarterly revenue growth averaged a healthy 6.8 percent from 2002 through mid-2006. However, the average growth rate drops to only 1.9 percent after adjusting for inflation. The wholesale distribution industry has experienced limited real growth in the past two years despite historically comparable top-line revenue growth. The revenue-enhancing benefit of product price inflation will dissipate

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MDM Inflation Index: September 2006

Modern Distribution Management’s September Inflation Index, which measures a cross-section of industrial supplies, was up 0.12% from the previous month, and up 4.43% from September 2005. Summary of MDM Inflation Index for the past 12 months: September 2006 Index 265.6August 2006 Index 265.2July 2006 Index 264.0June 2006 Index 263.0May 2006 Index 262.1April 2006 Index 262.1March 2006

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September Distributor Sales Up 8.1% From Last Year

Sales. September 2006 sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $330.2 billion, down 1.2 percent from the revised August level, but were up 8.1 percent from the September 2005 level. The August preliminary estimate was revised downward $1.4

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Rexnord Sales Up 9.1% in 2Q 2007

Rexnord Corporation, Milwaukee, WI, manufacturer of highly engineered precision motion technology products, primarily power transmission products, reported sales grew 9.1% in second quarter fiscal 2007 to $298.1 million. Rexnord recorded profit of $0.4 million for the quarter. The sales increase was driven primarily by strength in its industrial products end markets of natural resource extraction, metals

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Tencarva Machinery Acquires Engineering Equipment Company

Tencarva Machinery Company, Greensboro, NC, has acquired Engineering Equipment Company, Richmond, VA. Engineering Equipment Company had $8 million in sales last year.Tencarva reported that the acquired company has strong sales coverage in Virginia, with very little overlap with Tencarva’s territory.  ‘The acquisition of Engineering Equipment Company broadens our footprint in both the Virginia industrial and municipal

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Builders FirstSource Buys Waid Home Center

Builders FirstSource, Inc., Dallas, TX, supplier and manufacturer of structural and related building products for residential new construction in the U.S., has acquired Waid Home Center, Inc.  Based in Auburn, AL, Waid is a full-line building materials supplier with sales of $25 million in 2005. Its product offerings include: lumber, tools, windows, roofing, molding, paint,

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Baldor To Acquire Rockwell’s Power Systems Seqment for $1.8B

Baldor Electric Company, Fort Smith, AR, has agreed to acquire the Reliance Electric Company and affiliated companies of Rockwell Automation Inc., Milwaukee, WI, for $1.8 billion in cash and stock.The Power Systems business, which markets its products under the Reliance Electric and Dodge brand names, complements Baldor’s business in industrial electric motors, drives and generators.The

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HD Supply Expands Waterworks Division

HD Supply Waterworks, a division of HD Supply, has acquired Heartland Waterworks Supply in Kansas City, KS.  Heartland Waterworks Supply was founded 12 years ago and provides underground pipe, valves, meters, fittings, castings and accessories.  With one location on seven acres in Kansas City, MO, Heartland Waterworks employs 21 associates.  HD Supply Waterworks is a

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Motion Industries Opens Two New Branches

Motion Industries, Birmingham, AL, distributor of industrial MRO replacement parts, opened two new branches one in Bellingham, WA, and the other in Marietta, OH. “These two branches reflect our ongoing commitment to meet the needs of our customers in these respective areas,” said President and CEO Bill Stevens. Motion had sales of $2.8 billion in 2005. It

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