March 2007 - Modern Distribution Management

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March 2007

FCX Performance Buys RVS Controls

Finance, Free, Mergers & Acquisitions, News, Power Transmission/Motion Control/Fluid Power, Subscriber Only, Top Distributor Sectors /

Flow control distributor FCX Performance, Inc., Columbus, OH, has acquired RVS Controls & Instrumentation, distributor of process control instrumentation serving industrial customers in eastern Pennsylvania, southern New Jersey, Delaware, Maryland and Washington D.C.
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With the acquisition, FCX expands its product range offered in the area through its Sewell, NJ, branch.
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FCX has about $120 million in annual sales, 15 offices serving 21 states and more than 190 …

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Lab Supplier VWR Buys German Distributor

Chemicals & Plastics Distribution, Companies, Finance, Free, Mergers & Acquisitions, News, Safety Products, Subscriber Only, Top Distributor Sectors /

VWR International, Inc., West Chester, PA, supplier to the global research laboratory industry, has acquired the remaining 76% interest in KMF Laborchemie Handels GmbH, a German-based scientific laboratory supply distributor.
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KMF has 70 employees, all based in Germany, with annual revenues of US$45 million.
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KMF’s customers include research institutes, universities, public control laboratories, pharmaceutical and other industries. In addition to its central warehouse in Sankt Augustin, Germany, KMF has branch offices in Lohmar and Leipzig. The Company’s mission is to deliver excellence in distribution of scientific supplies and customer service.
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VWR International is a lab supply distributor with worldwide sales in excess of $3 billion. VWR’s …

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U.S. Steel to Acquire Lonestar Technologies for $2.1B

Finance, Free, Mergers & Acquisitions, Metals Service Centers, News, Subscriber Only, Top Distributor Sectors /

United States Steel Corporation, Pittsburgh, PA, has agreed to buy Lone Star Technologies, Inc., Dallas, TX, a manufacturer of welded oilfield tubular goods, for $67.50 per share in cash, or about $2.1 billion. The price is a premium of about 39% to Lone Star’s closing share price March 28, 2007.
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Lone Star Technologies, Inc. is a $1.4 billion holding company whose principal operating subsidiaries manufacture and market oilfield casing, tubing and line pipe, specialty tubing products, including finned tubes used in a variety of heat recovery applications, and flat rolled steel and other tubular products and services.
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U. S. Steel expects that the acquisition of Lone Star will strengthen its position as a producer of tubular products for the energy sector and …

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U.S. Steel to Acquire Lonestar Technologies for $2.1B Read More »

Building Materials Holding Corp Acquires Riggs Plumbing

Building Materials/Construction, Finance, Free, HVACR, Mergers & Acquisitions, News, Plumbing Products & PVF Distribution, Subscriber Only, Top Distributor Sectors /

Building Materials Holding Corporation, San Francisco, CA, announced its wholly owned subsidiary, SelectBuild Construction, Inc. has completed the acquisition of the remaining 27% of Riggs Plumbing LLC.
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Riggs provides turnkey rough and finish plumbing installation to high-volume residential builders in the Phoenix and Tucson markets and in 2006 had sales of approximately $90 million.
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SelectBuild acquired its initial interest of 60% of Riggs in April 2005 and acquired an additional 13% in July 2005.
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BMHC is a provider of services and building materials in the U.S., serving the homebuilding industry through two subsidiaries: SelectBuild provides construction services to high-volume production homebuilders in growth markets across the country; …

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Airgas to Buy Large Part of Linde’s Packaged Gas Business

Companies, Finance, Free, Gases & Welding Equipment, Mergers & Acquisitions, News, Subscriber Only, Top Distributor Sectors /

Airgas, Inc., Radnor, PA, &nbsp ; has agreed to buy a significant part of the U.S. packaged gas business of Linde AG for $310 million in cash.
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The operations to be acquired include branches, warehouses, packaged gas fill plants, and other operations involved in distributing packaged industrial and specialty gases and related equipment. The business includes 130 locations in 18 states, with more than 1,400 employees, which generated $346 million in revenues and $36 million in EBITDA in the year ended Dec. 31, 2006.&nbsp ; About 50% of the revenues were from gas sales and cylinder rent, with the remainder from sales of welding equipment and supplies.
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The proposed acquisition would be positive for customers, associates, and shareholders,” said Airgas Chairman …

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Platinum Equity Completes Purchase of Strategic Distribution

Finance, Free, Mergers & Acquisitions, News, Subscriber Only, Top Distributor Sectors /

Platinum Equity, Los Angeles, CA, has completed its acquisition of Strategic Distribution, Inc., MRO distributor to industrial and institutional customers in the U.S., Canada, and Mexico.

The acquisition is a public-to-private transaction and Strategic Distribution Inc. has been delisted from the NASDAQ exchange, with each share of common stock converted into the right to receive $10 in cash per share.

In conjunction with the acquisition, Platinum Equity announced that Rudi Strobl has been appointed as CEO of the business. Strobl is a senior executive who previously served as Deputy CEO of DyStar, a Platinum Equity company that is a manufacturer of textile …

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AmerisourceBergen to Add $2B Distributor to Portfolio

Finance, Free, Mergers & Acquisitions, News, Pharmaceutical & Health Care, Subscriber Only, Top Distributor Sectors /

AmerisourceBergen Corporation, Valley Forge, PA, has agreed to buy Bellco Health, a privately held distributor of branded and generic pharmaceuticals, for $235 million in cash.
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AmerisourceBergen said Bellco will add strength in the New York City area, as well as a sophisticated generic pharmaceuticals sales and marketing business. Bellco also sells dialysis products and services that will complement AmerisourceBergen’s specialty distribution business.
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Headquartered in North Amityville, New York, Bellco Health has annualized revenues of $2 billion and is a major pharmaceutical distributor in New York City, where it primarily services independent retail community pharmacies. Nationally, the company markets and sells generic pharmaceuticals to individual retail …

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Grainger to Expand Presence in Northeast

Companies, Facilities Maintenance (MRO), Free, News, Subscriber Only, Top Distributor Sectors /

Grainger, national distributor of facilities maintenance products, plans to expand and enhance its operations in the Northeast, particularly the New York City area, by revamping its distribution network. It will open new facilities, relocate others, and expand some of its existing facilities.

Grainger currently operates out of 23 locations in the area.&nbsp ; The company plans to increase its number of locations by about 25% and up its local workforce by 10-20%. Grainger will increase the size of its distribution network in the Tri-State area by about 40%.
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Grainger’s investments are part of the company’s market expansion initiative, a multi-year program designed to enhance Grainger’s presence in the top metropolitan markets across the U.S.&nbsp ; As part of this …

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84 Lumber Sued by EEOC

Building Materials/Construction, Free, Legal Issues in Wholesale Distribution, News, Operations, Subscriber Only, Top Distributor Sectors /

The Equal Employment Opportunity Commission has sued building materials distributor 84 Lumber, Eighty Four, PA, for failing to file an Employer Information Report for each year since 2005.
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In the lawsuit, filed in Pennsylvania’s Western District, says that 84 Lumber has not filed reports, despite “written notice and a demand for these documents from the EEOC.”
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The EEOC is the governing body that makes equal employment opportunity policy and approves most litigation. The General Counsel conducts litigation under Title VII of the Civil Rights Act of 1964, the Equal Pay Act, the Age Discrimination in Employment Act, and the Americans with Disabilities Act.
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For more information on laws and …

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Industrial Production Rises 1% in February

Economic Trends, Free, News, Research & Analytics, Subscriber Only /

Industrial production increased 1.0 percent in February after a decrease of 0.3 percent in January and a rise of 0.8 percent in December. Output in the manufacturing sector gained 0.4 percent in February and was led by increases in motor vehicles and in high-technology goods.
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The output of utilities jumped 6.7 percent in February, as colder-than-average temperatures boosted production at both electric and natural gas utilities. The output of mines edged up 0.1 percent. At 113.1 percent of its 2002 average, overall industrial production for the month was 3.4 percent above its year-earlier level.
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The rate of capacity utilization for total industry in February rose 0.6 percentage point, to 82.0 percent, a level 1.0 percentage point above its 1972-2006 average. …

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Midwest, Northeast: Steep Drops in February Housing Starts

Building Materials/Construction, Economic Trends, Free, News, Research & Analytics, Subscriber Only, Top Distributor Sectors /

Building Permits
Privately-owned housing units authorized by building permits in February were at a seasonally adjusted annual rate of 1,532,000. This is 2.5 percent (& plusmn; 1.0%) below the revised January rate of 1,571,000 and is 28.6 percent (& plusmn; 1.1%) below the February 2006 estimate of 2,147,000.
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Single-family authorizations in February were at a rate of 1,089,000; this is 3.1 percent (& plusmn; 0.9%) below the January figure of 1,124,000. Authorizations of units in buildings with five units or more were at a rate of 372,000 in February.
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Housing Starts
Privately-owned housing starts in February were at a seasonally adjusted annual rate of 1,525,000. This is 9.0 percent (& plusmn; 10.2%) …

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Midwest, Northeast: Steep Drops in February Housing Starts Read More »

Canadian Wholesale Revenues Fall in January

Economic Trends, Free, News, Research & Analytics, Subscriber Only /

Following a strong end to&nbsp ; 2006, wholesalers began the year on a subdued note, as weaker deliveries of automotive products and personal and household goods pushed overall sales lower.
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Wholesale sales declined&nbsp ; 0.5% in January to&nbsp ; $42.7&nbsp ; billion, reversing some of the&nbsp ; 2.7% gain made in December. Significant drops in the automotive products (-4.6%) and personal and household goods (-4.5%) sectors were behind all of decline in January. Both of these sectors had posted substantial gains in December.
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The remaining five wholesale sectors, representing&nbsp ; 67% of overall sales, all registered increases in January, led by the building materials and machinery and electronic equipment sectors.
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Ontario bore the brunt of …

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Carlyle Group to Buy Goodyear Division for $1.5B

Chemicals & Plastics Distribution, Finance, Free, Mergers & Acquisitions, News, Subscriber Only, Top Distributor Sectors /

Private equity firm The Carlyle Group has agreed to acquire The Goodyear Tire & Rubber Company’s Engineered Products Division for $1.475 billion in cash.

Goodyear Engineered Products manufactures hoses, conveyor belts and power transmission belts, as well as tank tracks for military and off-road vehicles. With approximately $1.5 billion in sales, the company serves more than 4,500 customers around the world in a variety of end markets. Following the transaction, the company’s headquarters will remain inAkron, OH, and current management, including President and CEO Timothy R. Toppen, will continue to lead the business.

The Goodyear Tire & Rubber Company is one of the world’s largest …

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Carlyle Group to Buy Goodyear Division for $1.5B Read More »

Norcross Sales Grow 16% in 2006

Free, News, Safety Products, Subscriber Only, Top Distributor Sectors /

Safety Products Holdings Inc. and Norcross Safety Products,Oak Brook, IL , reported sales of $558.1 million in 2006, up from $481 million in 2005, a 16% increase. The sales jump was attributed to an increase in sales in general safety and preparedness and electrical safety segments.

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In the general safety and preparedness segment, sales were up 17.7%. Fire service segment sales were even at $87.9 million -incremental American Firewear sales were offset by postponed customer orders due partly to government grant holdups and a delay in the issuance of the new NFPA standard. In the electrical safety segment, sales were up 30%, driven by strong market demand, new product …

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Norcross Sales Grow 16% in 2006 Read More »

Iron Age Shuts Down

Free, News, Safety Products, Subscriber Only, Top Distributor Sectors /

Iron Age Corp., distributor and marketer of safety shoes, Westborough, MA , is shutting down after filing for bankruptcy in January. The company sold safety, work and uniform shoes to industrial, service and government sectors.
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Iron Age filed for Ch. 11 bankruptcy Jan. 22, 2007.
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In the bankruptcy filing in Massachusetts, CEO David Eckert said in an affidavit that the company had experienced liquidity issues” in the last quarter of 2006 and filed bankruptcy in order to pursue selling the business or liquidating its assets.
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Iron Age had sales of $85.07 million for the fiscal year ended Jan. 28, 2006, according to the filing. For fiscal 2007, the company had projected revenues of $75 million. Figures include Iron Age, and Iron Age Canada, a …

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Premier Farnell Sells UK-Based BuckHickman

Finance, Free, Mergers & Acquisitions, News, Subscriber Only, Top Distributor Sectors /

Premier Farnell plc has agreed to sell BuckHickman InOne, a distributor of industrial tools and supplies, to The BSS Group plc for about & pound; 27 million.

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BuckHickman had sales of & pound; 99.8 million and operating losses before interest and tax of & pound; 0.8 million for the financial year ended Jan. 28, 2007.

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Premier Farnell is a global distributor of electronic components and industrial products to the design, maintenance and engineering sectors. It operates in 21 countries. Companies within Premier Farnell Group include Farnell, CPC, BuckHickman InOne, Newark , MCM, Akron Brass, TPC Wire & Cable and Cadillac Electric.

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It is …

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Kennametal to Buy Advanced Materials Business

Finance, Free, Mergers & Acquisitions, News, Subscriber Only, Top Distributor Sectors /

Kennametal Inc., Latrobe, PA, has agreed to buy Purity Metal Holdings Inc. and its subsidiary International Specialty Alloys Inc.&nbsp ; ISA will become part of Kennametal’s Advanced Materials Solutions Group.
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ISA manufactures high-purity specialty metal products for the aerospace, defense and super alloy industries.
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This acquisition further supports Kennametal’s growth and investment strategies, which include expanding AMSG to eventually represent 50% of its …

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MDM News Digest 3706

Free, Subscriber Only /

Beacon Roofing Supply, Inc., Peabody, MA, has agreed to acquire North Coast Commercial Roofing Systems, Inc., a Twinsburg, OH-based distributor of commercial roofing systems and related accessories, with 16 locations in eight U.S. states. North Coast gives Beacon with its first locations in three states: New York, Ohio and West Virginia. North Coast had sales of about $253 million for the fiscal year ended March 31, 2006. Beacon had sales of $1.5 billion in 2006.More …
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January U.S. manufacturing technology consumption totaled $297.48 million, according to the American Machine Tool Distributors’Association and The Association For Manufacturing Technology. This total, as reported by …

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Monthly Wholesale Trade: Sales and Inventories for January 2007

Economic Trends, Research & Analytics, Subscriber Only /

Sales. January 2007 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 $333.4 billion, down 0.9 percent from the revised December level, but were up 6.2 percent from the January 2006 level. The December preliminary estimate was revised downward $0.5 billion or 0.2 percent. January sales of durable goods were virtually unchanged from last month, but were up 5.7 percent from a year ago. January sales of nondurable goods were down 1.8 percent from last month, but were up 6.7 percent from last year.

Inventories. Total inventories of merchant wholesalers, except manufacturers’sales branches and offices, after …

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Technology Case Study: Graybar’s Lessons Learned

Companies, Electrical, Subscriber Only, Technology, Top Distributor Sectors /


Electrical distributor Graybar rolled out its new IT system in 2003-2004; the three-year implementation was anything but easy for the $5 billion company. But CFO Beatty D’Alessandro, who oversaw the implementation, says distributors can mitigate the risks inherent with such a transition. Here’s how.


Most distributors who are implementing or even considering switching to a new business system may place too much worry on whether the technology will work and what it will cost but not enough on other risks inherent with the transition.

The fact of the matter is if you’re with a name-brand software company, the technology is going to work. This is not splitting the atom or curing cancer -we’re talking about billing material, and shipping material, and …

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