June 2007 - Page 2 of 4 - Modern Distribution Management

Log In

Search

June 2007

SKF Acquires Baker Instruments Co.

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

SKF has acquired Baker Instruments Company, Fort Collins, CO, a manufacturer of test and diagnostic instruments for electric motor assessment. Baker has sales of $11 million.
&nbsp ;
This move into electric motor diagnostics is important to our new Energy Efficiency solutions business, and is in line with the SKF Group’s move towards supporting our customers in their Sustainability efforts,” said Phil Knights, president, SKF Service Division.
&nbsp ;
Baker’s sales are mainly focused on the industrial motor users in the U.S.
&nbsp ;
SKF paid $14 million for the company. Baker will be part of SKF Reliability Systems within the Service …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

SKF Acquires Baker Instruments Co. Read More »

New Owners: HD Supply Will Maintain Acquisitive Strategy

Companies, Finance, Free, Mergers & Acquisitions, News, Subscriber Only /

HD Supply’s new owners said that it is premature to say whether they will divest any of the $12 billion distributor’s assets after taking full ownership, said David Novak, a partner at Clayton Dubilier & Rice, one of the three private equity firms that have agreed to buy the unit from The Home Depot Inc. for $10.3 billion.
&nbsp ;
Bain Capital LLC, Carlyle Group and CD & R are splitting the investment evenly, Novak said.
&nbsp ;
Though there are no immediate plans for HD Supply’s current assets, the new owners do plan to continue building the company through acquisitions. That we will certainly do,” Novak told MDM. “Local scale is very important for productivity and service levels.”
&nbsp ;
That means that HD Supply, with $12 billion in sales in 2006, will continue …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

New Owners: HD Supply Will Maintain Acquisitive Strategy Read More »

Schneider Enters Negotiations to Sell Unit to Eaton

Electrical, Free, News, Subscriber Only, Top Distributor Sectors /

Schneider Electric has entered into exclusive negotiations with diversified industrial manufacturer Eaton Corp. for the divestment of MGE UPS Systems. The expected move is to fulfill a commitment to the European Commission following the acquisition of American Power Conversion.
&nbsp ;
Eaton is offering 425 million euros (US$569 million) for the business, which had revenues of 156 million euros (US$209 million) in 2006.
&nbsp ;
MGE UPS Systems, a Schneider subsidiary, is a supplier of a full range of equipment: uninterruptible power supplies, static transfer switches, harmonic filters and advanced power management solutions. It has customers in more than 100 …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Schneider Enters Negotiations to Sell Unit to Eaton Read More »

VWR International, Inc. Acquires Denmark-based Distributor

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

VWR International, Inc., West Chester, PA, a supplier to the global research laboratory industry, has agreed to acquire Bie & Berntsen A-S, a Danish scientific laboratory supply distributor.
&nbsp ;
Bie & Berntsen is one of Denmark’s largest suppliers of chemical and laboratory equipment with 90 employees, all in Denmark. The company has annual revenues of US$27 million.
&nbsp ;
Manuel Brocke-Benz, VWR senior vice president and managing director of European operations, said: The combination of VWR International and Bie & Berntsen is a perfect fit. VWR’s expertise in chemicals, consumables and life science products, combined with Bie & Berntsen’s emphasis on instruments, equipment and technical service, will enhance our product and service offerings to our customers and …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

VWR International, Inc. Acquires Denmark-based Distributor Read More »

Home Depot: Selling Supply Not an Easy Decision

Companies, Finance, Free, Mergers & Acquisitions, News, Subscriber Only /

Home Depot CEO Frank Blake said Wednesday that selling HD Supply in pieces would have been&nbsp ; time-consuming and&nbsp ; distracting, with an added cost of separating the businesses. An IPO would have resulted in a multiple discount relative to the sale of the entire business.
&nbsp ;
This was not an easy decision,” Blake said about the announcement Tuesday that Home Depot would sell its $12 billion wholesale division in its entirety for $10.3 billion to a group of three private equity firms. “(HD Supply chief) Joe DeAngelo and his team have built a world-class operation over the last few years. We gave careful consideration to a number of options, including holding onto the business.”
&nbsp ;
The three private equity firms buying HD Supply for roughly 10X-12X EBITDA are …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Home Depot: Selling Supply Not an Easy Decision Read More »

Reliance Steel Agrees to Buy Clayton Metals

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

Reliance Steel & Aluminum Co., Los Angeles, CA, has agreed to acquire Clayton Metals, Inc., Wood Dale, IL.
&nbsp ;
Clayton Metals specializes primarily in the processing and distribution of aluminum, stainless steel and red metal flat-rolled products, custom extrusions and aluminum circles through its metals service center locations in Wood Dale, IL; Cerritos, CA; High Point, NC and Parsippany, NJ.
&nbsp ;
Clayton Metal’s sales for the 12 months ended Dec. 31, 2006, were about $123 million. Current management is expected to remain in place.
&nbsp ;
Reliance Steel & Aluminum Co. is one of the largest metals service center companies in the U.S. Through a network of more than 180 locations in 37 states and Belgium, Canada, China and South Korea, the company …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Reliance Steel Agrees to Buy Clayton Metals Read More »

Takeaways from the $10B HD Supply Deal

Companies, Finance, Free, Mergers & Acquisitions, Subscriber Only /

Home Depot’s announcement that it is selling its wholesale division HD Supply for $10.3 billion to a trio of private equity firms -Bain Capital, Carlyle Group and Clayton Dubilier & Rice -is hardly a surprise, given the media coverage that led up to it. Though we don’t know all the details yet, there are already a few takeaways from the news:
&nbsp ;
1. As Grainger President and COO Jim Ryan said in mid-May (Grainger: Consolidation is Changing Marketplace), just because HD Supply has been been sold does not mean that it disappears as a player in the market. Still, HD Supply’s new owners will have the same …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Takeaways from the $10B HD Supply Deal Read More »

Housing Starts Down From April

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

The U.S. Census Bureau and the Department of Housing and Urban Development jointly announced the following new residential construction statistics for May 2007:
&nbsp ;
Building Permits
Privately-owned housing units authorized by building permits in May were at a seasonally adjusted annual rate of 1,501,000. This is 3% above the revised April rate of 1,457,000, but is 21.7% below the revised May 2006 estimate of 1,918,000.
&nbsp ;
Single-family authorizations in May were at a rate of 1,056,000; this is 1.8% below the April figure of 1,075,000. Authorizations of units in buildings with five units or more were at a rate of 379,000 in May.
&nbsp ;
Housing Starts
Privately-owned housing starts in May were at a seasonally adjusted annual rate of …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Housing Starts Down From April Read More »

Actuant Reports 22% Sales Increase

Free, News, Subscriber Only, Top Distributor Sectors /

Actuant Corporation, Milwaukee, WI, reported sales of $385 million for the third quarter ended May 31, 2007, up 22% over the same period a year ago. Net earnings were $29.6 million, about the same as a year ago.
&nbsp ;
The Industrial Segment generated double-digit core sales growth while the Actuation Systems Segment reported a year-over-year sales decline due to prior-year convertible top launches and the North American heavy duty truck pre-buy.
&nbsp ;
Sales for the nine months ended May 31, 2007 were $1.069 billion, or 22% higher than the $877 million in the comparable prior-year period. Excluding the impact of foreign currency rate changes and sales from acquired businesses, core sales increased …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Actuant Reports 22% Sales Increase Read More »

Home Depot to Sell HD Supply for $10.3B (updated)

Companies, Finance, Free, Mergers & Acquisitions, News, Subscriber Only /

The Home Depot, Atlanta, GA, has agreed to sell HD Supply to a team of private equity firms -Bain Capital LLC, Carlyle Group and Clayton Dubilier & Rice Inc. -for $10.3 billion, or roughly 10X-12X EBITDA.
&nbsp ;
The sale has been expected for weeks now, with a number of private equity firms rumored to have bid for the unit and several to have bowed out due to the down housing market -one of HD Supply’s key customer bases. HD Supply reported a decrease in organic sales in the recent quarter.
&nbsp ;
For that reason, the firms likely paid closer to 12X EBITDA, according to Jim Miller, principal and a managing director at investment banking firm Vetus Partners, Cleveland, OH. When they started this process, I believe they were touting approximately $1 billion of EBITDA …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Home Depot to Sell HD Supply for $10.3B (updated) Read More »

Eaton Buys Pulizzi Engineering

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

Diversified industrial manufacturer Eaton Corporation, Cleveland, OH, has acquired Pulizzi Engineering, a manufacturer of AC power distribution, AC power sequencing, redundant power and remote-reboot power management systems. Pulizzi Engineering had 2006 sales of $12 million and is in Santa Ana, CA.
&nbsp ;
Eaton Corporation is a diversified industrial manufacturer with 2006 sales of $12.4 billion. …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Eaton Buys Pulizzi Engineering Read More »

Timken Raises Prices on Bar, Tubing Products

Free, News, Power Transmission/Motion Control/Fluid Power, Sales & Marketing, Subscriber Only, Top Distributor Sectors /

The Timken Company, Canton, OH, has increased prices on double and triple thermal treated product, effective with shipments from Jan. 1, 2008. Bar product prices will increase by $50 a ton, and tubing product prices will go up by 10%.
&nbsp ;
Prices on as-rolled and single thermal treated products are not affected.
&nbsp ;
Timken is a $5 billion manufacturer operating in 26 countries and 25,000 …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Timken Raises Prices on Bar, Tubing Products Read More »

Profits for Electrical Distributors Rise Sharply in 2006

Economic Trends, Electrical, Free, News, Research & Analytics, Subscriber Only, Top Distributor Sectors /

Profits for electrical distributors in 2006 rose sharply to the highest level since 1993, reaching a median of 3.7%, according to the National Association of Electrical Distributors in its annual Performance Analysis Report (PAR).
&nbsp ;
The 3.7% figure represents the third consecutive year of sharp rises in profit margins, compared to medians of 2.9% in 2005, 2.1% in 2004, and 1.3% in 2004. Among a select group of high profit” distributors, the 2006 profit margin was almost twice as high at 7.3%.
&nbsp ;
Accompanying the increased profits were 2006 median sales increases of 17.4%, also the highest in a decade, and higher than the 11.1% increase recorded in 2005.
&nbsp ;
The report’s author, Dr. Al Bates of Profit Planning Group in Boulder, CO, cautioned that a …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Profits for Electrical Distributors Rise Sharply in 2006 Read More »

Canadian Manufacturing Shipments Down in April

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

Following a strong gain in March, Canadian manufacturing shipments edged down in April. Shipments decreased by&nbsp ; 0.6% to an estimated&nbsp ; $49.7&nbsp ; billion.
&nbsp ;
Excluding the motor vehicle parts and accessory industries, manufacturing shipments increased&nbsp ; 1% in April.
&nbsp ;
At&nbsp ; 1997&nbsp ; prices, shipments rose&nbsp ; 0.5% to&nbsp ; $45&nbsp ; billion. The constant dollar measurement takes price fluctuations into account. This was the fifth volume advance in six months.

Shipments declined in&nbsp ; 12&nbsp ; of&nbsp ; 21&nbsp ; manufacturing industries, which represent about&nbsp ; 51% of total output.
&nbsp ;
Shipments of non-durable goods increased for the third consecutive month in April, rising&nbsp ; 0.7% to&nbsp ; $22.5&nbsp …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Canadian Manufacturing Shipments Down in April Read More »

Report: HD Supply Final Bids Due Today

Companies, Finance, Free, Mergers & Acquisitions, News, Subscriber Only /

Bloomberg News has reported that two groups of private equity firms are prepared to submit final bids&nbsp ; of $10 billion&nbsp ; for Home Depot’s wholesale business, HD Supply. They are: Bain Capital LLC, Carlyle Group and Clayton Dubilier & Rice Inc.; and the pairing of&nbsp ; Thomas H. Lee Partners LP and CCMP Capital Advisors LLC.

Final bids are apparently due Friday. This report is similar to that reported by MDM&nbsp ; in early March.

Clayton Dubilier & Rice is the most recognizable among the teams in the distribution world, as it most recently invested in global electrical distributor Rexel Inc., and recently

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Report: HD Supply Final Bids Due Today Read More »

Industrial Production Unchanged in May

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

Industrial production was unchanged in May after a smaller revised increase of 0.4 percent in April. Output in the manufacturing sector edged up 0.1 percent in May, and mining output moved up 0.5 percent after declining 0.6 percent in April.
&nbsp ;
At 112.7 percent of its 2002 average, overall industrial production for May was 1.6 percent above its year-earlier level. The rate of capacity utilization for total industry fell 0.2 percentage point, to 81.3 percent, a level 0.3 percentage point above its 1972-2006 average.
&nbsp ;
Market Groups
The output of consumer goods decreased 0.2 percent in May after having risen 0.8 percent in April. The production of consumer durables edged down 0.1 percent in May, and the output of nondurables fell 0.3 percent. …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Industrial Production Unchanged in May Read More »

Wholesale Prices Rise 0.9% in May

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

The Producer Price Index for Finished Goods increased 0.9 percent in May, the Bureau of Labor Statistics of the U.S. Department of Labor reported. This advance followed a 0.7-percent rise in April and a 1.0-percent increase in March.

&nbsp ;
The index for finished goods excluding foods and energy moved up 0.2 percent in May after remaining unchanged in April. At the earlier stages of processing, prices received by producers of intermediate goods increased 1.1 percent in May after advancing 0.9 percent a month earlier, and the crude goods index turned up 2.0 percent following a decline of 1.5 percent in April.
&nbsp ;
Among finished goods, the index for consumer goods less foods and energy moved up 0.3 percent in May after inching down 0.1 percent in the previous …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Wholesale Prices Rise 0.9% in May Read More »

US Electrical Services Acquires Pioneer Electric Supply

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

US Electrical Services, LLC, Exton, PA, has acquired Pioneer Electric Supply, Beltsville, MD.

Pioneer has been supplying the needs of electrical contractors in greater Washington, DC for almost 16 years.&nbsp ; The company focuses primarily on large and small new construction and renovation projects.&nbsp ;
&nbsp ;
Pioneer will join four other area USESI-owned locations in the area.

By joining Electrical Wholesalers, we are able to compliment our strong project job capabilities with EW’s impressive warehousing and logistics capabilities.&nbsp ; Our customers and employees both benefit in a big way,” said Jeff Bacon, who along with all Pioneer employees, will remain with the business.

“Pioneer has a great team, a great history of strong customer …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

US Electrical Services Acquires Pioneer Electric Supply Read More »

Ingram Micro to Buy DBL Distributing Inc. for $96M

Finance, Free, Mergers & Acquisitions, News, Subscriber Only, Technology /

Technology distributor Ingram Micro Inc., Santa Ana, CA, has agreed to buy DBL Distributing Inc., Scottsdale, AZ, a distributor of consumer electronics accessories and related products with 2006 sales of nearly $300 million. The purchase price is $96 million.

The deal strengthens Ingram Micro’s position in a higher-margin niche of the consumer electronics market. Ingram Micro reported $31 billion in fiscal 2006 annual sales, and overall gross margin of 5.4%.

The Consumer Electronics Association estimates the consumer electronics market at $155 billion in 2007, with the accessories market at $11 billion. The industry is forecast to grow at 7% in 2007 following a 13% growth rate in 2006. An industry analyst told MDM the sub-category of consumer electronics accessories is …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Ingram Micro to Buy DBL Distributing Inc. for $96M Read More »

Fuel Costs Hit Distributors’ Bottom Lines

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

Fuel costs have hit a record high in the past month, staying above $3 a gallon, and that is causing no shortage of headaches in the distribution world. Past surveys done by MDM in collaboration with Channel Marketing Group, Raleigh, NC, indicate that many distributors simply pass on the increased fuel costs to customers. (Stem the Tide: Rising Fuel Costs, MDM, May 25, 2006)

Distributors have implemented a fuel surcharge or service change for deliveries, increased existing charges, or implemented a delivery charge on orders under a minimum-dollar value. Some are integrating the added cost into the product price.

In light of higher fuel costs, look at your current minimum order size. Should it be …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Fuel Costs Hit Distributors’ Bottom Lines Read More »

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!