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Airgas, Inc., Radnor, PA, U.S. distributor of industrial, medical, and specialty gases, welding, safety, and related products, reported sales increased 18% in its first quarter ended June 30, 2007. Sales were $915 million. Profit was up 34%.
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Acquisitions accounted for 11% of the first-quarter sales growth. Same-store sales increased 7%, with hardgoods up 6% and rent up 8%.
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We had an outstanding quarter. We continue to see good growth in non-residential construction and energy markets, and our strategic products are also performing well,” said Airgas CEO Peter …
Airgas Sales Rise 18% in 1Q Read More »
The Rockford Register Star has reported that Rockford Products, Rockford, IL, a manufacturer of cold-formed components, fasteners and other related products, will file for Ch 11 bankruptcy protection to keep it running until a buyer is found.
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A Ch. 11 bankruptcy allows the supplier to restructure its debt. In 1987 employees bought Rockford, which was then near-bankrupt, from Rexnord Inc., according to the paper. The company had $101 million in sales in 2006 and has been buried under debt” since the buyout.
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Rockford’s president told the Register Star that growing pension liabilities and the loss of key customers due to the slow automotive and housing markets sparked the decision to file …
Report: Rockford Products to File for Bankruptcy Read More »
Rockwell Automation, Inc., Milwaukee, WI, reported sales in the third quarter 2007 were $1.28 billion, up 9% from the same period in 2006. Profit was $164.2 million, compared with profit of $149 million last year.
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International sales increased 13%, excluding the effect of currency translation, with continued strength in Europe and Latin America, and improved performance in Asia Pacific and Canada. From an end-market perspective, sales growth in consumer industries outpaced the growth in resource-based industries.
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Rockwell expects a gradually expanding global industrial economy across most end markets through the remainder of the year in into fiscal 2008.
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The Control Products & Solutions segment sales were $698.1 million, an increase of 8%. …
Rockwell Automation Sales Grow 9% in 3Q Read More »
Praxair, Inc., Danbury, CT, reported sales in the second quarter 2007 increased to $2.3 billion, 12% above the same period a year ago. Sales growth was led by significant new business coming on-stream in the energy sector and new business in Asia and South America.
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Profit was up 18% to $291 million.
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In North America, second-quarter sales reached $1.3 billion, 12% above the prior-year quarter. Sales growth came primarily from higher sales to energy and general manufacturing markets, followed by electronics, healthcare and food and beverage.
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In Europe, sales in the quarter of $336 million grew 14%, and increased 6% excluding currency effects, as compared to the prior year. Underlying sales growth was broad-based across Europe and most major end …
Praxair Sales Grow 12% in 2Q Read More »
Kennametal Inc., Latrobe, PA, reported sales in fiscal 2007 were $2.4 billion, up 6% on an organic basis. The growth was partially offset by the net impact of acquisitions and divestitures of 7%.
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In 2007, Kennametal expanded its advanced materials segments with the acquisitions of the Sintec Group and the Camco Group, as well as Purity Metal Holdings Inc. Kennametal also added to its metalworking segments with Federal Signal Corporation’s cutting tool business, and completing the purchase of the company’s Spanish affiliate, Kenci S.A.
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Sales in the fourth quarter were $657 million, up 6% on an organic basis. In the fourth quarter, Metalworking Solutions & Services Group sales were higher by 15% overall, with 5% organic growth. Europe sales were up 9%; Asia …
Kennametal Sales Up 6% in 2007 Read More »
The last five years have been rough for distributors. Price pressure and intense competition have eliminated razor-thin margins, pushing many distributors to the brink. In addition, distributors have gotten into the habit of "giving away" value-added services in hope of winning deals, driving costs to historic heights. The solution: Revamp pricing based on the value you provide in each segment.
Many distributors believed that a resurgent economy would allow them to raise prices, but customers have been resistant. For most distributors, attempts at price increases are simply not taking hold.
Fortunately, there is a better, more profitable approach. The solution is to develop products and services that target unique segments with very specific offers. For most …
Get Paid for the Value You Add Read More »
These 16 select product groups provide a snapshot of inflation trends in industrial and construction channels. Second quarter 2006 is compared with second quarter 2007, and the first quarter 2006 with the second quarter 2007.
Metals & Metal Products
Plumbing Fixtures & Fittings
Fasteners
Hardware
Hand & Edge Tools
Chemicals & Allied Products
Adhesives & Sealants
Industrial Gases
Machinery & Equipment
Mechanical Power Transmission Equipment
Pumps, Compressors & Equipment
Electrical Machinery & Equipment
Ball and Roller Bearings
Metal Valves, Except Fluid Power
Industrial Material Handling Equipment
Fluid Power Equipment
Inflation by Commodity Group – Second Quarter 2007 Read More »
HVAC distributor Watsco, Inc., Coconut Grove, FL, reported sales decreased 7% to $471 million for the second quarter ended June 30, 2007.
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Revenues in the first six months declined 6% to $842 million. Profit for the first six months was $35.4 million, down from the $41.8 million recorded in the same period a year ago. New branches added $21 million of revenue during the first half of 2007.
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The Watsco network has expanded by 23 locations over the past 12 months, with a working capital investment related to these network expansion activities of $18 million as of June 30, 2007.
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Watsco recently announced it would acquire ACR Group Inc. , which had $240 million in sales in 2006. It has 54 locations in 10 …
Watsco Sales Down 6% in First Half Read More »
Simpson Strong-Tie Company Inc. has purchased Swan Secure Products Inc., Baltimore, MD, a manufacturer of stainless steel and other fasteners, for $43.5 million in cash. Swan Secure has locations throughout the U.S.
Simpson offers a line of wood-to-wood, wood-to-concrete, and wood-to-masonry connectors and fastening systems, and pre-fabricated shearwalls. Simpson also sells adhesives, mechanical anchors and powder actuated tools for concrete, masonry and …
Simpson Strong-Tie Buys Swan Secure Products Read More »
Platinum Equity has agreed to acquire Ryerson Inc., Chicago, IL, for $2 billion, which includes the assumption of debt. The price represents a 15% premium over Ryerson’s closing share price on Feb. 31, 2007, the day Ryerson announced it was considering strategic alternatives.
Ryerson is a distributor and processor of metals in North America, with 2006 revenues of $5.9 billion.
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With the transaction, Ryerson will go from a public to a private company.
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The merger agreement allows Ryerson to solicit additional proposals from other potential acquirers through Aug. 18, 2007.
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When Ryerson announced it was considering strategic alternatives for the company, 50 potential acquirers were identified and contacted, including foreign and domestic …
Platinum Equity to Buy Ryerson for $2B Read More »
Sumitomo Electric Carbide Inc., Mount Prospect, IL, has acquired cutting tool manufacturer Master Tool, Grand River, OH.
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Master Tool specializes in the development of custom tooling to machine critical features on engine blocks, cylinder heads, connecting rods, crank shafts, transmission cases and other automotives parts.
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Sumitomo manufactures metal cutting tool …
Sumitomo Electric Carbide Buys Master Tool Read More »
Anixter International Inc., Glenview, IL, distributor of communication products, electrical and electronic wire & cable and a distributor of fasteners and other small parts, reported sales of $1.51 billion in the second quarter ended June 29, 2007, up 22% from the year-ago period.
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Profit for the second quarter increased 31% to $64.6 million. Organic growth for the second quarter was 17%.
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For the six-month period ended June 29, 2007, sales were $2.84 billion, up 22%, and profit was $118.2 million, up 46%.
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Factors influencing overall sales included:
Anixter 2Q Organic Growth at 17% Read More »
Last week continued to be a blockbuster for M & A, with a strong showing by strategic players in the industrial and construction arenas: $400M Kendall Electric will buy $120M RodenLewis-Goetz has acquired Samson IndustrialSaint-Gobain will purchase Norandex.
A recent survey shows that a record $2.7 trillion was spent worldwide on mergers and acquisitions in the first half of 2007 (story). Total mergers in the first half are 67% …
M& A at a Record High Read More »
Shareholders of Myers Industries, Inc., Akron, OH, has approved the plan of merger, where Myers Holdings Corp., controlled by GS Capital Partners, would acquire the polymer product manufacturer and distributor of tools, equipment and supplies for $1.1 billion, including the assumption of debt.
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The company had sales of $780 million in 2006.
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GS Capital Partners is part of Goldman Sachs & Co.’s Principal Investment Area in the Merchant Banking …
Myers Industries Approves Acquisition by Private Equity Firm Read More »
Kendall Electric has purchased Roden Electric, an electrical distributor in the South Central U.S. with more than $120 million in annual sales.
Kendall Electric has more than $400 million in annual sales. It serves the Industrial, OEM, and Construction markets.
Roden will continue under the Roden brand name.
Investment banking firm Vetus Partners advised on the …
Kendall Electric Buys Roden Electric Read More »
Womack Machine Supply Company has acquired Birmingham, AL-based FPS Technologies.
FPS distributes many of the same product lines as Womack (Bosch Rexroth, Haskel, Hydac, Hydraforce) and operates a hydraulic repair center near
The combination of both companies allows Womack Machine Supply to expand distribution and service of fluid power and automation products into
Womack Machine Supply is an industrial distributor of hydraulic, …
Womack Machine Supply Buys FPS Technologies Read More »
WESCO International, Inc., Pittsburgh, PA, distributor of electrical MRO products and construction materials, reported sales of $1.5 billion for the second quarter 2007, an increase of 13.6% from the same period a year ago. Organic sales matched last year’s second quarter.
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Profit was $57.1 million, up slightly from the comparable 2006 quarter.
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Wesco also announced it has closed on the acquisition of Cascade Controls Corporation, a distributor of automation and controls in the Northeast with annual sales of $11 million. The acquisition allows Wesco to better serve its OEM customer base.
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Wesco reported that end-market activity was slower than expected during the quarter, slowing organic sales growth. The shortfall resulted primarily from …
Wesco Sales Increase 13.6% in 2Q Read More »
A record $2.7 trillion in first half 2007 worldwide mergers has led dealmakers to call the current M & A environment good or excellent (93%), according to a new survey by Association for Corporate Growth (ACG) and Thomson Financial.  ;
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However, there is growing concern among private equity professionals -who have played an increasingly important role in the merger boom -that the easy availability of debt financing which has helped fuel transactions will tighten, with 68% saying the debt markets will be worse in the next year.  ;
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The ACG/Thomson DealMakers Survey polled 1,011 investment bankers, private equity professionals, corporate development officers, as well as lawyers, accountants and other service providers involved in the deal …
M& A Survey: ‘It’s a Seller’s Market’ Read More »
Saint-Gobain has acquired the Norandex group from Owens Corning. Norandex group is split into two units: building materials distribution and vinyl siding manufacturing. The deal values Norandex at $343 million.
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Norandex had sales of $866 million in 2006.
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The Norandex brand, which will be integrated into Saint-Gobain’s Building Distribution sector, has a network of 153 specialized distribution branches dealing mainly in exterior building products (siding, doors, windows, etc.).
Norandex also has three plants used to manufacture vinyl siding, which are distributed by its own branches as well as by other independent distributors. The Norandex plants will be consolidated with the existing production facilities operated by the exterior building …
Saint-Gobain Acquires Norandex Read More »
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