2007 - Page 16 of 47 - Modern Distribution Management

2007

HD Supply: The ‘White-Knuckle Deal’

BusinessWeek just ran a couple of articles on Clayton, Dubilier & Rice, the private equity firm that joined with Bain Capital and the Carlyle Group to buy HD Supply. Due to a tightening in the credit markets, the trio will pay $8.5 billion instead of the original $10.3 billion price for the Home Depot wholesale unit.
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The first BW article was aptly titled, Private Equity’s White-Knuckle Deal,” and the other focuses on CD & R’s chairman Joseph L. Rice III, 75, who discusses how his firm years ago fell into the trap of buying into industries it did not understand and “embraced debt too enthusiastically.” (Read article)
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“White-Knuckle Deal” recounts in …

HD Supply: The ‘White-Knuckle Deal’ Read More »

Air Liquide Buys Team One Technologies

Air Liquide, Houston, TX, has acquired Team One Technologies Inc., an independent producer and distributor of medical and specialty gases in Romeoville, IL.
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Air Liquide Healthcare America will own and operate the medical and specialty gas facility to support its strong growth initiatives in the Midwest medical gas market.
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The newly acquired facility will also supply Air Liquide’s non-medical packaged and specialty gas business, with an additional geographic base for direct and distributor sales.
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The acquisition strengthens Air Liquide Healthcare America’s position as a major supplier in the greater Chicago area, a region that represents about 6 percent of the overall U.S. medical gases …

Air Liquide Buys Team One Technologies Read More »

Construction Spending Down in July

Construction spending during July 2007 was estimated at a seasonally adjusted annual rate of $1,169.1 billion, 0.4 percent below the revised June estimate of $1,173.2 billion. &nbsp ; The July figure is 2.0 percent below the July 2006 estimate of $1,192.9 billion.
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During the first 7 months of this year, construction spending amounted to $657.7 billion, 3.4 percent below the $680.9 billion for the same period in 2006.
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Private Construction
Spending on private construction was at a seasonally adjusted annual rate of $880.1 billion, 0.7 percent below the revised June estimate of $886.3 billion. Residential construction was at a seasonally adjusted annual rate of $534.0 billion in July, 1.4 percent below the revised June estimate of $541.8 billion. …

Construction Spending Down in July Read More »

Chase Expands Coatings Line

Chase Corporation, Bridgewater, MA, a global manufacturer of specialty tapes, laminates, sealants and coatings, announced its subsidiary, Chase Protective Coatings Ltd, has acquired Long Products of Rye, East Sussex, England.
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Long Products is a manufacturer of waterproofing and corrosion protection systems for oil, gas and water pipelines and has been a major supplier to Europe, the Middle East and Southeast Asia.
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This acquisition joins Chase’s North American based Tapecoat and Royston brands to broaden the protective coatings product line and better address increasing global demand. Long Products’tapes, epoxies and cathodic protection accessory products are used internationally on new pipeline projects as well as for regular pipeline maintenance.
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Chase Expands Coatings Line Read More »

MDM September 10, 2007

This is the pdf of this issue of Modern Distribution Management. Apply the full $24.95 pay-per-view cost toward an annual subscription (within 30 days of purchase), which includes two issues a month plus access to more than six years of online archives and market data. Call 1-888-742-5060 or email [email protected] to …

MDM September 10, 2007 Read More »

Premier Farnell 2Q Growth at 3%

London-based global electronics distributor Premier Farnell saw second-quarter sales growth of 3%, despite a more challenging North American market.

Revenue was 178.9 pounds (US$363.3 million) in the second quarter and 362.5 million pounds (US$736M) in the first half.

Total earnings per share were up 13% in the first half.

We continue to make good progress with the rigorous implementation of our business strategy and are especially pleased with the 30% increase in Web sales in the quarter and our success in winning major new franchises,” CEO Harriet Green said.

“While market conditions in North America in the second quarter were rather more challenging than in the first quarter, we delivered growth across all divisions with double-digit growth in …

Premier Farnell 2Q Growth at 3% Read More »

Ferguson Makes Two Acquisitions

Ferguson has acquired Western Air Systems & Controls Inc., an exclusive Trane HVAC distributor for the states of California and Nevada with three facilities. In the year ended Dec. 31, 2006, Western Air had revenue of $59.6 million.
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Ferguson has also acquired Davidson Pipe Company Inc., a pipes, valves and fittings distributor in the New York metropolitan market. In the year ended Sept. 30, 2006, Davidson had revenue of $125.8 million.
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Ferguson is a company of Wolseley plc, a global distributor of plumbing and heating products as well as building materials. Wolseley announced five bolt-on acquisitions this month, including one by Stock Building Supply and two in Europe. These acquisitions are expected to add 110 million pounds&nbsp ; to total …

Ferguson Makes Two Acquisitions Read More »

Stock Building Supply Buys ProSource

Stock Building Supply has acquired ProSource Building Supply Ltd, Houston, TX, a construction services business supplying commercial doors, trim, hardwood, related specialty products and installation services.
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In the year ended Dec. 31, 2006, ProSource had revenue of $17.2 million. The acquisition is in line with Stock’s goal of expanding in the commercial and industrial markets.
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Stock Building Supply is a company of Wolseley plc, a global distributor of plumbing and heating products as well as building materials. Wolseley announced five bolt-on acquisitions this month, including two by Ferguson and two in Europe. These acquisitions are expected to add 110 million pounds to total …

Stock Building Supply Buys ProSource Read More »

U.S. Market Analysis: Hoists

The industrial product group listed here – Hoists – represented a market in 2006 of $495.3 million, according to estimates by Industrial Market Information, Minneapolis.

These charts show the top ten industries, by SIC code, consuming these products; and the 2006 end-user consumption of these groups sorted by the nine government market …

U.S. Market Analysis: Hoists Read More »

Machine Tool Consumption Up 5.3% YTD

July U.S. manufacturing technology consumption totaled $271.37 million, according to AMT – The Association for Manufacturing Technology and AMTDA, the American Machine Tool Distributors’&nbsp ; Association. This total, as reported by companies participating in the USMTC program, was down 22.0% from June, and down 9.5% from the total of $300.01 million reported for July 2006. With a year-to-date total of $2,254.79 million, 2007 was up 5.3% compared with 2006.
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These numbers and all data in this report are based on the totals of actual data reported by companies participating in the USMTC program.
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Typically July and August produce fewer orders relative to other months during the year as a result of the reduction of hours worked and partial plant closings,” said …

Machine Tool Consumption Up 5.3% YTD Read More »

PetroLiance Acquires AV Lubricants

PetroLiance LLC, formed last year through the consolidation of four of the nation’s largest ExxonMobil distributors, has completed its first acquisition. The company has purchased Columbus-based AV Lubricants Inc.
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AV Lubricants is a provider of lubricants to the aviation industry and to mining operations in Ohio, Kentucky and neighboring states.
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PetroLiance has major facilities in Columbus, OH, the headquarters of AV Lubricants. &nbsp ; PetroLiance was formed in 2006 through the consolidation of Boncosky Oil Company of Chicago, IL, Commercial Ullman Lubricants Company of Ohio, Lubricant Technologies LLC of North Carolina, and Young Oil Company Inc. in south Florida. The company offers ExxonMobil products along with a growing array of ancillary products and …

PetroLiance Acquires AV Lubricants Read More »

Weighing In on the Economy

To gauge the effect of economic trends on distributors, MDM tapped two economists to gain a snapshot of current economic conditions. MDM spoke with Alan Beaulieu of the Institute for Trend Research (603-226-9331, www.ecotrends.org), and Bill Dunkelberg of the National Federation of Independent Businesses.
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What is the state of the economy?
Alan Beaulieu: The U.S. economy is in better shape than most people think it is. We have largely absorbed a significant blow in the form of the downturn in the housing market.

It is not hard to imagine that in past decades this would have sent us into a recession, but this time we have taken the hit” and are continuing to grow, albeit at a noticeably slower pace. To put this in context, the decline in …

Weighing In on the Economy Read More »

Transform a Downturn into a Strategic Opportunity

During an economic slowdown, a siege mentality” is understandable but not always productive, says Steve Deist of Indian River Consulting Group. Though many industries are still seeing growth, some -including the housing industry -are struggling. This is a timely excerpt from a piece by Deist on how to turn a downturn into a strategic opportunity.
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No. 1 Focus on the Other Guys
Customers, employees, competitors and suppliers are facing many of the same challenges you are. Many are probably playing defense and are reluctant to make long-term commitments. They likely have reduced expectations of performance in profitability and sales growth.
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Commit to sustained and improved customer service. …

Transform a Downturn into a Strategic Opportunity Read More »

NAW Takes Action on Liability Case

Distributors may be better protected from strict liability actions if a Supreme Court case in Ohio is overturned.

The National Association of Wholesaler-Distributors is one of nine organizations that filed a friend of the court” brief in the Supreme Court of Ohio in a case focused on the retroactive application of the doctrine of strict liability in product liability actions brought against non-manufacturer product sellers, including wholesalers, distributors and retailers.

Strict liability is based on the condition of a manufacturer’s product rather than the conduct of the defendant.

According to NAW President Dirk Van Dongen, the association views DiCenzo as a “major, even seminal case that carries with it profound legal and economic ramifications for …

NAW Takes Action on Liability Case Read More »

Labor Productivity Improves in Wholesale Sector 2005-2006

Labor productivity -defined as output per hour -increased 4.3 percent in wholesale trade in 2006, according to the U.S. Bureau of Labor Statistics. From 1987 to 2006, labor productivity increased at the following average annual rate: 3.5 percent.
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2005-2006 Change in Wholesale Trade
Output per hour grew 4.3 percent, as output increased 6.6 percent and hours advanced 2.2 percent.&nbsp ; Labor productivity rose 5.1 percent in durable merchant wholesalers and increased 2.7 percent in nondurable merchant wholesalers.

Labor productivity rose in 15 of the 19 detailed wholesale trade industries in 2006, as output grew in 17 industries while …

Labor Productivity Improves in Wholesale Sector 2005-2006 Read More »

News Digest 3717

Airgas, Inc., Radnor, PA, has acquired Dantack Corp., a Grand Prairie, TX-based safety distributor with branches in Columbus, OH, and Richmond, VA. The business generated more than $18 million in sales in 2006. Airgas’safety distribution business had $438 million in sales in fiscal 2007 through telesales and field-based safety specialists within its regional companies. More

The Home Depot has completed the sale of HD Supply to a trio of private equity firms –Bain Capital, Clayton Dubilier & Rice, and Carlyle Group. As announced earlier, the terms were as follows: Purchase price of $8.5 billion, The Home Depot to own a 12.5 percent equity interest for $325 million, …

News Digest 3717 Read More »

Hagemeyer NA Releases Industrial Catalog

Hagemeyer NA has released its 2007-2008 Industrial Products catalog. The 900-page book features 28,000 items.
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This catalog represents an important part of Hagemeyer’s marketing and growth plans and provides our valued customers with a broad array of high-quality products to meet their everyday business needs,” says Brad Pulver, vice president, Product Strategy. “The catalog also showcases several of our value-added services that set us apart from our competition, including; Web-based ordering at www.hagemeyerdirect.com, technical services, vending solutions, inventory management solutions, order automation tools and storeroom management capabilities.
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The catalog is organized in the following product categories:&nbsp ;

Hagemeyer NA Releases Industrial Catalog Read More »

Commentary: Economic Sky Still in Place

We are at a point again in the business cycle where the national media hold a powerful tool and heavy responsibility when it comes to accurately reporting on economic trends. The danger is that one-line headlines and sound bites about recession can spook U.S. consumers into their shells and create the proverbial self-fulfilling prophecy.

The first three articles in this issue offer a few different viewpoints from economists on the state of the economy, the impact of the credit crunch,” and what our readers might consider based on the current climate. We do not predict the falling of the sky. And as economist Alan Beaulieu notes in the cover story: “The U.S. economy is in better shape than most people think it is.”

That’s not to discount the very tough conditions …

Commentary: Economic Sky Still in Place Read More »

MDM Inflation Index: July 2007

Modern Distribution Management’s July Inflation Index, which measures a cross-section of industrial supplies, was up 0.23% from the previous month, and up 3.16% from July 2006.

Summary of&nbsp ; MDM Inflation Index for the past 12 months:
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July 2007 Index 272.4
June 2007 Index 271.7
May 2007 Index 271.2
April 2007 Index 270.8
March 2007 Index 269.6
February 2007 Index 269.4
January 2007 Index 268.7
December 2006 Index&nbsp ; 267.1
November 2006 Index 266.5
October 2006 Index 265.9
September 2006 Index 265.6
August 2006 Index 265.2
July 2006 Index 264.0

Please click below to view a print-ready pdf of the&nbsp ; MDM Inflation Index for July 2007, listing the ten individual product categories …

MDM Inflation Index: July 2007 Read More »

Monthly Wholesale Trade: July 2007

July 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 $359.0 billion, up 0.8 percent from the revised June level and were up 7.2 percent from the July 2006 level. The June preliminary estimate was revised downward $0.7 billion or 0.2 percent.
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July sales of durable goods were virtually unchanged from last month and were up 4.3 percent from a year ago. Compared to last month, sales of lumber and other construction materials were down 3.2 percent. July sales of nondurable goods were up 0.1 percent from last month and were up 10.0 percent from last year. Sales of drugs and druggists’ sundries were up 1.4 percent from last month.
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Monthly Wholesale Trade: July 2007 Read More »

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