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At the May Industrial Supply Association annual meeting in Las Vegas, industry consultant William McCleave presented the results of a survey of ISA members, The Future Impact of Size and Value Content on Industrial Distribution.” This article outlines one of the key findings of that report: the importance of value-add in distribution.
How is value-add being defined in distribution today? As noted in these pages before, the term has been used so heavily that it risks losing meaning. At the same time, most wholesale distribution executives agree that market battles ahead will center on how well their companies define and sell value.
In a recent survey of Industrial Supply Association members by consultant William McCleave, most respondents felt that value-add …
The Value of Value-Add Read More »
Join Brent Grover on Thursday, June 21, 2007 for a 90-minute audio conference, 1 p.m. Eastern.
What’s your exit strategy? No matter when or how you plan to leave your business, there are key issues to address now to ensure a smooth transition. Whether you plan to sell or pass the torch to your son, daughter or key employee, this 90-minute audio conference presents the options to consider and fundamental decisions you need to make to have the right pieces in place at the right time.
Join Brent Grover as he shares his unique experience as the former CEO of the paper distribution business his grandfather started, as well as the varied knowledge gained through his current consulting business focused on wholesale distribution …
New MDM Audio Conference: Succession Planning for Distributors Read More »
April 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 $351.9 billion, up 1.3 percent from the revised March level and were up 8.8 percent from the April 2006 level. The March preliminary estimate was revised upward $1.1 billion or 0.3 percent.
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April sales of durable goods were up 0.8 percent from last month and were up 7.8 percent (+/-2.0%) from a year ago. Compared to last month, sales of hardware, and plumbing and heating equipment and supplies were up 2.7 percent.
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April sales of nondurable goods were up 1.8 percent from last month and were up 9.7 percent from last year. Compared to last month, sales of …
April Wholesale Revenues Rise 8.8% Read More »
Private equity firm Audax Group has acquired industrial rubber distributor Lewis Goetz and Company Inc., Pittsburgh, PA. Lewis-Goetz operates from 48 locations throughout the U.S. and Canada.
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It sells industrial, hydraulic, and metal hose, conveyer belts, gaskets and seals, and related accessories and services.
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We are excited to have Audax Group as our partner,” said David R. Goetz, Lewis-Goetz CEO. “Their experience sourcing and integrating add-on acquisitions will be an important asset for us as we continue to grow our business.”
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Vetus Partners, featured in a recent MDM audio conference, advised Lewis-Goetz.
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Audax recently purchased UTEX Industries, Inc., Houston, TX, a manufacturer of complex gaskets and highly engineered …
Audax Group Buys Lewis-Goetz Read More »
Pro-Build Holdings, Denver, CO, supplier of building materials to professional contractors, has purchased The Dunn Corporation, a Daytona Beach, FL-based distributor of lumber, millwork, building products and Overhead Door Company systems in Central and East Coast Florida.
The Dunn Corporation is very excited about the opportunity to join the Pro-Build family of companies as we see substantial opportunities for our team members,” said Sam Dunn, president, and former chairman of the NLMBDA. “& hellip; Because the employees are stockholders through ESOP ownership, they will share in the proceeds of the sale just as family members. It has always been the feeling of Barry and I that our people are our most important asset.
Dunn Lumber employs more than 120 people …
Pro-Build Buys Florida-based Dunn Lumber Read More »
3M, St. Paul, MN, has acquired Diamond Productions Inc., Wayne, NJ, a manufacturer of superabrasive diamond and CBN wheels and tools for dimensioning and finishing hard-to-grind materials in metalworking, woodworking and stone fabrication markets.
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Diamond Productions Inc.,   ; brings industrial metalworking strengths as well as new applications for stone processing to 3M’s strong offering of grinding and finishing tools for the industrial and commercial markets.
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The combination of 3M and DPI expands the capabilities for dimensioning hard-to-grind materials to include stone, marble and concrete.
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The addition of DPI’s metal, resin and vitrified superabrasives enhances 3M’s cutting and grinding capabilities for such things as kitchen …
3M Buys Diamond Productions Inc. Read More »
UK-based Premier Farnell plc, global distributor of electronic MRO products and specialist services in Europe, North America and Asia, reported sales increased 4% in the first quarter ended April 29, 2007.
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The first quarter has seen progress against last year in revenue, operating profit and cash generation,” said Harriet Green, Group CEO. “We expect that the second quarter will continue to reflect the results of the investments we are making and will deliver further revenue growth with our focus on EDE, the Web and internationalizing our high service …
Premier Farnell Sales Up 4% in 1Q Read More »
JVA Partners has acquired Kennedy Manufacturing Company, Van Wert, OH. Kennedy manufactures industrial tool storage products and medical carts.
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In the first half of 2005, Kennedy had emerged from Chapter 11 bankruptcy protection. The 100-year-old manufacturer had been hit hard by a tough manufacturing economy, global competition and tighter requirements with its bankers. It also faced rising steel prices.
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JVA Partners is a strategic investment company that has acquired a number of manufacturing companies throughout the Midwest. One of its holdings, HMC Holdings LLC dba Homak, is also in the tool storage business.
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We are excited about the prospect of adding Kennedy Manufacturing to our family of companies,” said John Veleris JVA’s Chairman. …
JVA Partners Buys Kennedy Manufacturing Read More »
Applied Industrial Technologies, Cleveland, OH, distributor of bearings and related products, has combined its Applied Maintenance America and Fluid Power Connection catalogs, as well as added more than 10,000 new and expanded products. The catalog will be available in July 2007 and can be reserved online at www.applied.com/catalogrequest.
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Applied said it combined the two catalogs in response to requests from customers to provide a one-stop source for the MRO parts that Applied supplies. The 07/08 Applied Industrial Technologies Product Catalog offers nearly 40,000 parts from more than 100 suppliers, including 20,000 bearings and power transmission parts and almost 9,000 fluid power products.
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The new Applied catalog includes comprehensive product lines …
Applied Merges MRO, Fluid Power Catalogs Read More »
Dana Corporation, Toledo, OH, received approval from the U.S. Bankruptcy Court for the Southern District of New York to sell two businesses that make up its fluid products unit.
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Its fluid products hose and tubing business will be sold to Orhan Holding A.S., a Turkish industrial firm and joint-venture partner of Dana. Orhan will pay $85 million.
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Dana’s coupled products business will be sold to Coupled Products Acquisition LLC, a wholly owned subsidiary of Wanxiang (USA) Holdings Corporation.
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Dana expects to close the sale of both businesses by the end of July 2007.
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Dana is in 28 countries and reported 2006 sales of $8.5 billion, with more than half of this revenue derived from outside the U.S. …
Dana Corp. to Sell Fluid Products Businesses Read More »
Austin Hardware and Supply, Inc. has acquired JPC Specialties, a supplier of standard and specialty fasteners in Philadelphia, PA. The acquired firm will continue operations from its Philadelphia location under the name JPC Fasteners, an Austin Hardware Company.
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Mark Dudenhoeffer, president of Austin Hardware, said the acquisition broadens Austin’s product line; before the acquisition, the distributor was supplying fasteners on a limited basis. JPC makes us a complete fastener resource,” he said. Austin also plans to ramp up its vendor-managed bin-stocking programs with this acquisition.
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Austin Hardware is a supplier of specialty industrial and vehicular hardware. Primary industries served include truck body, trailer, specialty and recreational vehicle OEM …
Austin Hardware Acquires Fastener Distributor Read More »
Platinum Equity, Los Angeles, CA, has purchased Weyerhaeuser Company’s wholesale products distribution centers in Canada and established the distribution business as a standalone company named Broadleaf Logistics Company.
Broadleaf distributes a wide range of building materials, including engineered wood products, oriented strand board, panels, framing lumber, and plywood panels; appearance grade and other cedar products; and specialty products such as exterior siding, insulation, rebar, and roofing.
Headquartered in Vancouver, British Columbia, Broadleaf is Platinum’s first Canada-based business. Jacob Kotzubei, the Platinum Equity executive who led the acquisition, said the strategic plan for Broadleaf would focus not only on sustaining current operations, but …
Platinum Equity Buys Weyerhaeuser’s Wholesale Centers in Canada Read More »
Allied Building Products Corp., East Rutherford, NJ, has acquired roofing materials distributor Spartan Supply Co., Culver City, CA. Spartan will move to a new facility in West Los Angeles.
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The acquisition provides Allied access to a high-end, niche market. It will also fill in logistical gaps. On its Web site, Spartan says it specializes in high-end materials such as imported and domestic slates, specialty clay tiles and copper products, as well as standard roofing …
Allied Building Products Acquires Roofing Distributor Read More »
The Bossard Group, a global fastener distributor based in Switzerland, reported sales were up 6.7% in the first four months of 2007 compared with the same period a year ago.
The distributor saw broadly based growth in Europe but sales in the U.S. fell by 10.9%. Bossard reported it had expected this decline, which confirmed a decrease in production previously announced by its customers. Sales in Europe grew 18.5% in local currency. All regions reported double-digit growth.
Overall sales for the first four months were (Swiss franc) CHF 204.1 million (US$167.7 million). Sales in the U.S. were CHF 60.7 million (US$49.8 million). Sales in Europe were CHF 117.6 million (US$96.6 million), and in Asia were CHF 25.8 million (US$21.2 million).
Currency translations …
Bossard Sales Up 6.7% in First Four Months Read More »
Pactiv Corporation, Lake Forest, IL, has acquired Prairie Packaging, Inc., a manufacturer of disposable tableware products for $1 billion, or 7X EBITDA. Prairie’s 2007 sales are expected to be $500 million.
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Prairie manufactures a broad range of tableware and foodservice products, including drink cups, portion cups, containers, cutlery, plates, and bowls. The company operates five manufacturing facilities in the U.S.
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Pactiv is a supplier in the consumer and foodservice/food packaging markets. Pactiv had 2006 sales of $2.9 …
Pactiv Corp. Buys Prairie Packaging for $1B Read More »
Activant Solutions Inc. has acquired Silk Systems Inc., including its wholly-owned subsidiary Silk Dimensions Systems Inc., computer software provider for the Canadian home improvement, wholesale distribution and building materials industries.
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The acquisition expands Activant’s presence in the Canadian market while building on current technology and service offerings for customers across North America.
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Hardware and home improvement centers, lumber and building materials and wholesale distribution are all key growth markets for Activant and are part of our larger corporate strategy of supporting customers across North America, including Canada,” said Pervez Qureshi, CEO of Activant Solutions.
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Silk Systems offers a business management ERP …
Activant Buys Canadian Software Provider Read More »
R & M Manufacturing Co., LLC, St. Louis Park, MN, has acquired Die Products Company, a stamping and tooling company in Fridley, MN.
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R & M Manufacturing is a sheet metal fabricator, specializing in custom, short and medium run sheet metal parts.
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The acquisition of Die Products is a strategic investment that increases the services that R & M and Die Products can provide our customers,” R & M President Todd Dyste …
R& M Manufacturing Buys Die Products Co. Read More »
Construction spending during April 2007 was estimated at a seasonally adjusted annual rate of $1,190.0 billion, 0.1 percent (& plusmn; 1.3%) …
Year-to-Date, Construction Spending Down 2.5% Read More »
Praxair Distribution, Inc., a subsidiary of Praxair, Inc., Danbury, CT, has acquired Wilson Welding & Medical Gases of Warren, MI. Wilson is a distributor of industrial, medical, specialty gases and related equipment and supplies.
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Wilson operates a cylinder filling plant and retail store in Warren, retail stores in Macomb and Pontiac, and a beverage CO2 business in Flint, Michigan. The business generated sales of $20 million in 2006 and has 72 employees.
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Praxair, Inc. is a global industrial gases with 2006 sales of $8.3 billion. The company produces, sells and distributes atmospheric and process gases, and high-performance surface coatings. Praxair products, services and technologies bring productivity and environmental benefits to a wide variety of …
Praxair Acquires Wilson Welding Read More »
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