July 2008

Air Liquide Expands in Middle East

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

Paris-based Air Liquide has acquired Pure Helium, a supplier of liquid and gaseous helium, helium-based mixtures and argon, based in India.

Air Liquide Senior Executive Vice President Pierre Dufour says the move strengthens the company’s position in the Middle East and opens other opportunities for expansion in the region.

Air Liquide, an international supplier of industrial and medical gases and medical services, plans to invest US$1 billion in the Persian Gulf region over the next five …

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Steel Moves Leave Experts Scratching Their Heads

Free, Management, Metals Service Centers, Strategy, Subscriber Only, Top Distributor Sectors / Jenel Stelton-Holtmeier

On July 11, US Steel announced an increase of $40 per short ton on flat-rolled steel effective with September deliveries. In addition, AK Steel will be raising carbon steel prices by $50 per ton on September 1. These moves came just after analysts were starting to believe that U.S. prices may be hitting their peaks and preparing to level off.

It’s significant because it underscores the idea that Tom Balcerek, North American editor of Steel Business Briefing, expressed during my recent interview with him for our July 10 issue: A lot of experts are scratching their heads on where exactly this market will go in the next month or even the next year.

The one thing that is certain is that 2008 has been like no other year in the steel business. I asked each of the …

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More on Wolseley: Possible Job Cuts

Companies, Economic Trends, Free, Research & Analytics, Subscriber Only / Lindsay Young

UK-based Wolseley will report on its sales and profits this Wednesday, July 16. (Look for coverage on mdm.com that day.) Wolseley owns Stock Building Supply and Ferguson in North America.

Apparently, at that time building materials, plumbing and HVAC distributor Wolseley is also planning to announce more job cuts after already laying off thousands this year. According to at least two top British newspapers -the Financial Times and the Telegraph -the company will shed hundreds of jobs.” Of course, it’s not news that Wolseley, along with other distributors with exposure to residential markets in the U.S., is struggling and not yet on the road to recovery.

The news on Wolseley comes as the UK and other parts of Europe are reportedly seeing major weakness in their …

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Canada: Nonresidential Investment Up 0.8% in 2Q

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

Source: Statistics Canada

Rising construction prices contributed to a 0.9% increase in current dollars in investment in non-residential building construction in Canada in the second quarter of 2008.

Canadian investment reached $10.5 billion between April and June as the increase was led by spending on medical facilities and office buildings.

However, after taking into account higher construction prices, investment in non-residential construction declined 3.7% in 2002 constant dollars.

Investment increased in all three components from the first quarter. In the commercial component, it rose 0.8% to $6.5 billion. In the industrial component, it went up 1.6% …

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ThyssenKrupp Launches ThyssenKrupp Aerospace

Free, News, Subscriber Only, Top Distributor Sectors / MDM Staff

ThyssenKrupp Services has launched ThyssenKrupp Aerospace.

The new company incorporates ThyssenKrupp’s existing aerospace distribution and supply chain management businesses with Apollo Metals and Aviation Metals, which were acquired earlier this year, and will trade globally under the ThyssenKrupp Aerospace …

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May Machine Tool Consumption Up 17.2% Year-to-Date

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

May U.S. manufacturing technology consumption totaled $341.21 million, according to the American Machine Tool Distributors’Association and the Association For Manufacturing Technology. This total, as reported by companies participating in the USMTC program, was down 16.4% from April, but up 2.2% from the total of $333.80 million reported for May 2007. With a year-to-date total of $1,942.37 million, 2008 is up 17.2% compared with 2007.

These numbers and all data in this report are based on the totals of actual data reported by companies participating in the USMTC program.

The May machine tool consumption numbers again demonstrated continued strength and growth in many markets across the country, except in the automotive sector in the upper Midwest,”said Peter Borden, …

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Applied Industrial Agrees to Buy Fluid Power Resource Businesses for $169M

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

Applied Industrial Technologies, Cleveland, OH, has agreed to buy Fluid Power Resource, LLC, businesses.

The 19-location acquisition includes distributors Bay Advanced Technologies, Carolina Fluid Components, DTS Fluid Power, FluidTech, Hughes HiTech, Hydro Air, and Power Systems. The businesses together employ 455 people and had 2007 sales of $244 million.

The purchase price is $169 million in cash.

Each of the businesses will operate as a subsidiary of Applied and will maintain their current local identities. The companies will be led by Warren E. (Bud) Hoffner, who oversees Applied’s fluid power business unit. FPR companies distribute pumps, motors, valves, actuators, cylinders, manifolds, hose fittings, connectors, FRL’s, gear boxes, …

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RSC Buys American Equipment Rentals

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

RSC Equipment Rental, Inc., Scottsdale, AZ, the operating entity for RSC Holdings Inc., an equipment rental provider, has acquired American Equipment Rentals, Providence, RI.

Ned Graham, RSC’s senior vice president, Operations, said: The American business is a growth platform for us and its addition is consistent with our strategic initiative to grow.”

American is a provider of aerial equipment, forklifts and other rental equipment serving commercial construction contractors in Providence, RI, Woburn, MA, and New Britain, CT.

American has annual sales of about $19 million, of which nearly 90% are rental revenues.
Sellers were FST Equipment, LLC and AER Holding LLC.

RSC has a network of 468 rental locations across 38 states in the …

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Kennametal Taps New Chief for Metalworking Unit

Free, News, Subscriber Only, Top Distributor Sectors / MDM Staff

Kennametal Inc., Latrobe, PA, has tapped a new chief for its Metalworking Solutions Services Group. Paul DeMand will take the position of president for the unit, which comprises about 60% of Kennametal’s overall revenues.

Before joining Kennametal, DeMand was senior vice president and division head of the Industrial Products Group at Johnson Electric, Ltd., Hong Kong. Before holding that position, he was vice president, Electro-Mechanical at Solectron Corp. in …

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Illinois Tool Works Buys TRYMER

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

Illinois Tool Works Inc., Glenview, IL, has acquired the TRYMER polyisocyanurate (PIR) rigid foam business. The TRYMER plant is based in LaPorte, TX.

The agreement also includes a provision for Dow to exclusively supply ITW with extruded polystyrene (XPS) pipe insulation billets for the mechanical insulation market.

TRYMER will be a wholly owned business unit of ITW and part of the company’s industrial packaging group. TRYMER will maintain its brand name and operate as a separate business.

TRYMER is an ideal strategic fit in our growing global insulation business,” said Larry Keiner, vice president and general manager of ITW Insulation Systems. “The acquisition of TRYMER and the opportunity to supply XPS will broaden our mechanical insulation …

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Fastenal Sales Grow 16.3% in 2Q

Companies, Fasteners, Free, News, Subscriber Only, Top Distributor Sectors / MDM Staff

The Fastenal Company, Winona, MN, reported sales for second quarter ended June 30, 2008, were $604.2 million, up 16.3% over the prior-year period. Profit was up 26.4%.

Sales for the first six months, were $1.17 billion, an increase of 16% from the first six months of 2007.Profit was up 26.2%.

During the first six months, Fastenal opened 112 new stores, an increase of 5.2% since Dec. 31, 2007.

More details here. …

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Ashland Inc. Agrees to Buy Hercules in $3.3B Deal

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

Global chemical company Ashland Inc. has agreed to acquire Hercules Inc., Wilmington, DE, in a deal valued at $3.3 billion. The transaction, which would create a major, global specialty chemicals company, is expected to close by the end of 2008.

With sales in more than 100 countries, Ashland is a manufacturer of specialty chemicals, a distributor of chemicals and plastics, and a provider of automotive lubricants, car-care products and quick-lube services.

Hercules is a supplier in specialty additives and ingredients that modify the physical properties of water-based systems and is a supplier of specialty chemicals to the pulp and paper industry.

Upon the transaction’s close, Ashland will have pro forma combined revenue for the 12 months ended March …

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GE Likely to Spin Off Consumer & Industrial Businesses

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

GE announced it is continuing to explore options for its Consumer &Industrial businesses with a primary focus on spinning-off the entire unit, which includes Appliances, Lighting and Industrial, to existing GE shareholders. The company announced on May 16 that a spin-off was one possible outcome of the strategic review of its Appliances division.

As we explored our options for Appliances, it became clear that the fastest, most efficient step we could take in completing the transformation of our Industrial portfolio would be to focus on a possible spin-off of the entire unit,”GE CEO Jeff Immelt said.

GE is a diversified technology, media and financial services company with products and services ranging from aircraft engines, power generation, water processing and …

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Dow Chemical Co. Agrees to Buy Rohm and Haas for $18.8B

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

The Dow Chemical Co. has agreed to buy specialty materials and chemicals supplier Rohm and Haas Company, Philadelphia, PA, for $78 per share in cash or $18.8 billion. The agreement provides that Rohm and Haas will continue to do business under the Rohm and Haas name.

In addition, Dow will contribute a number of specialty chemicals business segments to the Rohm and Haas portfolio.

Rohm and Haas brings to Dow strengths in Coatings and Electronic Materials, according to Dow CEO Andrew N. Liveris. Dow will contribute complementary businesses to Rohm and Haas Company in areas such as coatings, biocides, and personal care products. As a result, annual revenue of Rohm and Haas will be about $13 billion, post-transaction.

Based in Philadelphia, PA, Rohm …

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Grainger’s Lab Safety Supply Acquires Highsmith

Companies, Finance, Free, Mergers & Acquisitions, News, Safety Products, Subscriber Only, Top Distributor Sectors / MDM Staff

Chicago-based Grainger subsidiary Lab Safety Supply, Inc., has acquired Highsmith Inc., Fort Atkinson, WI. Highsmith is a distributor in the library equipment, furniture and supplies market.

We are pleased to be adding Highsmith to our specialty catalog group,” said Larry Loizzo, president of Lab Safety Supply. “They have built a solid brand position in the library and school supplies market over the past 50 years; we intend to build upon it.”

The integration of Highsmith into LSS’s operations should be completed over the next six months. The acquisition is expected to add $20-30 million to Lab Safety Supply’s sales in 2008.

LSS provides safety and other products to more than 800,000 customers in North America. It reaches them through a variety of …

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Pressures in the Steel Market

Management, Metals Service Centers, Research & Analytics, Strategy, Subscriber Only, Top Distributor Sectors / Jenel Stelton-Holtmeier

Around the globe, spiking steel prices and tight supply are having an impact on both small and large manufacturers and distributors. The tough market is forcing executives to make tough decisions without driving off customers.

Steel continues to be in short supply in the U.S. for the third month in a row, according to the June Manufacturing Report on Business released by the Institute for Supply Management. What’s more, steel prices have gone up each of the last eight months, and have doubled in the last six.

And though rumors abound in the industry that prices will stabilize, there is little agreement on when that stabilization will take place or what it will entail.

The problem in the U.S. is that steel producers are facing competing …

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MDM Interview: Challenges, Opportunity in E-Commerce

Sales & Marketing, Subscriber Only, Technology, Top Distributor Sectors / MDM Staff

Recently, industry veteran Bill Snyder, vice president of channel development for Palatine, IL-based manufacturer Square D -Schneider Electric’s North American operating division -sat down with MDM to talk about the development of electronic data standards in electrical channels. Square D has been active in promoting standards in the electrical distribution channel and in pushing standards through its own supply chain to develop greater efficiencies and visibility with its partners.

MDM: You and Square D have been strong advocates of e-commerce and creating standards. How did that develop?

Bill Snyder: The way that got started was through our own internal efforts to automate our workflows. And then we started extending that to distributors. …

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Can This Sales Dog Hunt?

Human Resources in Wholesale Distribution, Operations, Sales & Marketing, Subscriber Only / Colleen Stanley

This article examines why a can't-fail sales hire sometimes does fail and how to make sure a new hire's past matches your company's structure and needs.

Have you ever been stumped by a bad hire? No, I am not talking about the professional interviewer that wooed the interviewing team or the resume that was fudged. I'm talking about a strong resume where past sales numbers achieved were real and industry sales experience was deep.

Why doesn't a new hire's true success in the past transition to success in a new position? The problem could be that success achieved in their past sales life isn't lining up with factors needed for success in the new position. Below are six areas to examine when determining whether past success can transition into a new sales …

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Monthly Wholesale Trade: May 2008

Economic Trends, Research & Analytics, Subscriber Only / MDM Staff

Sales. May 2008 sales of merchant wholesalers, except manufacturers’sales branches and offices, were $397.4 billion, up 1.6% from April and up 13.7% from May 2007, according to the U.S. Census Bureau. May sales of durable goods were down 0.2% from last month, but were up 7.6% from a year ago. Compared to last month, furniture and home furnishings were down 4%, while sales of metals and minerals, except petroleum were up 2.9%. Sales of nondurable goods were up 3.2% from last month and were up 19.2% from last year. Sales of petroleum and petroleum products were up 7.5% from last month.

Inventories. Total inventories of merchant wholesalers, except manufacturers’sales branches and offices, after adjustment for seasonal variations but not for price changes, were …

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MDM News Digest 3813

Free, Subscriber Only / MDM Staff

Paris-based electrical distributor Rexel completed the sale of parts of Hagemeyer to Sonepar ahead of schedule, completing the deal June 30. Rexel also sold its German business to Sonepar in exchange for all of Sonepar’s activities in Sweden. More
Stuart C. Irby Co., Jackson, MS, a subsidiary of Sonepar USA, has agreed to acquire Equity Utility Service Company, Marietta, GA. The acquisition will expand Irby’s footprint in Georgia. Equity is a distributor and manufacturers’agent offering products to electric utilities for their transmission and distribution requirements. More

Chandler, AZ-based Essco Wholesale Electric, …

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July 2008

Air Liquide Expands in Middle East

Steel Moves Leave Experts Scratching Their Heads

More on Wolseley: Possible Job Cuts

Canada: Nonresidential Investment Up 0.8% in 2Q

ThyssenKrupp Launches ThyssenKrupp Aerospace

May Machine Tool Consumption Up 17.2% Year-to-Date

Applied Industrial Agrees to Buy Fluid Power Resource Businesses for $169M

RSC Buys American Equipment Rentals

Kennametal Taps New Chief for Metalworking Unit

Illinois Tool Works Buys TRYMER

Fastenal Sales Grow 16.3% in 2Q

Ashland Inc. Agrees to Buy Hercules in $3.3B Deal

GE Likely to Spin Off Consumer & Industrial Businesses

Dow Chemical Co. Agrees to Buy Rohm and Haas for $18.8B

Grainger’s Lab Safety Supply Acquires Highsmith

Pressures in the Steel Market

MDM Interview: Challenges, Opportunity in E-Commerce

Can This Sales Dog Hunt?

Monthly Wholesale Trade: May 2008

MDM News Digest 3813

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