September 10 2011 Archives - Modern Distribution Management

September 10 2011

Volume 41, Issue 17 - The Growing Role of Master Distributors

Volume:

41

Issue:

17

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Features
4117Cover

This is the pdf of this issue of Modern Distribution Management. Apply the full $34.95 pay-per-view cost of this issue toward an annual subscription, which includes two issues a month plus access to more than eight years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to subscribe. Subscribers log-in to download this issue.

Over the past three years, the role of master distributors – distributors that only sell to other distributors – has grown more critical as distributors have pared back on inventory and investment in logistics. Distributors have used master distributors to grow product offerings and build an online presence, among other benefits. This article looks at the drivers of growth for master distributors and the challenges they face in the market.

The role of master distributors has grown increasingly important over the past couple years due to the recession and subsequent economic uncertainty.

“The recession forced everyone to take a serious look at …

This is the second article in MDM’s Emerging Technology Series. This article examines the growing interest in technologies that help distributors optimize their pricing practices.

Full Emerging Technologies Series is available here.

Using technology to improve pricing is slowly – but surely – gaining a strong foothold in the distribution industry. In fact, some experts have gone so far as to say that using technology to optimize pricing may no longer be a differentiator for distributors in five years. Instead, what’s called strategic pricing may …

The M&A market in distribution continues to be strong. In the latest survey MDM does with Robert W. Baird & Co., several respondents noted that the market was “vibrant” and that the quality of companies up for acquisition were attractive. Some respondents said they were encouraged that …

McGladrey recently released the results of its Summer 2011 Manufacturer & Distribution Monitor survey. The survey looked at trends in productivity, trends, pricing and green practices.

While executives are maintaining a positive outlook for their own companies, their perception of the overall economy is less positive, according to the Summer 2011 Manufacturing & Distribution Monitor released by McGladrey. Productivity increases and improved expectations for sales have more companies looking to increase …

In August, Grainger acquired Fabory Group, a European distributor of fasteners and related MRO products based in the Netherlands, for $344 million. Fabory’s sales are expected to reach €250 million (US$357 million) in 2011, primarily from sales in Europe. Court Carruthers, president of Grainger International, recently spoke with MDM about the acquisition and how Grainger approaches the integration of international acquisitions.

MDM: Why did Grainger decide to buy Fabory?

Court Carruthers: We’ve had a relationship with Fabory for several years and …

This table highlights key financial metrics and trading multiples for 26 publicly traded distributors in the industrial and building products industries up to Aug. 23, 2011. Download this data below. Also find graphic illustrating median EBIDTA multiples for the same distribution companies.

These materials, prepared by Robert W. Baird & Co. for MDM, are for informational purposes only.

PDF Download
4117Cover

This is the pdf of this issue of Modern Distribution Management. Apply the full $34.95 pay-per-view cost of this issue toward an annual subscription, which includes two issues a month plus access to more than eight years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to subscribe. Subscribers log-in to download this issue.

Over the past three years, the role of master distributors – distributors that only sell to other distributors – has grown more critical as distributors have pared back on inventory and investment in logistics. Distributors have used master distributors to grow product offerings and build an online presence, among other benefits. This article looks at the drivers of growth for master distributors and the challenges they face in the market.

The role of master distributors has grown increasingly important over the past couple years due to the recession and subsequent economic uncertainty.

“The recession forced everyone to take a serious look at …

This is the second article in MDM’s Emerging Technology Series. This article examines the growing interest in technologies that help distributors optimize their pricing practices.

Full Emerging Technologies Series is available here.

Using technology to improve pricing is slowly – but surely – gaining a strong foothold in the distribution industry. In fact, some experts have gone so far as to say that using technology to optimize pricing may no longer be a differentiator for distributors in five years. Instead, what’s called strategic pricing may …

The M&A market in distribution continues to be strong. In the latest survey MDM does with Robert W. Baird & Co., several respondents noted that the market was “vibrant” and that the quality of companies up for acquisition were attractive. Some respondents said they were encouraged that …

McGladrey recently released the results of its Summer 2011 Manufacturer & Distribution Monitor survey. The survey looked at trends in productivity, trends, pricing and green practices.

While executives are maintaining a positive outlook for their own companies, their perception of the overall economy is less positive, according to the Summer 2011 Manufacturing & Distribution Monitor released by McGladrey. Productivity increases and improved expectations for sales have more companies looking to increase …

In August, Grainger acquired Fabory Group, a European distributor of fasteners and related MRO products based in the Netherlands, for $344 million. Fabory’s sales are expected to reach €250 million (US$357 million) in 2011, primarily from sales in Europe. Court Carruthers, president of Grainger International, recently spoke with MDM about the acquisition and how Grainger approaches the integration of international acquisitions.

MDM: Why did Grainger decide to buy Fabory?

Court Carruthers: We’ve had a relationship with Fabory for several years and …

This table highlights key financial metrics and trading multiples for 26 publicly traded distributors in the industrial and building products industries up to Aug. 23, 2011. Download this data below. Also find graphic illustrating median EBIDTA multiples for the same distribution companies.

These materials, prepared by Robert W. Baird & Co. for MDM, are for informational purposes only.

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