MSC completes Barnes acquisition
MSC Industrial Direct announced that it has completed the acquisition of the North American distribution business of Barnes Group Inc. for $550 million.
With this acquisition, MSC extends its inventory management solutions and product offering in fasteners and other high gross margin consumable products, and establishes a significant presence in the Canadian market, the company said.
MSC financed the purchase of BDNA utilizing both existing cash and a new credit facility, which was closed simultaneously with the acquisition. The new credit facility includes a fully drawn $250 million term loan and a $400 million revolver, of which $120 million was drawn at closing to fund the acquisition.
"The acquisition of BDNA enables us to provide our mutual customers a deeper inventory management solution, a broader product offering and a larger geographic footprint to help them grow their businesses, increase productivity and reduce their MRO inventory costs," said Erik Gershwind, MSC president and chief executive officer. "The addition of so many talented associates from BDNA nearly doubles MSC's existing sales force and tremendously strengthens our future growth opportunities."
Headquartered in Cleveland, Ohio, BDNA is a distributor of fasteners and other high margin, low cost consumables with a broad distribution footprint throughout the U.S. and Canada. BDNA has a presence with customers across manufacturing, government, transportation and natural resources end-markets. BDNA specializes in lowering the total cost of their customers' inventory management through storeroom organization and vendor managed inventory. The Business services roughly 31,000 customers with nearly 1,400 associates, including over 800 field sales associates, and offers more than 55,000 SKU's of products. For calendar year 2012, BDNA generated sales of roughly $300 million.
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
