Fastenal to Acquire Regional Distributor
04 March 2017 - 5:00AM
Fastenal Company (Nasdaq:FAST) announced today it has signed an
agreement to acquire certain assets of industrial and fastener
supply distributor Manufacturer’s Supply Company (Mansco).
The company is headquartered in Hudsonville, Michigan and has
additional facilities in Madison, Alabama and McAllen, Texas.
The agreement includes several conditions to close, and we expect
to close by the end of March.
"From our first discussions, we were impressed
with the Mansco team,” said Dan Florness, President and CEO of
Fastenal. “It has built a successful business in a
challenging fastener distribution market through a focus on
customers and a ‘can-do’ approach. This speaks to the company’s
ability to execute and illustrates how well Mansco will fit with
our own “growth through customer service” culture. We look
forward to welcoming Mansco to the Fastenal family. Our
complimentary capabilities make both businesses stronger.”
"I am extremely pleased about the opportunity
for the business and our employees to move forward with Fastenal,"
added Jim Mol, President and owner of Mansco. “Fastenal
brings an enormous supply capability and cost saving technologies
to our customers. This combination will help us grow and
better serve our customers, while maintaining the excellent quality
and service our customers have come to expect."
Mol has operated the business for the past
twenty-five years. The company focuses on fastener products,
with a particularly strong market position with commercial
furniture OEMs. As such, this acquisition gives Fastenal a
presence in a market where it has not meaningfully contributed in
the past, while providing Mansco with additional tools with which
to service its customer base.
Mansco generated approximately $50 million of
revenue in 2016, largely from its flagship Michigan location
although recent successes with its customers are generating more
sales related to its two other facilities. The company is
profitable and the transaction should be accretive in the first
twelve months, though it should not be material to earnings per
share.
Fastenal sells different types of industrial and
construction supplies in the following product categories: threaded
fasteners and miscellaneous supplies; tools; metal cutting tool
blades and abrasives; fluid transfer components and accessories for
hydraulic and pneumatic power; material handling; storage and
packaging products; janitorial, chemical and paint products;
electrical supplies; welding supplies; safety supplies; metals,
alloys and materials; and office supplies.
Fastenal operates approximately 2,500 stores
located primarily in North America with additional locations in
Asia, Europe, Central and South America, and Africa. The Company
operates 14 distribution centers in North America; eleven in the
United States - Minnesota, Indiana, Ohio, Pennsylvania, Texas,
Georgia, Washington, California, Utah, North Carolina, and Kansas,
and three outside the United States - Ontario, Canada; Alberta,
Canada; and Nuevo Leon, Mexico.
This press release contains statements regarding
Fastenal's expectations about the strategic fit and expected
revenues of Mansco and the anticipated closing of the transaction
that are not historical in nature and are intended to be, and are
hereby identified as, 'forward looking statements' as defined by
the Private Securities Litigation Reform Act of 1995. Factors that
could cause our actual results to differ from those discussed in
the forward-looking statements include, but are not limited to, the
failure of certain conditions to closing to be satisfied, economic
downturns, weakness in the industry, and changes in customer needs.
A discussion of other risks and uncertainties is included in
Fastenal's filings with the SEC, including our most recent annual
and quarterly reports.
Additional information regarding Fastenal is
available on the Fastenal Company website at www.fastenal.com.
FAST-G
CONTACT:
Holden Lewis
EVP and CFO
507.453.8220
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