MSC Industrial Direct Co., Inc. Signs Definitive Agreement to Acquire Rutland Tool & Supply Co.
o Expands presence in West Coast with Addition of Local Market Leader
MELVILLE, N.Y., Nov. 9, 2010 -- MSC INDUSTRIAL DIRECT CO., INC. (NYSE: MSM), "MSC" or the "Company," one of the largest direct marketers and premier distributors of Metalworking and Maintenance, Repair and Operations ("MRO") supplies to industrial customers throughout the United States,today announced that it has signed a definitive agreement to acquire the assets of Rutland Tool & Supply Co. ("Rutland"), a subsidiary of Lawson Products, Inc (Nasdaq: LAWS), for approximately $11 million in cash. The acquisition is expected to close in the fourth quarter of calendar 2010, subject to customary closing conditions. The Company will finance the acquisition using available cash, and expects the acquisition will become accretive to earnings in late-fiscal 2011 or early-fiscal 2012.
Based in Whittier, CA, Rutland was founded in 1955 and markets and distributes a broad range of industrial tools, cutting tools, abrasives, machinery, precision instrument supplies, safety products and other MRO related supplies to over 20,000 customers. Customers have access to over 100,000 items through multiple channels including web, showrooms, catalogs and sales flyers. Rutland's customer base includes industrial machine and metalworking shops, as well as maintenance and repair facilities. In 2009, Rutland generated revenue of $33.7 million.
David Sandler, President and Chief Executive Officer of MSC, stated, "Rutland is a well-regarded West Coast metalworking distributor that adds to our presence in the region. We expect that this acquisition will enhance our West Coast build-out strategy and provide the opportunity for accelerated market share gains and further growth in sales and profitability."
About MSC Industrial Direct Co., Inc.
MSC Industrial Direct Co., Inc. is one of the largest direct marketers and premier distributors of Metalworking and Maintenance, Repair and Operations ("MRO") supplies to industrial customers throughout the United States. MSC distributes approximately 600,000 industrial products from approximately 3,000 suppliers to approximately 320,000 customers. In-stock availability is approximately 99%, with next day standard delivery to the contiguous United States on qualifying orders up until 8:00 p.m. Eastern Time. MSC reaches its customers through a combination of approximately 22 million direct-mail catalogs, 96 branch sales offices, 973 sales people, the Internet and associations with some of the world's most prominent B2B eCommerce portals. For more information, visit the Company's website at www.mscdirect.com.
SOURCE MSC Industrial Direct Co., Inc.
CONTACT:
Shelley Boxer,
V.P. Finance,
MSC Industrial Direct Co., Inc.,
+1-516-812-1216;
or
Investors/Media:
Eric Boyriven
or
Jeannine Dowling,
both of FD,
+1-212-850-5600
Web Site: www.mscdirect.com
