Grainger Buying Dutch MRO Supplier
The $344 million acquisition is subject to customary closing conditions and expected to be completed in the third quarter of 2011.
Grainger announced it will acquire the shares of Fabory Group, a leading European distributor of fasteners and related MRO products, for approximately $344 million (242 million euros), adding that the companies "plan to enter a definitive agreement upon completion of required consultations with Works Councils representing Fabory employees in the Netherlands, Belgium and France."
The transaction is subject to customary closing conditions and is expected to be completed in the third quarter of 2011, according to Grainger's news release.
Fabory is headquartered in Tilburg, the Netherlands, and is leading fastener supplier in the Netherlands and Belgium. Its 2010 sales were approximately $300 million, and it has 120,000 customers in 14 countries. "The company has been aggressively expanding its MRO and fastener offering throughout Central and Eastern Europe and also provides supply chain fastener solutions to OEM customers in Europe, North America and China as well as through a joint venture in India through Sterling Fabory Ltd.," the release states.
"Fabory provides a unique opportunity for Grainger to enter one of the world's largest MRO markets through an established and growing business," said Jim Ryan, Grainger's chairman, president, and CEO. "Fabory brings expertise as a fastener specialist to amplify Grainger's product offering, while Grainger's scale and supplier network will help accelerate further growth of Fabory's business."
Fabory will continue as a separate business maintaining the Fabory name and brand. Oswald van den Belt, CEO of Fabory Group, will continue to lead the business and report to Court Carruthers, who is president of Grainger International. "Known as the Masters in Fasteners, Fabory's demonstrated expertise in fastener products in MRO and OEM applications will benefit all of our businesses," Carruthers said. "We look forward to supporting Fabory's plans for expansion and working together to continue enhancing our fastener expertise around the world."
"We are delighted to join Grainger, the world's leading distributor of industrial supplies with demonstrated supply chain expertise, culture of service, and an unmatched product offering," van den Belt said. "Our ability to leverage each other's strengths will create a winning partnership to reach more customers with the best product offerings."