Grainger Announces Acquisition of Imperial Supplies, LLC
October 14 2009 - 8:10AM
PR Newswire (US)
CHICAGO, Oct. 14 /PRNewswire-FirstCall/ -- Grainger (NYSE:GWW),
North America's leading broad line distributor of facilities
maintenance products, today announced it has signed and closed an
all cash acquisition of Imperial Supplies, LLC from American
Capital, Ltd. (NASDAQ:ACAS). No other terms of the agreement were
disclosed. Grainger anticipates the transaction should be accretive
to earnings by $.03-$.05 a share in 2010 including product and
transportation cost savings. Imperial is a national distributor of
quality maintenance products and aftermarket components for the
vehicle and fleet industry. The company has built its strong
reputation by offering customers highly efficient methods to order
and monitor their purchases, serving the fleet market since 1958.
In 2008, Imperial had sales of $67 million. "Imperial Supplies is a
leading player in the $4 billion fleet maintenance industry and we
are excited to begin working together," said Mike Pulick, President
of Grainger's U.S. Businesses. "In addition to the financial
benefits for our shareholders, we anticipate cross selling
opportunities by offering Imperial customers access to Grainger's
broad product offering and national distribution scale and Grainger
customers access to the 20,000 fleet maintenance products Imperial
carries." The business will continue to operate as Imperial
Supplies, LLC under Grainger's Specialty Brands business and will
be led by Rob Gilson, Imperial's CEO. Gilson will report to Ralph
Howard, Vice President, Specialty Brands, and together they will
leverage Grainger's expertise and resources to profitably grow
market share. "We share common values that focus on serving
customers with the utmost integrity," said Gilson. "Going forward,
this is a big win for Imperial customers because they have our
ongoing commitment to superior service combined with the scale of
Grainger's industry leading network." Grainger's Specialty Brands
consists of Lab Safety Supply (serving lab and safety
professionals), Ben Meadows (serving forestry professionals),
Gempler's (serving professionals in the agriculture and
horticulture industries), Professional Equipment/Construction Book
Express (serving inspection, electrical, HVAC, engineering and
building professionals), Rand (serving facility and warehouse
professionals), McFeely's (serving professional woodworkers), AW
Direct (serving towing and service vehicle professionals) and
Highsmith (serving library and school professionals). About
Grainger W.W. Grainger, Inc. (NYSE:GWW), with 2008 sales of $6.9
billion, is the leading broad-line supplier of facilities
maintenance products serving businesses and institutions in the
United States, Canada, Mexico, China, India and Panama. Through a
highly integrated network including nearly 600 branches, 18
distribution centers and multiple Web sites, Grainger's employees
help customers get the job done, saving them time and money by
having the right products to keep their facilities running. About
Imperial Supplies, LLC Imperial Supplies, headquartered in Green
Bay, Wisconsin, was founded in 1958. Imperial serves diverse
vehicle and fleet maintenance end-markets with a customer focused
sales and service model. The company currently operates four
distribution centers in Green Bay, WI; Charlotte, NC; Dallas, TX;
and Reno, NV. About American Capital American Capital is a publicly
traded private equity firm and global asset manager. American
Capital, both directly and through its asset management business,
originates, underwrites and manages investments in middle market
private equity, leveraged finance, real estate and structured
products. Founded in 1986, American Capital has $11 billion(1) in
capital resources under management and nine offices in the U.S.,
Europe and Asia. For further information, please refer to
http://www.americancapital.com/. (1) As of June 30, 2009.
DATASOURCE: Grainger CONTACT: Media, Jan Tratnik, Director, Public
Affairs & Corporate Communications, +1-847-535-4339, or Erin
Ptacek, Director, Corporate Brand & Reputation,
+1-847-535-1543, or Investors, Ernest Duplessis, Vice President,
Investor Relations, +1-847-535-4356, or William Chapman, Director,
Investor Relations, +1-847-535-0881, all of W.W. Grainger, Inc.
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