MDM News Digest 3407

Prophet 21, Yardley, PA, a provider of technology solutions for durable goods distributors, has announced the acquisition of Distributor Information Systems Corporation (DISC), Farmington, CT, a provider of enterprise software solutions and services for fluid power distributors. DISC, founded in 1979, grew out of a fluid power distributor's homegrown system developed during the 1960s and 1970s. Pearse-Pearson Company installed its first online system in 1973, and integrated branch operations into the home office system shortly thereafter. In 1974, the company was approached to make its software system available to other distributors. By 1979, 17 systems had been installed around the U.S., and the company spun off its sister company to market and support the software. DISC now has 315 customers and 70 employees. See article on p. 4 of this section. More...

Brady Corporation, Milwaukee, WI, has signed a definitive agreement to acquire EMED Co., Inc., Buffalo, NY, from Summit Partners in a cash transaction for $190 million. EMED is a direct marketer and manufacturer of identification products, including traffic and parking signs, warehouse and shipping signage, first aid and protective wear, security and emergency preparedness products, and other custom signage and safety solutions. EMED had 2003 sales of $55 million. Brady's fiscal 2003 sales were approximately $555 million.

Cooper Industries, Ltd., Houston, TX, has acquired RSA Lighting, Chatsworth, CA, a privately held manufacturer of specification and commercial grade lighting fixtures. RSA's product line includes architectural ceiling- mounted downlighting for recessed applications, particularly applicable for boutique retail and high-end residential uses. RSA will become part of the Cooper Lighting division of Cooper Industries.

W.W. Grainger, Inc., Chicago, IL, is restructuring to drive its growth plans in national and international markets. The move was announced with the resignation of president and COO Wesley M. Clark. Grainger's goal: Realign its operations by units to better focus on sales and service goals. The largest unit represents all of Grainger's businesses operating under the Grainger brand in the U.S., including the 400 branches and nine distribution centers in its domestic supply chain network and Grainger's outsourcing business. Marketing EVP Jim Ryan gets promoted to president of this unit. More...

MSC Industrial Direct Co., Inc., Melville, NY, reported net sales for the second quarter of fiscal 2004 ended Feb. 28 increased 10.0% to $230.5 million, compared to net sales of $209.6 million in the second quarter of fiscal 2003. In the first quarter of fiscal 2004, the company reported a net sales growth rate of 5.7% over the same period in fiscal 2003. Net income for the fiscal 2004 second quarter was $18.5 million, 45.4% higher than fiscal 2003's second quarter net income of $12.8 million. For the first half of fiscal 2004, the company's net sales rose 7.8% to $453.3 million, compared to net sales of $420.3 million a year ago. Net income in the fiscal 2004 six-month period was $35.0 million, compared to $25.2 million in the year ago period, an increase of 37.8%.More...

Strategic Distribution, Inc., Bensalem, PA, reported revenues for the fourth quarter of 2003 were $26.4 million, compared to revenues of $40.9 million reported for the fourth quarter of 2002. The $14.5 million decrease in revenues was primarily attributable to the termination of the El Paso Corporation (EPC) integrated supply agreement in July 2003. The EPC termination accounted for $8.0 million of the decrease. The company reported no EPC revenues in the fourth quarter of 2003. Additional decreases in revenues were attributable to the termination of other integrated

supply service contracts totaling $4.4 million and to continued weakness within its core customer base totaling $2.1 million.More...

Independent Distributors Cooperative ﾖ USA, Indianapolis, IN, has added three companies to its member list: Grand Traverse Rubber & Supply, Inc., Traverse City, MI; Pooley, Inc., Buffalo, NY; and Mill Supply Corporation, Portland, OR. Established in 1988, IDCﾖUSA is a member-owned purchasing and national marketing cooperative of independent distributors of industrial bearing, power transmission and industry related products. The cooperative currently consists of 180 distribution locations across the U.S. and $550 million in annual sales.

The National Association of Wholesaler-Distributors has joined the Power Transmission Distributors Association Educational & Scholastic Foundation's efforts to launch an industrial distribution curriculum for community colleges to develop local pools of qualified potential employees and create affordable resources for employee development.

The PTDA Foundation is working with community colleges to customize the curriculum to meet the needs of local distributors and manufacturers. Students already are enrolled at Henry Ford Community College in Detroit and Metropolitan Community College in Omaha. The Foundation currently is working with the newest pilot site, Cuyahoga Community College in Cleveland, to finalize their curriculum. Orlando, Philadelphia, Minneapolis, Toronto and Vancouver have been targeted for additional pilots in 2004.

Including NAW, 12 associations now support the initiative. Supporters include the Association for High Technology Distribution, Electrical Apparatus Service Association, Gases and Welding Distributors Association, Industrial Distribution Association, International Association of Plastics Distributors, International Sanitary Supply Association, North American Horticultural Supply Association, National Fastener Distributors Association, Power Transmission Distributors Association, Safety Equipment Distributors Association and Security Hardware Distributors Association.