MDM News Digest 3501

Note: MDM's offices have
moved to 2737 Mapleton Street, Ste. 201, Boulder, CO 80304. All other
contact information remains the same, and can be found on the last page of this
section.

The Home Depot
Canada, Montreal, ON,
the country's largest home improvement retailer, has entered into a definitive
agreement to acquire Litemor Distributors, Canada's largest
national commercial lighting distributor. The acquisition will expand the
company's reach into the Canadian professional marketplace, particularly in the
commercial and institutional sectors. Litemor will become a part of The Home
Depot Supply Canada, a division of The Home Depot, Inc., focused on serving the
diverse needs of its business-to-business customers. More...

Bosch
Rexroth AG has
acquired the majority of shares in Oil Control Group S.p.A.,
Milan, Italy, a manufacturer of hydraulic cartridge valves and manifolds. Its
Oil Control, EDI System, Oil Sistem, TARP and LC Oleodinamica brands offer
products such as screw-in valves, control blocks and small units. In 2003, Oil
Control Group had sales of 113 million euros. href="http://www.mdm.com/pub/1_1/breaking-news/2457-1.html"
target=_blank>More...

W.W.
Grainger, Chicago,
said its Lab Safety Supply subsidiary has signed a definitive
agreement to acquire AW Direct, Inc., Berlin, CT, a $28-million
direct marketer of products to the $3 billion service vehicle accessories
market. AW Direct sells general towing and work truck equipment and accessories
to customers in the auto service, utilities, government, and construction
markets. Grainger expects the acquisition to close, subject to standard
conditions, in the 2005 first quarter and be accretive within a year.

Tool-Krib Supply
Company, West
Caldwell, NJ, has purchased certain assets of the J.T. Reddy and
Company, Feasterville, PA. Tool-Krib Supply President Peter Madsen says
the acquisition of the machine and cutting tool distributorship that started in
1946 continues his goal of expanding geographic reach to support the MRO and
production tool needs of
customers.

Software vendor Sterling
Commerce, a wholly owned subsidiary of SBC Communications Inc., has
agreed to purchase Yantra Corporation, Boston, MA, a provider
of distributed order management and supply chain fulfillment solutions, for
approximately $170 million in cash. The deal gives Sterling Commerce, long known
for data synchronization, a platform to extend its reach up the channel and
integrate suppliers with customers. More...

U.S. manufacturers to
continue their investments in new machine tools, driven by pent-up demand, tax incentives
and the need for increased capacity. November U.S. machine tool consumption of
$275.20 million was up 18.3% from October and up 40.4% from the total of $195.98
million reported for November 2003. With a year-to-date total of $2,669.77
million, 2004 was up 43.0% compared with 2003, according to a monthly reporting
program by the American Machine Tool Distributors' Association and the
Association for Manufacturing Technology.

Parker Hannifin
Corporation,
Cleveland, OH, has acquired the operations of Houston-based Trilogy
Systems for an undisclosed amount. Trilogy will join Parker Automation
Group's Electromechanical Automation Division, Rohnert Park, CA. Founded in
1986, Trilogy Systems employs 38 people and has annual sales of approximately $6
million. Trilogy is a North American manufacturer of linear motors.
According to Parker Automation Group President Bob Bond, the acquisition
provides Parker with all of

Lincoln Electric
Holdings, Inc.,
Cleveland, OH, has signed a letter of intent to acquire all of the outstanding
stock of the J.W. Harris Co., Inc., a privately held brazing
and soldering alloys manufacturer headquartered in Mason, OH with fiscal 2004
sales of $100 million. Founded in 1914, Harris has 335 employees at
manufacturing facilities in Ohio, Rhode Island and Mexico plus an international
distribution center in Spain. The company is the market leader in the U.S. for
high-quality brazing alloys.

Danaher
Corporation,
Washington, DC, signed a definitive agreement to purchase LEM
Instruments, a division of Swiss based LEM Group for $57 million in
cash including transaction costs and net of cash acquired. With primary
operations in the United Kingdom and Austria, LEM Instruments produces and sells
an array of electrical measurement solutions used in both commercial and
industrial applications. The business generated fiscal 2004 revenues of $45
million and will become a part of Danaher's Electronic Test platform. The
company expects minimal accretion in 2005.

Dana
Corporation, Toledo,
OH, has signed a long-term agreement with Federal- Mogul
Corporation to supply Dana with grey iron castings from its western
Michigan facility. Grey iron castings are used in the manufacture of piston
rings. Consequently, Dana will close its Muskegon, MI., foundry operations.
Production is expected to end in the third quarter of 2005, eliminating
approximately 240 jobs. This action will result in an after-tax charge of
approximately $12 million, of which $11 million will be recorded in the fourth
quarter of 2004.

Permatex,
Inc., a portfolio
company of investment firm The Jordan Company, L.P., has been
sold to Illinois Tool Works Inc. Permatex is a manufacturer and
distributor of premium branded specialty-chemical products sold primarily in the
automotive aftermarket. Product lines include adhesives and sealants, waterless
hand cleaners, lubricants and cleaners, appearance and performance products, and
other specialty maintenance and repair products. ITW has 625 decentralized
business units that operate in 44 countries, designing and manufacturing a range
of products used in the automotive, construction, paper products, and food and
beverage industries.

Parker Hannifin
Corporation,
Cleveland, OH, reported orders for the North American Industrial businesses
increased 4 percent over the same month last year, while Rest-of-World
Industrial orders increased 15 percent. In the Climate and Industrial Controls
business (CIC) order rates were 4 percent higher, and orders at Parker Aerospace
were 25 percent higher compared with last year. In the North American Industrial
segment, the company noted order strength across most major end markets,
including oil and gas, mobile and general industrial. Distribution continues to
be strong. In the Rest-of-World Industrial units, all regions reported
year-over-year increases.

B&D
Industrial, Macon, GA,
has elected Howard Gainey a vice president of the company. A
24-year veteran of the company, Gainey most recently worked as the general
manager of the Bearings and Drives (a B&D Industrial company) branch
operations. B&D Industrial is the South's largest, privately owned
distributor of industrial supplies and services to mining, manufacturing and OEM
companies.

U.S. distributors'
year-to-date sales of power transmission/motion control products
increased 11.5 percent
in November as compared to sales for January through November 2003. Sales
decreased 2.7 percent over the previous month and climbed 18.4 percent as
compared to November 2003, according to monthly trend data by the Power
Transmission Distributors Association. More...