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Home » MRO Direct Closes $2-million Financing

MRO Direct Closes $2-million Financing

March 25, 2004
More about:  Facilities Maintenance (MRO),  Mergers/Acquisitions
MRO Direct, Inc., a Pittsburgh-based strategic sourcing and procurement services company, has closed a $2 million capital round, of which almost $1.9 million is actually invested or committed. According to Don Belt, President, CEO, MRO Direct, the resources will be used to fund working capital until an operating profit is generated (projected in the second half of 2004) and to invest in technology to enhance the current e-commerce platform.

MRO Direct provides sourcing and procurement processes designed to generate both hard cost savings (greater than 20%) and process savings to generate the lowest total procurement cost solution for purchasing MRO supplies. MRO Direct has a unique business model in the MRO distribution Industry in that the emphasis is placed on taking hard costs ...

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MRO Direct, Inc., a Pittsburgh-based strategic sourcing and procurement services company, has closed a $2 million capital round, of which almost $1.9 million is actually invested or committed. According to Don Belt, President, CEO, MRO Direct, the resources will be used to fund working capital until an operating profit is generated (projected in the second half of 2004) and to invest in technology to enhance the current e-commerce platform.

MRO Direct provides sourcing and procurement processes designed to generate both hard cost savings (greater than 20%) and process savings to generate the lowest total procurement cost solution for purchasing MRO supplies. MRO Direct has a unique business model in the MRO distribution Industry in that the emphasis is placed on taking hard costs out of the supply chain through disintermediation of local distributors, aggregating demand, and standardization of items. MRO Direct is currently expanding its headquarters in Pittsburgh, reflecting both current and expected growth in its number of employees. Other offices are located in Detroit, MI, and London, Ontario.

Investors include: C&L Venture Fund V; PA Growth Fund; Calumet, Ltd; Pribanic & Pribanic; iNetwork, LLC; Gefsky and Lehman Investment Partnership IV; MRO Direct, Inc. management; Socius Partners, LLC; and RainMaker Capital, among others.

'This capital round will enable MRO Direct to add new customers and set the technology foundation for our significant growth plans, which reflect sales exceeding $200 million in 2007 and more than 130 employees worldwide,' said Belt. He told MDM the company is effective in delivering 10-percent hard cost savings in phase 1 of their programs with customers, which include monthly performance documentation.

Major MRO Direct customers include TRW Automotive (Detroit) and Valspar Corporation (Minneapolis). The company currently employees 18 individuals and projects $20 million in 2004 sales.

In October 2003, MRO Direct received a $460,000 package of grants, low interest loans, tax credits, and training funds from the Commonwealth of Pennsylvania.

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