Behind Grainger's Latest Acquisition

By Lindsay Konzak

November 18, 2009

More about: Facilities Maintenance (MRO), MDM Blog, Mergers/Acquisitions, W.W. Grainger

Helping customers improve sustainability is behind service company purchase for Grainger.

Grainger (NYSE: GWW), Chicago, IL, has added its first service-based acquisition to its portfolio: Alliance Energy Solutions. MIchael Pulick, president of Grainger's U.S. operations, explained why today during the company's annual investor meeting.

Turns out, the distributor is making sustainability a focus in the coming year. What does this mean? It means Grainger is looking for ways to help customers reduce the resources they use when managing their business.

The distributor has been working with Alliance as a third-party provider in the past two years to work with their customers to improve energy efficiencies. In particular, Alliance specializes in retrofit lighting projects.

Pulick said: "We have a big opportunity to help Alliance scale up across the country. What's really powerful is our ability to take 2,300 Grainger sellers who can get out there and create demand."

Currently Alliance operates mostly east of the Mississippi River, and had about $20 million in 2008 sales.

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