May 25, 2006 - Modern Distribution Management

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May 25, 2006

Apollo Management to Buy Rexnord for $1.825B

Rexnord Corporation, Milwaukee, WI, a manufacturer of precision motion technology products, announced that an affiliate of the private equity firm, Apollo Management, agreed to buy RBS Global, Inc., the corporate parent of Rexnord, for $1.825 billion from private equity firm The Carlyle Group and management. The transaction is subject to government approvals and other customary […]

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Barjan Products Buys Equipment Manufacturer

Monomoy Capital Partners, L.P. announced that its portfolio company, Barjan LLC, distributor of consumer products to travel centers, truck stops, car washes and convenience stores, has acquired the Astatic Mobile Communications business from Omnitronics, LLC.Astatic has been the leading manufacturer of aftermarket CB microphones and other CB radio equipment for over 70 years. An innovator

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Stem the Tide: Rising Fuel Costs

Direct orders to branches instead of a central facility to avoid compounding costs with internal transfers. A downside to this strategy is that it may challenge in the areas of inventory and staffing.Analyze Replenishment PracticesJust-in-time inventory replenishment requires more frequent and smaller deliveries. This usually requires the use of LTL, or Less Than Truckload, Miklovic

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Square D Sues Unauthorized Distributor

Square D distributor; authorized distributors inflate the price of Square D’s products; the authorized distributors do not maintain adequate stock; Square D coaches and trains its distributors to obfuscate and to be manipulative; Scott purchases Square D products by the “trailer load”; Scott uses its quality control department to test its Square D products; and

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Canadian Distributor 2005 Sales Up 5.4%

markets:Alberta: $55 billion sold in 2005, up 15.5 percent. Sharp increases in oil prices accounted for much of the increase in sales by machinery wholesalers, as oil companies have accelerated their investments.Manitoba: Personal and household goods performed well as a result of positive economic conditions. The Agreement on Textile and Clothing, which imposed quotas on

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Global Metals M&A Sees New Highs

The metals industry continued to consolidate in 2005, as leading producers sought to control the rising cost of raw materials by purchasing suppliers outright, according to a recent PricewaterhouseCoopers report, “Forging Ahead: Mergers and Acquisitions Activity in the Global Metals Industry 2005.”Further mergers and acquisitions activity is likely, and China will be a significant source

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Commentary: Channel Management Emerging as a Differentiator

The spring meeting season, now coming to a close, has been significantly more upbeat than for several years. Sales remain strong, with many distributors setting record sales months. Others are rebuilding sales levels back to where they were in the late 1990s.Nearly every company can say it has fewer people working more efficiently than a

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Monthly Wholesale Trade: Sales and Inventories for March 2006

March 2006 sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $315.0 billion, up 0.7 percent from the revised February level and were up 9.9 percent from the March 2005 level. The February preliminary estimate was revised upward $0.7 billion

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News Digest 3610

…Strategic Distribution Inc., Bristol, PA, reported its revenues for the three months ended March 31, 2006, increased $7.7 million, or 26.5 percent, to $36.7 million from $29 million in the same period last year. The company recorded a net loss of $1.096 million, compared with a net loss of $1.601 million for the same period

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1Q Construction Spending Up; Housing Starts Cool in April

Overall Construction SpendingDuring the first three months of this year, construction spending was $253.5 billion, 9.2 percent above the $232.1 billion for the same period in 2005. Construction spending during March 2006 was estimated at a seasonally adjusted annual rate of $1,199.1 billion, 0.9 percent above the revised February estimate of $1,188.7 billion. The March

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MDM Inflation Index: April 2006

Modern Distribution Management’s April Inflation Index, which measures a cross-section of industrial supplies, is up 0.01% over the previous month, and up 3.88% from April 2005. Summary of MDM Inflation Index for the past 12 months: April 2006 Index 262.1March 2006 Index 262.1Febuary 2006 Index 261.2January 2006 Index 260.2December 2005 Index 258.1November 2005 Index 256.1October 2005 Index

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MDM May 25, 2006

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