MSC Industrial Supply hasn’t been particularly active with bolt-on acquisitions in recent years, but it’s made a splash with the few times it has.
The metalworking and MRO supplies distributor announced June 3 that it has acquired Engman-Taylor — a highly-regarded metalworking tools and supplies distributor based in the Milwaukee, Wisconsin-area suburb of Menomonee Falls.
It’s only MSC’s third acquisition in the past four years, coming one year after the company announced the addition of Wm. F. Hurst Co. (Wichita, Kansas). Before that, you’d have to go back to May 2018 for MSC’s other most recent acquisition of fellow southeast Wisconsin-based distributor All Integrated Solutions (Franksville, Wisconsin).
Engman-Taylor adds 90 employees and five locations to MSC’s footprint, with two locations in Wisconsin, two in Illinois and one in North Carolina, along with satellite locations throughout the U.S. Founded in 1956, the company’s main product categories include: cutting tools, abrasives, power tools, material handling, safety, coolant, vending, Jan/San and 3D printing. Engman-Taylor customers will now have access to MSC’s more than 2 million products, inventory management and other supply chain solutions.
“We are pleased that Engman-Taylor will be joining forces with MSC,” MSC President and CEO Erik Gershwind said in a news release. “Just as our roots go back to metalworking more than 80 years ago, Engman-Taylor brings decades of technical expertise in metalworking. Their team offers a strong fit in terms of skill, capabilities and culture, and their focus on serving customers at a very high level aligns well with our approach to helping customers solve their mission-critical challenges on the plant floor.”
Melville, New York and Davidson, North Carolina-based MSC said Engman-Taylor will continue to operate under its current name and company president and owner Rick Star will continue to lead the business.
MSC didn’t state the financial terms of the acquisition, but noted that it’s expected to have essentially a neutral impact on its 2022 fiscal earnings — its fiscal year ends in late August — and will be slightly accretive to its fiscal 2023 earnings. MSC’s 2022 third quarter ended in late May.
Engman-Taylor’s recent accolades include being named AD’s Member of the Year at the association’s 2019 North American Meeting, and the Industrial Supply Association’s 2017 American Eagle Excellence in Industry award. Further back, the company was named Modern Distribution Management’s 2014 Market Mover.
“MSC is a recognized and respected leader in the industrial supply distribution industry,” Star said. “The company’s strong track record of enabling the companies it acquires to maintain their identities and customer relationships while offering its vast portfolio of products and solutions provides a winning formula for both organizations. Most importantly, it will enable us to bring even greater value to our customers.”
A key element of Engman-Taylor’s value proposition is its documented cost savings, which it calls “the Cost Circles”, which have produced $55 million in customer savings to date, according to the company. Those cost savings applications include Optimization Services in tool assembly, inventory and 3D printing.
MSC had 2021 fiscal sales of $3.24 billion and has approximately 6,500 employees.