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The move follows a year in which rumors were rampant and its North American operations increasingly were hamstrung by concerns among suppliers and customers as to its financial position. There was speculation recently the company was in financing talks with Clayton, Dubilier & Rice, the investment group that bought electrical distributor WESCO in 1994 and sold it in 1998. But the company went with a deal through its lenders, including ABN Amro as the lead bank.
The announcement is likely to come with a high price tag from lenders, but has to be viewed by suppliers, U.S. employees and customers as a long-overdue move to get the financial uncertainty cleared, and shift the focus to getting its operations back on track. Click here to view full article. http://www.mdm.com/issues/33_23/news/2051-1.html
The acquisition of Century Maintenance Supply by Hughes Supply, as reported in the Nov. 25 issue of MDM, raised a few eyebrows across the industry, especially as the price it went for represents an EBIT multiple north of 10x, and an estimated EBITDA multiple somewhere around 9x. This in a time when many distribution deals are in the 5x-7x range, according to what industry dealmakers are telling MDM. As the details below point out, Century's return on invested capital is two to three times that of Hughes's ROIC, and its operating margin, at 11.25%, is well above industry averages and three times Hughes' operating income ratio to sales. To view full story, click here. http://www.mdm.com/issues/33_23/news/2052-1.html
Airgas, Inc., Radnor, PA, has acquired the assets and operations of Safety West, Inc., City of Industry, CA, a safety products distributor with annual sales of $5 million. The acquisition closed on Nov. 26. The acquired business will be integrated into Airgas West, one of 12 Airgas regional companies, headquartered in Lakewood, CA. Safety West operations will be consolidated into nearby Airgas West facilities and the distribution center in Whittier, CA.
Danaher Corporation, Washington, DC, has completed the acquisition of Accu-Sort Systems, Inc. for approximately $63 million plus an earn-out based on certain performance conditions. Accu-Sort, with approximately $90 million in revenues, is a manufacturer and marketer of stationary scanners used most commonly in manufacturing, distribution and sortation applications.
October U.S. machine tool consumption totaled $157.58 million, according to the Association For Manufacturing Technology and the American Machine Tool Distributors' Association. This total, as reported by companies participating in the USMTC program, was down 26.6% from September, and down 8.7% from the total of $172.52 million reported for October 2002. With a year-to-date total of $1,583,41 million, 2003 is down 13.4% compared to the same period in 2002.
The Institute for Supply Management's purchasing manager index registered 62.8 percent in November, an increase of 5.8 percentage points when compared to 57 percent in October. Economic activity in the manufacturing sector grew in November for the fifth consecutive month, while the overall economy grew for the 25th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business. The big improvement is in employment as the index rose above 50 percent, indicating growth, following 37 consecutive months of decline. The momentum is coming from continued strength in New Orders and