The investment group behind Consolidated Electrical Distributors (CED), Emco Corporation, Hajoca Corporation and other distribution businesses in North America and abroad is building out a platform in plastics distribution. Laird Plastics, at US$210 million in 2003 revenues the largest independent distributor of semi-finished plastic shapes and parts in North America, (second in revenue to GE Plastics), is being sold to an affiliate of Blackfriars Corporation, a privately held U.S. investment group. The president of Blackfriars is Keith Colburn, chairman and CEO of CED, with estimated revenues above $2.5 billion and 550 locations. Purchase price for Laird Plastics is US$65 million, almost ten times the company's 2003 operating profit. See article on p. 3 of this section.
Regal-Beloit Corporation, Beloit, WI, has agreed to acquire GE's Commercial AC Motor business, which includes a full line of AC motors for pump, compressor, equipment and commercial HVAC applications. Regal-Beloit gets a $130-million business on the commercial side to complement its industrial motors and generator business, with a manufacturing plant in Mexico.
Atlas Copco (China) Investment Company Ltd., Stockholm, Sweden, has acquired the assets of air tool manufacturer Qingdao Qianshao Precision Machinery Corporation in People's Republic of China. Annual sales are approximately US$6.5 million. The purchase price was not disclosed. Qingdao Qianshao Precision Machinery Corporation (QQPMC), based in Qingdao, Shandong Province, is a producer of pneumatic tools for the industrial market as well as for the automotive aftermarket and the aerospace industry. The new operation will become part of the Chicago Pneumatic division within the Industrial Technique business area. A new Equity Joint Venture, CP Qianshao (Qingdao) Power Tools Ltd., has been formed. This joint venture is owned 80% by Atlas Copco (China) Investment Company Ltd and 20% by QQPMC. The company employs 80 people. At the same time, Atlas Copco (China) Investment Company Ltd. has formed a minority (25%) Equity Joint Venture with QQPMC (owning 75%) for power tools component manufacturing.
Kaman Industrial Technologies Corp., Windsor, CT, has purchased the assets and business of Brivsa de Mexico, Monterey, Mexico. The business will be organized as part of KIT's Delamac de Mexico, S.A. de C.V subsidiary. Founded in 1986, Brivsa is a distributor of bearings and related power transmission components used by the textile, cement, glass, steel, refinery and food manufacturing industries. The company has annual sales of $1 million and is headed by Ricardo Vara Limones, who agreed to stay on with Delamac as branch operations manager to ensure a smooth integration into the Delamac organization. The Monterey location will be the fourth branch in the Delamac distribution network.
Distributors in Florida were battered but not beaten by the fury of hurricane Charley. In its aftermath, they're doing all they can to help the area rebuild. MDM talked with Hughes Supply and Miller Bearings to gauge the impact and the response. See article on p. 4 of this section.
McJunkin Corporation, Charleston, WV, said that Joe Herzog has assumed the new position of Vice President of Supply Management, Valves and Specialty Products Group. His primary focus will be to extend McJunkin's automation presence nationwide. Upon McJunkin's acquisition of Valvax in 2003, Herzog was named regional manager for McJunkin's Midwest Region. He was the former president of Valvax, a Cincinnati based distributor of valves, engineered valves, valve automation and specialty products. Previous to Valvax, Joe was also the GM of Flowserve Automax Division.
DXP Enterprises, Inc., Houston, is putting more of a focus on continuous supply chain management improvements. The company has appointed Vincent Esposito