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WESCO International, Inc., Pittsburgh, PA, has entered into an all-cash definitive purchase agreement to acquire Carlton-Bates Company, Little Rock, AR. Carlton-Bates was founded in 1957 and has annualized 2005 sales of approximately $300 million. The company is a large regional industrial distributor of electrical and electronic components with a special emphasis on electromechanical applications and electronic controls applications.
Carlton-Bates, with 32 branch locations and four regional warehouses, serves an estimated 20,000 customers throughout the United States and Mexico, with a concentration in core markets of the Southeastern, Southwestern, and Midwestern United States. A division of Carlton-Bates, LADD Industries, Inc., is the sole U.S. distributor of engineered connecting devices for the Deutsch Company, Inc.'s Industrial Products Division. LADD provides sales and services for engineered environmentally sealed, heavy-duty electrical interconnection devices for critical circuits and applications in harsh environments where high performance and reliability are required.
"We are very pleased with the prospect of combining Carlton-Bates into WESCO's leading position in the electrical distribution market," said Roy W. Haley, WESCO's Chairman and CEO. "This important acquisition provides a unique opportunity to more deeply penetrate the original equipment manufacturer market segment with specialty products, applications and value-added services. Carlton-Bates has an effective and proven marketing strategy to the OEM market and has a track record of growth and responsive customer service. The planned acquisition of Carlton-Bates, along with the recently closed acquisition of Fastec Industrial Corp., provides WESCO the opportunity to strategically supplement our proven organic growth model."
"WESCO Distribution provides a significant strategic platform to expand our base of operations," said William P. Carlton, CEO of Carlton-Bates Company. "This is an exciting opportunity for the employees, customers and suppliers of Carlton-Bates. We firmly believe our unwavering commitment to sales and service will lead to increased sales opportunities given WESCO's market coverage and outstanding base of industrial customers."
Separately, WESCO confirmed the completion of its previously announced acquisition of Fastec Industrial Corp. Fastec, with annual sales of approximately $55 million, is a nationwide importer and distributor of industrial fasteners, cabinet hardware, and locking and latching products.