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Global steel pipe and fittings distributor Edgen Corp., Baton Rouge, LA, ($200 million in annual revenues) will buy Murray International Metals Limited, Edinburgh, Scotland, ($173 million in annual revenues). Upon completion of the purchase, a new holding company formed by Edgen's shareholders called Edgen/Murray LP will own all of Edgen and MIM. Edgen will also purchase the equity interests of Murray International Metals Inc., MIM's U.S. subsidiary. Edgen/Murray LP will be owned by Edgen's majority shareholder Jefferies Capital Partners, the management teams of Edgen and MIM, and Murray International Holdings. The transactions are scheduled to close before the end of the fourth quarter.
Beacon Roofing Supply Inc., Peabody, MA, has purchased Easton Wholesale Inc., a $9.3 million distributor of mostly residential building products in Easton, MD. The acquisition is the fourth this year for Beacon, which had $700 million in sales in 2004. Beacon is a distributor of roofing materials and complementary building products operating 138 branches in 29 states in the U.S. and Eastern Canada. Earlier this year, Beacon purchased Shelter Distribution Inc. for $170.3 million in cash. Shelter, a distributor of roofing and other building products in McKinney, TX, had $248 million in sales in 2004. Also this year, Beacon purchased JGA Corp., Atlanta, GA, a $74-million distributor of roofing and other building products in Georgia and Florida, and Insulation Systems Inc., a $19-million distributor of commercial roofing and other complementary building products in Roanoke and Virginia Beach, VA.
Beacon reported an increase in profit of 25% and an increase in sales of 30.3% to $850.9 million for fiscal year 2005. The company also saw a 24.1% increase in profit and 28.3% rise in sales in the fourth quarter. Beacon attributed some of that growth to the three acquisitions it made in 2005. Internal sales growth was 15.7 percent in the fiscal year 2005, and 10.9 percent in the fourth quarter.
Werner Electric Supply Co., Neenah, WI., has purchased Best Electric Supply Co. of Milwaukee. The acquisition expands Werner Electric's territory to include all of Southeastern Wisconsin. Combined sales are projected to reach $150 million in 2005. The additional locations in Milwaukee, Menomonee Falls and Racine give Werner Electric a total of 11 service centers throughout Wisconsin and Michigan's Upper Peninsula. Founded in 1975, Best Electric ($14 million in sales) has 50 employees in its three locations. It covers industrial, residential and construction markets. Werner Electric is a distributor of electrical technologies and services including industrial automation, lighting, electrical equipment and data communication products.