Grainger, Lake Forest, IL, distributor of broad line facilities maintenance products, has bought a 49.9% stake in Asia Pacific Brands India Ltd., based in India.
Grainger paid $5.4 million; at the same time, the company matched a $1.1 million capital infusion with its joint venture partner intended to help grow the business.
India was chosen for expansion because it is large, fragmented and growing rapidly, Bonnie McIntyre, Grainger's vice president for International Market Development, told MDM. Asia Pacific Brands has a well established infrastructure in the market, making it an ideal candidate for Grainger's entrance.
We're leveraging Grainger's strengths in supply chain management, product breadth, and superior customer service in emerging markets," said Grainger President and CEO Jim Ryan. "Our investment in Asia Pacific Brands allows us to extend our value into a new geography with the help of a locally established, well respected and profitable partner."
With 27 locations and more than 6,200 dealer relationships across India, Asia Pacific Brands had revenue of $47 million (USD) for its fiscal year ended March 31, 2008.
Grainger continues to look for opportunities to grow in the global MRO market and has identified several promising emerging markets, McIntyre said. "We expect to continue to expand globally, but have no specific timetable at this time."