Home » Grainger Agrees to Acquire Full Ownership of India Joint Venture
Grainger Agrees to Acquire Full Ownership of India Joint Venture
June 3, 2009
Chicago, IL-based Grainger, broad line distributor of facilities maintenance products, has agreed to acquire full ownership of its joint venture in India, Asia Pacific Brands India Private Limited, an industrial and electrical wholesaler-distributor. Grainger is paying $1.2 million.
"We are excited about growing our business in India," said Grainger's CEO Jim Ryan. "As that economy gets more competitive, Indian companies want efficient and reliable ways to get the quality products they need to keep their facilities running and their employees safe. With annual revenues of approximately $30 million, Asia Pacific will provide us a starting position in a large, high-potential MRO market."
Late last year, the company wrote down its investment in Asia Pacific due to the bankruptcy filing of Asia Pacific's largest supplier.
"Over the past six months, we have helped streamline Asia Pacific's operations, strengthen its management and enhance its supplier base. We will continue to make prudent investments in the business to deepen our presence in India's growing economy," said Bonnie McIntyre, Vice President for Grainger's International Market Development.
Asia Pacific Brands plans to go to market under the Grainger brand. It has more than 20 locations and 4,000 dealer relationships across India.
W.W. Grainger, Inc., with 2008 sales of $6.9 billion, serves customers in the U.S., Canada, Mexico, China and Panama through 600 branches, 18 distribution centers and multiple Web sites.