The 2020 Mid-Year Economic Update_long

MSC Hints at More Acquisitions

Purchase of Barnes Distribution North America proves valuable.
Eric-Smith-84x84

MSC Industrial Direct (NYSE: MSM) ended the fiscal year – its first complete 12-month cycle following the biggest acquisition in company history – on a high note.

The company reported sales for the fiscal year ended August 30 with sales increases for the quarter and the year. The strong performance not only validated MSC's purchase of Barnes Group's North American distribution business (BDNA) in 2013, but it further buoyed MSC's position for additional acquisitions in today's favorable M&A climate.

"Competitive activity in our industry remains fierce," President and CEO Erik Gershwind told analysts during the company's earnings call. "We are, of course, mindful of new entrants into the MRO space and into our core metalworking business. We are paying close attention and are laser-focused on sustaining our leadership position. This is why we will not back off with important growth investments or our actions to enhance our value proposition.

"I feel very good about how MSC is positioned to succeed in the next decade as the consolidation story accelerates."

MSC scripted one of the biggest chapters in the industry's consolidation story last year when it paid $550 million for BDNA – now Class C Solutions Group. CCSG contributed $184 million of incremental net sales in the fiscal year. Gershwind said the acquisition "offers a new strategic avenue for growth in the years to come."

Company executives spent much of the earnings call with analysts detailing the ongoing integration of CCSG, which has provided a blueprint for future acquisitions. And Gershwind later said, in response to a specific question about acquisitions, that M&A is on the company's radar as it looks to fiscal year 2015.

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

0

articles left

This is your last free article

Subscribe to MDM Premium today and get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.