The 2020 Mid-Year Economic Update_long

October 10 2007

Volume 37, Issue 19 - 10/10/2007

Volume:

37

Issue:

19

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Features
Paris-based Sonepar's unsolicited $3.5 billion (2.5 billion euro) bid Oct. 8 for Hagemeyer NV shook the electrical distribution world this week. Hagemeyer rejected the offer, saying it significantly undervalues the company." Nevertheless, the Netherlands-based company says it will meet with Sonepar to "clarify its intentions.


Based on comments by Hagemeyer CEO Rudi de Becker in August, Hagemeyer is not interested in selling. Still, Sonepar will likely try to persuade the company's board and raise its bid.

Joining Sonepar and Hagemeyer would create a global powerhouse with revenues of roughly 15 billion euro (US$21 billion), based on the two companies'reported sales in 2006. The merger would also mean greater and complementary market coverage for both companies ...
MDM Editor Lindsay Young spoke with SKF Service Division President Phil Knights at the European Power Transmission Distributors Association annual meeting last month in Monaco about how the global manufacturer views the distribution marketplace. Knights oversees all 70 of the SKF Service Division units worldwide. The division is responsible for sales to the industrial aftermarket via a network of 7,000 distributor locations and comprises about one-third of the SKF Group's sales.
&nbsp ;
MDM: What impact is consolidation having on independent distribution channels?

Phil Knights: The biggest get bigger and sometimes the smaller ones disappear. That is happening in Europe at quite a fast speed now. It's following similar patterns in the U.S. with one ...
Pre-dispute resolution provisions should be carefully considered, along with much of the other seemingly legal "boiler-plate" provisions that show-up at the end of distribution and other contracts, before signing off on a contract that can affect a business relationship for years.
&nbsp ;
Most distributors are familiar with written contracts (like distribution agreements) that have provisions near the end of the document that appear quite legal in nature. Generally, one set of these legal provisions relates to where and how contract disputes are resolved. Most distributors are familiar with arbitration, where the parties give up the right to have their claim heard in court, as well as their right to a jury trial. Mandatory arbitration provisions,"however, are just the tip of the ...
Sales
August 2007 sales of merchant wholesalers, except manufacturers'sales branches and offices, were $360.9 billion, up 0.4 percent from the revised July level and were up 6.8 percent from the August 2006 level. The July preliminary estimate was revised upward $0.5 billion or 0.1 percent. August sales of durable goods were up 0.9 percent from last month and were up 4.4 percent from a year ago. August sales of nondurable goods were down 0.1 percent from last month, but were up 9.1 percent from last year.
&nbsp ;
Inventories
Total inventories of merchant wholesalers, except manufacturers'sales branches and offices, were $399.0 billion at the end of August, up 0.1 percent from the revised July level and were up 4.4 percent from a year ...
As our lead article notes, the big attraction for Sonepar is Hagemeyer's North American industrial business. Sonepar's U.S. customer base is 64 percent electrical contractors and only 14 percent industrial. Hagemeyer's North American operations are 85 industrial and 15 percent contractor. Sonepar would get a well-developed integrated supply business with more diversified products.
&nbsp ;
You have to ask how the model developed for a century or so by Cameron & Barkley and acquired by Hagemeyer at the turn of this century would change& hellip; again -for customers, vendors and employees.
&nbsp ;
Will we see more diversification across channels? Is it possible to buy growth in big chunks and combine different pieces to produce a profitable entity? Recent history seems to ...
CED (Consolidated Electrical Distributors) will acquire US Electrical Services, LLC, Exton, PA,&nbsp ; a recently formed distribution holding company lead by former Sonepar USA chief Richard Worthy. US Electrical Services will continue to operate as a separate entity. Worthy will lead the company as its CEO.&nbsp ; More
&nbsp ;
Hagemeyer NV said in a press release Tuesday that Sonepar's unsolicited bid of US$3.5 billion (2.5 billion euro) "significantly undervalues the company." Hagemeyer says it will meet with Sonepar to "clarify its intentions." Paris-based Sonepar announced in an unsolicited offer that it would pay 4.25 euro in cash per share for the ...
This is the pdf of this issue of Modern Distribution Management. Apply the full $24.95 pay-per-view cost toward an annual subscription (within 30 days of purchase), which includes two issues a month plus access to more than six years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to ...
PDF Download
Paris-based Sonepar's unsolicited $3.5 billion (2.5 billion euro) bid Oct. 8 for Hagemeyer NV shook the electrical distribution world this week. Hagemeyer rejected the offer, saying it significantly undervalues the company." Nevertheless, the Netherlands-based company says it will meet with Sonepar to "clarify its intentions.


Based on comments by Hagemeyer CEO Rudi de Becker in August, Hagemeyer is not interested in selling. Still, Sonepar will likely try to persuade the company's board and raise its bid.

Joining Sonepar and Hagemeyer would create a global powerhouse with revenues of roughly 15 billion euro (US$21 billion), based on the two companies'reported sales in 2006. The merger would also mean greater and complementary market coverage for both companies ...
MDM Editor Lindsay Young spoke with SKF Service Division President Phil Knights at the European Power Transmission Distributors Association annual meeting last month in Monaco about how the global manufacturer views the distribution marketplace. Knights oversees all 70 of the SKF Service Division units worldwide. The division is responsible for sales to the industrial aftermarket via a network of 7,000 distributor locations and comprises about one-third of the SKF Group's sales.
&nbsp ;
MDM: What impact is consolidation having on independent distribution channels?

Phil Knights: The biggest get bigger and sometimes the smaller ones disappear. That is happening in Europe at quite a fast speed now. It's following similar patterns in the U.S. with one ...
Pre-dispute resolution provisions should be carefully considered, along with much of the other seemingly legal "boiler-plate" provisions that show-up at the end of distribution and other contracts, before signing off on a contract that can affect a business relationship for years.
&nbsp ;
Most distributors are familiar with written contracts (like distribution agreements) that have provisions near the end of the document that appear quite legal in nature. Generally, one set of these legal provisions relates to where and how contract disputes are resolved. Most distributors are familiar with arbitration, where the parties give up the right to have their claim heard in court, as well as their right to a jury trial. Mandatory arbitration provisions,"however, are just the tip of the ...
Sales
August 2007 sales of merchant wholesalers, except manufacturers'sales branches and offices, were $360.9 billion, up 0.4 percent from the revised July level and were up 6.8 percent from the August 2006 level. The July preliminary estimate was revised upward $0.5 billion or 0.1 percent. August sales of durable goods were up 0.9 percent from last month and were up 4.4 percent from a year ago. August sales of nondurable goods were down 0.1 percent from last month, but were up 9.1 percent from last year.
&nbsp ;
Inventories
Total inventories of merchant wholesalers, except manufacturers'sales branches and offices, were $399.0 billion at the end of August, up 0.1 percent from the revised July level and were up 4.4 percent from a year ...
As our lead article notes, the big attraction for Sonepar is Hagemeyer's North American industrial business. Sonepar's U.S. customer base is 64 percent electrical contractors and only 14 percent industrial. Hagemeyer's North American operations are 85 industrial and 15 percent contractor. Sonepar would get a well-developed integrated supply business with more diversified products.
&nbsp ;
You have to ask how the model developed for a century or so by Cameron & Barkley and acquired by Hagemeyer at the turn of this century would change& hellip; again -for customers, vendors and employees.
&nbsp ;
Will we see more diversification across channels? Is it possible to buy growth in big chunks and combine different pieces to produce a profitable entity? Recent history seems to ...
CED (Consolidated Electrical Distributors) will acquire US Electrical Services, LLC, Exton, PA,&nbsp ; a recently formed distribution holding company lead by former Sonepar USA chief Richard Worthy. US Electrical Services will continue to operate as a separate entity. Worthy will lead the company as its CEO.&nbsp ; More
&nbsp ;
Hagemeyer NV said in a press release Tuesday that Sonepar's unsolicited bid of US$3.5 billion (2.5 billion euro) "significantly undervalues the company." Hagemeyer says it will meet with Sonepar to "clarify its intentions." Paris-based Sonepar announced in an unsolicited offer that it would pay 4.25 euro in cash per share for the ...
This is the pdf of this issue of Modern Distribution Management. Apply the full $24.95 pay-per-view cost toward an annual subscription (within 30 days of purchase), which includes two issues a month plus access to more than six years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to ...