The 2020 Mid-Year Economic Update_long

MDM News Digest 3701


Strategic Distribution, Inc., Bristol, PA, has agreed to be bought out by Platinum Equity in a deal worth $30 million. The deal stipulates that Strategic Distribution will merge with Project Eagle Holding Corp. and Project Eagle Merger Corp., each a Platinum Equity portfolio company. Strategic reported revenues of $136.9 million in 2005 and a net loss of $3.4 million. Platinum Equity has been busy in the industrial sector, recently buying Textron Fastening Systems for $630 million and PNA Group Inc., a $1.2 billion processor and distributor of steel products. More ...

Kennametal Inc., Latrobe, PA, has agreed to acquire Federal Signal ...

paper products. More …

Construction spending during November was estimated at a seasonally adjusted annual rate of $1,184.1 billion, 0.2 percent below the revised October estimate of $1,186.7 billion. The November figure is 0.1 percent above the November 2005 estimate of $1,183.1 billion. During the first 11 months of this year, construction spending amounted to $1,110.5 billion, 5.4 percent above the $1,053.4 billion for the same period in 2005. More …

Diversified industrial manufacturer Eaton Corporation, Cleveland, OH, has agreed to buy AT Holdings Corporation, the parent of Argo-Tech Corporation, for $695 million. Argo-Tech’s aerospace business, which had sales for the fiscal year ended Oct. 28, 2006, of $206 million, is a producer of aerospace engine fuel pumps and systems, airframe fuel pumps and systems, and ground fueling systems for commercial and military aerospace markets. More …

Ellison Technologies, Inc., Cleveland, OH, provider of engineered systems and industrial equipment to metal-working and metal-cutting manufacturers, has acquired Jackson Machinery Company, a privately held distributor based outside of Cleveland. The acquisition provides Ellison a stronger position in northern Ohio, a strong manufacturing base. More …

Reliance Steel & Aluminum Co. has agreed to acquire the Encore Group of metals service center companies (Encore Metals, Encore Metals (USA), Inc., Encore Coils, and Team Tube) headquartered in Edmonton, Alberta, Canada. Encore specializes in the processing and distribution of alloy and carbon bar and tube, as well as stainless steel sheet, plate and bar and carbon steel flat-rolled products, through its 17 facilities located mainly in Western Canada. Encore’s sales for the 12 months ended Dec. 31, 2005, were C$254.8 million. More …

Brady Corporation, manufacturer of identification solutions and specialty materials, has expanded its manufacturing operations near Bangkok, Thailand, and in Penang, Malaysia, and has opened a new manufacturing center and shared services center in Bangalore, India.

Actuant Corporation, Milwaukee, WI, has purchased Veha Haaksbergen B.V. Headquartered in Haaksbergen, The Netherlands, Veha has sales of $5 million, including those to Actuant’s Enerpac, and manufactures machined products, including hydraulic cylinders.

The world economy has entered the early stages of a widespread slowdown that will significantly impact regions that are critical to&nbsp ; U.S. manufacturers, according to the MAPI Quarterly Forecast of&nbsp ; U.S. Exports, Global Growth, and the Dollar: Fourth Quarter 2006 Through Fourth Quarter 2008. Persistent strength in regional and global growth rates and a somewhat weaker dollar over the past 12 months are expected to lead to a solid 8.7% growth in&nbsp ; U.S. exports in 2006 when final data are released. &nbsp ; Export growth is predicted to be relatively unchanged during 2007, decelerating slightly to 8.6%, as the weaker dollar offsets concurrently weaker growth rates. A modest recovery in growth rates, especially in industrialized nations, is projected to propel export growth to 9.7% in 2008. &nbsp ; Growth in the industrialized countries, which includes , the Eurozone, and , will likely slow from an estimated 2.5% during the fourth quarter of 2006 to 2.2% during the first quarter of 2007.

The Home Depot‘s Bob Nardelli has resigned from his posts as president, CEO and chairman of the board as of Jan. 2, 2007. Frank Blake, the company’s executive vice president, succeeds him. The move comes amid criticism from investors over Nardelli’s pay and slow stock gains during his reign. The board also announced that CFO Carol Tome and head of the wholesale division, Joe DeAngelo, will be assuming additional responsibilities. DeAngelo was appointed to the newly created position of Chief Operating Officer. He will continue to oversee HD Supply and will assume additional responsibilities for the retail business. More …

Graybar, St. Louis, MO, distributor of electrical and communications products, reported $3.78 billion in sales through the first three quarters of 2006, an increase of 18.9 percent over the same period last year. Graybar’s net income of $46.7 million for the first three quarters is more than triple last year’s performance for the same period. This year, the company has opened several new locations and expanded its security product line, adding customers such as security dealers and installers.&nbsp ; More …

MSC Industrial Direct Inc., Melville, NY, distributor of MRO supplies to industrial customers, reported sales of $402 million for the first quarter 2007, an increase of 35.9 percent from the same period in fiscal 2006. Profit increased 26.2 percent to $40.3 million from the year-ago period. J & L Industrial Supply, purchased from Kennametal last year, accounted for two-thirds of the growth.&nbsp ; More …

Praxair Distribution, Danbury, CT, a division of Praxair Canada Inc., has acquired the Canadian propane tank-exchange business of Blue Rhino, a Ferrellgas Partners L.P. company. Praxair acquired more than 900 propane tank-exchange display cages at retail locations across Canada. More …

Airgas, Inc., Radnor, PA, has acquired CFC Refimax, LLC, a full-service refrigerant supplier and reclamation company based in Atlanta, GA. The business, which has about 50 employees, had about $21 million in sales in 2006. More …

Air Products, Lehigh Valley, PA, has agreed to acquire the industrial gas business of Central Europe-based BOC Gazy Sp z o.o. from Linde Gas for 370 million euros (US$481 million). For regulatory purposes, BOC Gazy was required to be sold by Linde as a result of its purchase of The BOC Group plc in September 2006. The BOC Gazy business had fiscal year 2006 sales of 126 million euros ($164&nbsp ; million).&nbsp ; The business has 750&nbsp ; employees, five industrial gas plants and six cylinder transfills. More …

Prices for manufactured goods in Canadaremained unchanged for a second consecutive month in November, while prices for raw materials increased after three months of significant declines. Prices charged by manufacturers, as measured by the Industrial Product Price Index (IPPI), were unchanged from October to November, as downward pressure from declining petroleum prices eased. Lower prices for primary metal products and petroleum products were offset by higher prices for chemical products, fruit, vegetables and feed products and pulp and

Strategic Distribution, Inc., Bristol, PA, has agreed to be bought out by Platinum Equity in a deal worth $30 million. The deal stipulates that Strategic Distribution will merge with Project Eagle Holding Corp. and Project Eagle Merger Corp., each a Platinum Equity portfolio company. Strategic reported revenues of $136.9 million in 2005 and a net loss of $3.4 million. Platinum Equity has been busy in the industrial sector, recently buying Textron Fastening Systems for $630 million and PNA Group Inc., a $1.2 billion processor and distributor of steel products. More …

Kennametal Inc., Latrobe, PA, has agreed to acquire Federal Signal Corporation’s cutting tool business comprised of Manchester Tool Company, ClappDiCO Corporation and On Time Machine, Inc. for $67 million. With annual sales of $40 million, the cutting tool business produces, markets and services super hard polycrystalline diamond and cubic boron nitride cutting tools, tool holding systems and certain specialized turning tools complementary to Kennametal’s product range. More …

Sonepar USA, Philadelphia, PA, has acquired Dallas, TX-based Crawford Electric Supply Company, Ltd. Crawford Electric had sales of $175 million in 2005, according to Electrical Wholesaling’s 2006 top 200 issue. The acquisition extends Sonepar USA’s reach into the fast-growing Texas market. The purchase is Sonepar USA’s seventh acquisition in less than two years.&nbsp ; More …

Another Sonepar company, Cooper Electric Supply Co., Tinton Falls, NJ, has acquired Fairview Electrical Supply Corp., Fairview, NJ. Cooper Electric serves the New Jersey, New York and Pennsylvania markets. This acquisition increases its presence to 30 locations in the tri-state area. More …

Border States, Fargo, ND, has agreed to buy Minnesota Electric Supply Company, a full-line provider of electrical products with eight locations in Minnesota and more than 3,000 customers. According to Electrical Wholesaling’s top 200, Border States had 2005 revenues of $601 million, and Minnesota Electric had sales of $78.3 million. More …

Hagemeyer has acquired BREVA, an electrical distributor of MRO products in Belgium. About 70 percent of BREVA’s sales go to industrial customers. BREVA gives Hagemeyer entrance to the Belgian market and will allow it to serve the Belgian subsidiaries of several of its large global industrial customers. More …

Philadelphia, PA-based Hajoca Corp. has agreed to buy Richards Plumbing, Heating & Industrial Supplies, Grand Rapids, MI. The 71-year-old CEO of Richards told the Grand Rapids Press&nbsp ; that he and his sons sold to the national plumbing and heating wholesaler because of growing national competition in that market. The firm has annual sales of about $25 million, according to the paper. More …

US Electrical Services, LLC, Exton, PA, has agreed to buy Hampden/Zimmerman Electric Supply Co., with three locations in central and western Massachusetts. The company has 80 employees. US Electrical Services is a distributor of electrical products and related services. More …

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