MDM News Digest 3813 - Modern Distribution Management

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MDM News Digest 3813

Paris-based electrical distributor Rexel completed the sale of parts of Hagemeyer to Sonepar ahead of schedule, completing the deal June 30. Rexel also sold its German business to Sonepar in exchange for all of Sonepar's activities in Sweden. More
Stuart C. Irby Co., Jackson, MS, a subsidiary of Sonepar USA, has agreed to acquire Equity Utility Service Company, Marietta, GA. The acquisition will expand Irby's footprint in Georgia.  Equity is a distributor and manufacturers'agent offering products to electric utilities for their transmission and distribution requirements. More

Chandler, AZ-based Essco Wholesale Electric, ...
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Radnor, PA-based gases distributor and supplier Airgas, Inc. announced that beginning Aug. 1, 2008, or as contracts permit, it will raise prices on gases and equipment. Airgas attributed the increases to jumps in product costs from suppliers and rising operating costs. More
Real gross domestic product -the output of goods and services produced by labor and property in the U.S. -increased at an annual rate of 1 percent in the first quarter of 2008 (that is, from the fourth quarter to the first quarter), according to final estimates released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 0.6 percent. More
Canadian wholesale sales rose for the second consecutive month in April, largely as a result of increased demand in the personal and household goods and the machinery and electronic equipment sectors. Wholesalers sold $43.4 billion worth of goods and services in April for a gain of 1.4 percent. More
The manufacturing sector expanded in June following four months of contraction, according to the latest Manufacturing ISM Report On Business. The manufacturing sector showed a slight improvement in June as the PMI registered above 50 percent after four months of decline. According to ISM, manufacturers are experiencing higher prices for their inputs while demand for their products is slowing. More

U.S. distributors’overall sales of Power Transmission/Motion Control products declined 7.2% in May 2008 compared to April 2008, according to the latest month-end trend data from the Power Transmission Distributors Association. When matched up against sales in the same month last year, sales in May 2008 were up 1%. Canadian distributors also reported a decrease in PT/MC sales, dropping 5.4% in May 2008. Sales over the same period last year were down 6.8%. 

U.S. manufacturers’sales of Power Transmission/Motion Control products increased slightly in May 2008, with a 0.9% gain compared to April 2008. Sales in May 2008 climbed 3.8% compared to the same period last year. Canadian manufacturer’s sales declined significantly in May 2008 with a 10.3% loss compared to March 2008. Sales were down 11.1% when compared to the same period last year.

Companies reporting their business conditions as “thriving and growing”declined by nearly 10% in the past year, according to the third annual RSM McGladrey Manufacturing and Wholesale Distribution National Survey. The survey showed 80% of respondents are pessimistic about economic growth prospects, and the percentage of respondents describing their business as “declining”has tripled in the past two years. Building materials, transportation equipment, plastics, and printing and publishing are the industry segments most impacted by the housing crisis, reduction in consumer discretionary spending and high energy costs. More

MSC Industrial Direct Inc., Melville, NY, a distributor of metalworking and MRO supplies, reported sales in the third quarter 2008 ended May 31, 2008, rose 6.1 percent to $457.2 million over the third quarter 2007. Profit in the third quarter was $51.4 million, an increase of 12.3 percent. More

Atlanta-based Zep Inc., a producer of cleaning and maintenance products, reported sales of $145.2 million for the third quarter ended May 31, 2008, down slightly from $145.4 million in the previous year. Profit was down 94 percent. MoreParis-based electrical distributor Rexel completed the sale of parts of Hagemeyer to Sonepar ahead of schedule, completing the deal June 30. Rexel also sold its German business to Sonepar in exchange for all of Sonepar’s activities in Sweden. More
Stuart C. Irby Co., Jackson, MS, a subsidiary of Sonepar USA, has agreed to acquire Equity Utility Service Company, Marietta, GA. The acquisition will expand Irby’s footprint in Georgia.  Equity is a distributor and manufacturers’agent offering products to electric utilities for their transmission and distribution requirements. More

Chandler, AZ-based Essco Wholesale Electric, a subsidiary of Sonepar USA, has acquired Mountain Vista Supply, Sierra Vista, AZ. Essco Wholesale Electric operates 15 locations in Arizona and California. More

Chicago-based Grainger subsidiary Lab Safety Supply, Inc., has acquired Highsmith Inc., Fort Atkinson, WI. Highsmith is a distributor in the library equipment, furniture and supplies market. Highsmith is expected to add $20-30 million to Lab Safety Supply’s sales in 2008.  More
GE announced it is continuing to explore options for its Consumer &Industrial businesses with a primary focus on spinning-off the entire unit, which includes Appliances, Lighting and Industrial, to existing GE shareholders. The company announced on May 16 that a spin-off was one possible outcome of the strategic review of its Appliances division. “As we explored our options for Appliances, it became clear that the fastest, most efficient step we could take in completing the transformation of our Industrial portfolio would be to focus on a possible spin-off of the entire unit,”GE CEO Jeff Immelt said. More
The Dow Chemical Co. has agreed to buy specialty materials and chemicals supplier Rohm and Haas Company, Philadelphia, PA, for $78 per share in cash or $18.8 billion. Dow will contribute a number of specialty chemicals business segments to the Rohm and Haas portfolio and name. More

Norandex Building Materials Distribution
, Macedonia, OH, has acquired Area Vinyl Siding Distributors, LLC, a distributor of vinyl siding and accessories serving the greater Baton Rouge, LA, area. Area Vinyl’s two locations -in Walker, LA, and Gonzales, LA -will operate under the Norandex Building Materials Distribution name. More

Electronics distributor Avnet, Inc. has acquired Source Electronics Corp., Hollis, NH. Source will be integrated into the services operations of Avnet Logistics, a division of Avnet that delivers logistics and programming services globally.  More

Lewis-Goetz and Company, Inc
., Pittsburgh, PA, has acquired G&H Pumps and Compressors, Inc., a provider of pump repair and hydraulic services for trucks servicing the land-based oil and gas drilling market of the Shreveport, LA, and larger Texarkana region. More

Industrial Controls Distributors LLC
, Wanamassa, NJ, distributor of HVAC controls, process instrumentation and industrial automated valves in the Eastern U.S., has merged with Climactic Control Company, Milwaukee, WI.  More

Valley National Gases, LLC
, Independence, OH, has acquired Beaver Valley Welding Supply, Inc., Aliquippa, PA. The acquired business sells industrial, medical, and specialty gases, and welding equipment and supplies. Jeff Lyden, former owner, will remain with the business.  More

The Riverside Company
has acquired SPX Air Filtration Ltd., a subsidiary of diversified industrial manufacturer SPX Corp., Charlotte, NC. SPX Air Filtration manufactures and distributes air filtration products worldwide. The transaction will create a standalone company. More
Building trends have led two forest products companies in Idaho to merge. Bennett Forest Products and Riley Creek Lumber say in an Associated Press article they are doing so to strengthen ties to larger customers, including Home Depot and Lowe’s, to offset a recent fall in business from small contractors. More
Hicks Acquisition Company has agreed to buy Graham Packaging Holdings Co., York, PA, and then take it public with the Graham Group and The Blackstone Group in a transaction valued at $3.2 billion. The company will be renamed Graham Packaging Co. after the deal is completed and will be listed on the New York Stock Exchange. Blackstone has agreed to hold the largest ownership stake for at least two years. More
Swedish manufacturer SKF has agreed to acquire Waukegan, IL-based PEER Bearing Company and its manufacturing operations in Thailand and China. PEER, a manufacturer of deep-groove ball bearings and tapered roller bearings, will continue to operate as a standalone business. More
3M, St. Paul, MN, has acquired K&H Surface Technologies Pty. Ltd., an Australian-based manufacturing company specializing in repair products for the professional and do-it-yourself automotive refinish markets, including products and brands acquired from Bondo Corp. in 2007. More
Textron Inc.’s Greenlee business unit, Rockford, IL, has acquired UK-based Utilux, a manufacturer of electrical connectors and cable assemblies for electrical distributors and other European industrial segments. With this acquisition, Greenlee improves product offerings and capacity at its Klauke division, based in Remscheid, Germany.  More
Memphis, TN-based Thomas &Betts Corp. has sold its minority interest (29.1 percent) in Leviton Manufacturing Co., Little Neck, NY, back to the producer of electrical and electronic wiring devices for $300 million. Thomas &Betts is a manufacturer of electrical components used in industrial, commercial, communications and utility markets. The company is also a producer of commercial heating and ventilation units and highly engineered steel structures. More
WinWholesale Inc., Dayton, OH, has opened Stillwater Winlectric in Stillwater, OK, to provide residential and commercial contractors in the Payne County region of north central Oklahoma with electrical equipment, parts and accessories. More
Applied Industrial Technologies, Cleveland, OH, distributor of bearings, power transmission components, fluid power products, tools and industrial supplies, has launched its 2008/2009 catalog. The catalog has 4,000 new products, including the debut of DeWalt tools, plus more than 20,000 bearing and power transmission parts, more than 9,000 fluid power products, and an enhanced 48-page Technical Reference section that includes formulas, conversion tables, fluid power troubleshooting information and more.

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