In the latest issue of MDM Premium, staff writer Angela Poulson provides an in-depth look at industrial distributor MSC Industrial Supply’s agreement to acquire the North American distribution operations of Barnes Group. The deal is expected to close in late March or early April. Industry watchers have said the two companies complement each other, and MSC stands to benefit on several fronts.
Here are three key expected impacts of the deal, as outlined by Poulson in the article:
1. Vending and vendor-managed inventory become primary growth drivers for MSC. Nearly 95 percent of Barnes Distribution’s North American business is attributed to VMI programs, and MSC is expected to use that expertise to supplement its own sales and marketing knowledge and efforts in vending.
2. MSC will significantly increase its presence in Canada. Barnes Distribution already had a presence in Canada, and with this acquisition, MSC joins other large public industrial distributors who have already invested strongly in the market.
3. Cross-selling opportunities will grow. Barnes Distribution and MSC have very little overlap in terms of customers and products, with MSC focused on A and B items and Barnes focused on class C items. With the acquisition, for example, MSC will now compete more strongly in fasteners, a segment it had not previously focused on.
Read more about the impact of the planned MSC-Barnes deal in the latest issue of MDM.
As markets continue to consolidate and the largest distributors reach into new markets, another article in the latest issue of MDM Premium may be relevant to distributors looking to solidify their relationships with their customers to prevent competing on price. Read about best practices in documenting value-add in the article: How to Get Customers to Fight for You.
And finally, Jenel Stelton-Holtmeier writes a summary of MDM’s latest webcast, the Link Between Business Intelligence and Profitability. The bottom line: Business intelligence can provide a great return on your investment, but it takes quality insight and the ability to take that insight and act on it to profit from a focus on data.
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