The 2020 Mid-Year Economic Update_long

MDM News Digest 3614

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Two subsidiaries of massive building materials supplier Pro-Build Holdings have announced acquisitions. Brooklyn, NY-based Strober Building Supply has purchased millwork and kitchen specialist Rowley Building Products, Middleton, NY, and its sister company, construction financing business Builder’s Capital LLC. The Contractor Yard, Charlotte, NC, acquired Building Materials Wholesale/Retail Inc., a supplier of drywall and related products also in Charlotte.

Kennametal Inc., Latrobe, PA, has recently increased its ownership in its Italian and Spanish affiliates. This grows Kennametal’s ownership in Kennametal Italia S.p.A. from 55 percent to 66 percent and in Kenci S.A. from 43 percent to 53 percent. Kennametal Italia serves the Italian metalworking market via a service center and operates a manufacturing facility that provide products for Kennametal’s global network. Kenci serves the metalworking market in Spain and Portugal. More …

wholesale sectors registered gains, more than half the increase was attributable to higher sales in the automotive sector. Building materials sales also contributed to the gain. More …

Reliance Steel & Aluminum Company, Los Angeles, CA, has agreed to acquire Yarde Metals Inc., a metals service center based in Southington, CT. Yarde had sales of $385 million in the fiscal year ended June 30, 2006. Yarde was founded in 1976 and specializes in the processing and distribution of stainless steel and aluminum plate, rod and bar products. Reliance also reported a 91 percent gain in sales for the second quarter and an increase of 105 percent in net income. The sharp gains were due in part to the acquisition of Earle M. Jorgensen Company April 3, 2006. More …

The Home Depot Supply subsidiary Williams Bros. Lumber, Suwannee, GA, has acquired Forest Products Supply Inc., Sarasota, FL. The purchase is William Bros.’ second this year in Florida. Williams Bros. recently purchased Cox Lumber Co., with $396 million in sales in 2005. That acquisition nearly doubled the size of Williams Bros. and extended its reach into key growth markets in Florida and the Southeast. Forest Products Supply operates primarily in the Sarasota area. More …

W.W. Grainger, Chicago, IL, reported an 8 percent increase in sales for the second quarter ended June 30, 2006. Sales were $1.5 billion versus $1.4 billion in the same period last year. Profit was up 15 percent to $94 million. Sales for the six months ended June 30, 2006, were $2.9 billion, up 7 percent versus the same period last year. Net earnings increased 17 percent to $180 million. More …

The Fastenal Company, Winona, MN, reported sales increased 19.7 percent in the second quarter 2006 over the same period in 2005. Sales totaled $458.8 million for the three-month period ended June 30, 2006. Profit increased 15.4 percent. Sales for the six-month period ended June 30 totaled $890.5 million, an increase of 20.8 percent over sales in the same period in 2005. Profit increased 21.7 percent. More …

Barnes Group Inc. sales grew 10 percent to $308.9 million in the quarter ended June 30, 2006. Profit was $18 million, up slightly from the $17.6 million in the same period last year. Barnes Distribution sales grew 11 percent, driven by increases in Barnes Distribution North America as a result of increases in Corporate Accounts, up 11 percent, and Tier II, up 33 percent, along with increased selling prices. More …

Watsco Inc., Coconut Grove, FL, distributor of air conditioning and heating products, reported revenues grew 16 percent to $512 million for the second quarter ended June 30, 2006. Revenues grew 15 percent on a same-store basis. Net income was up 28 percent to $28.7 million. For the six months ended June 30, 2006, revenues grew 15 percent to $906 million, with revenue growth of 14 percent on a same-store basis. Net income was up 32 percent to $41.8 million. More …

Illinois Tool Works, Glenview, IL, has acquired two manufacturers, BagCo Inc., a provider of plastic recloseable packaging for the industrial, medical and consumer markets, and Kester Inc., a supplier of solder and related materials for electronic and microelectronic assembly suppliers.

Global electrical distributor The Rexel Group has agreed to buy GE Supply, GE’s electrical distribution business, for $725 million. After the acquisition, GE Supply will operate as a stand-alone subsidiary of Rexel. The acquisition will nearly double Rexel’s revenues in the U.S. GE Supply has $2.2 billion in pro forma annual sales; Rexel posted $2.5 billion in sales in 2005. More …

UK-based Wolseley, parent of Ferguson and Stock Building Supply, has agreed to acquire DT Group, a distributor of building materials with operations in Denmark, Finland, Sweden and Norway, from CVC Capital Partners for 1.498 billion euros, or $2.48 billion, including the assumption of net debt. DT Group’s EBITDA was $212.87 million, putting the acquisition price at about 11.6X EBITDA. About 80 percent of DT Group’s sales are through builders’ merchants to trade professionals, 13 percent to the DIY market, and 7 percent to the wholesale market. More …

Citing high debt levels and rising prices for aluminum and other raw materials, ladder maker Werner Co., Greenville, PA, and its affiliated companies have filed for Ch. 11 bankruptcy protection. In papers filed in U.S. Bankruptcy Court in Delaware, Werner reported audited net sales of $472.3 million for the year ending Dec. 31, 2005. As of March 31, 2006, Werner reported assets of $201 million and liabilities of $473.4 million. Werner is highly-leveraged and is facing the maturity of significant portions of debt in its current capital structure. At the same time, Werner is undergoing significant operational restructuring, including transferring operations to a new facility in Juarez, Mexico. More …

Motion Industries, Inc., Birmingham, AL, distributor of industrial maintenance, repair, and operation (MRO) replacement parts, has acquired Lewis Supply Company, Memphis, TN. The acquisition is the company’s biggest foray yet into the industrial supply sector. Motion purchased Wichita, KS-based general-line distributor Hub Supply Inc. in 1998. Lewis Supply’s general mill supply product offering includes casters, cutting tools, fluids, machinery accessories, power transmission, material handling, precision measurement and safety products. The company also provides integrated supply capabilities. More …

Genuine Parts Company, Atlanta, GA, announced its second-quarter sales totaled $2.7 billion, up 8 percent from the second quarter of 2005. Profit was $120.7 million, an increase of 9 percent from the same period in 2005. For the six months ended June 30, 2006, sales totaled $5.2 billion, up 8 percent from the same period in 2005. Profit for the six months was $234.6 million, an increase of 8 percent. Business segment Motion Industries grew sales by 10 percent. More …

US Electrical Services LLC, Chester Springs, PA, has agreed to purchase Wiedenbach-Brown Co. Inc., Westchester County, NY. WB brings USESI, which is being pieced together by former Sonepar chief Richard Worthy, national account expertise in lighting and electrical supply. It has offices in Hicksville, New Rochelle and Hawthorne, NY; Boston; Columbus; Kansas City; Los Angeles; and Seattle. The acquisition will be Worthy’s third this year. More …

Canada wholesale revenues rebounded 0.9 percent in May to $41.8 billion, after declining 0.3 percent in April. While most of the seven

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