The 2020 Mid-Year Economic Update_long

News Digest 3607

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Parker Hannifin Corporation has acquired a 70 percent stake in Japan-based Kuroda Pneumatics Ltd., a subsidiary of Kuroda Precision Industries Ltd. Kuroda had 2005 sales of about $50 million. Roger Sherrand, president of Parker’s Automation Group, says the transaction strengthens Parker’s automation business capabilities so it can better serve the Japanese marketplace. Parker plans to use the company as a platform for growth in the region.

84 Lumber, a $3.92 billion building materials distributor, recently announced a three-year strategic plan with the aim of $10 billion in sales by 2009. Among the key initiatives: opening 125 new locations, adding 1,000 outside sales reps, increasing manufacturing, and increasing sales to large, national production builders. The company plans to close 67 stores in no-growth or rural markets that have either matured or never reached their projected housing starts potential. 84 Lumber has more than 500 locations nationwide, including 19 component-manufacturing facilities.

Industrial distributor MSC Industrial Direct Co., Melville, NY, sales increased 12.7 percent to $305.9 million in the second quarter of fiscal year 2006, compared with $271.4 million in the same period last year. Profit for the second quarter rose 21.6 percent to $33.3 million versus $27.4 million a year ago. MSC recently announced it would acquire J& L Industrial Supply from Kennametal. More …

MRO distributor Strategic Distribution Inc., Bristol, PA, reported revenues of $36.7 million for the fourth quarter 2005, up 15 percent from the same period the year before. Annual revenues for 2005 were up 12 percent to $136.9 million compared with $121.9 million in 2004. For the fiscal year 2005, the company recorded a $3.4 million loss, compared with a $2.621 million loss in 2004, a 31 percent difference. The company recorded a net loss for the fourth quarter of $366,000. That’s a 255 percent larger loss than in the same period last year when the company recorded a $103,000 loss. More …

Tools and Metals Inc. Former President and CEO Todd Loftis was sentenced to 87 months in jail and ordered to pay $20 million in restitution March 27, 2006, after pleading guilty to conspiracy to defraud the U.S. government with false and fraudulent claims. Loftis defrauded the government by overcharging Lockheed Martin Aerospace at least $18 million for MRO supplies it used in Department of Defense contracts at three plants. More …

Stock Building Supply, Raleigh, NC, Wolseley’s $4.1 billion supplier of building materials in the U.S., has acquired $92.2 million Home Lumber Company, San Bernardino, CA, with $92.2 million in annual sales. “Home Lumber is located in one of the most robust economies in the United States,” says Fenton Hord, Stock president and CEO. “The company has been a consistently strong performer for many years.” Founded in 1947, Home Lumber’s product mix includes lumber, OSB and plywood, engineered wood products and miscellaneous building materials. More …

Applied Industrial Technologies, Cleveland, OH, has acquired Minnesota Bearing Company, a $35 million distributor of bearings, power transmission and related specialty products headquartered in Minneapolis, MN. Applied acquired all divisions of Minnesota Bearing, which include Iowa Bearing Company, Western Bearing & Supply Company, and Nebraska Bearing Company, as well as Air-Hydraulic Systems, Inc., a full-service provider of hydraulic and pneumatic components and systems. More …

Airgas Inc., Radnor, PA, has acquired Byrne Specialty Gases, Inc., a Seattle, WA-based distributor of specialty gases, related equipment and cryogenic storage systems for the life sciences sectors in the Pacific Northwest. The acquired operations, including two facilities in Seattle and Vancouver, WA, generated more than $10 million in sales last year. Airgas will run the business as a dedicated unit within Airgas Nor Pac, focused on specialty gases and life science sectors in the Northwest. It is one of 13 regional companies within Airgas. More …

Carlson Holdings Inc., Omaha, NE, parent of distributor Carlson Systems, has acquired Mid-Atlantic Fasteners, a distribution company for the fastening and packaging industries. Mid-Atlantic Fasteners has 23 sales offices and distribution centers in Delaware, Maryland, North Carolina, Pennsylvania, South Carolina and Virginia, with its corporate offices located in Jessup, Maryland. The acquisition of Mid-Atlantic Fasteners expands the Carlson territory into the Eastern U.S. More …

Industrial distributor Lewis-Goetz and Company, Inc., Pittsburgh, PA, has agreed to acquire Goodall Rubber Company, from Trelleborg AB, a Swedish manufacturing firm. The company expects to close the acquisition on April 28, 2006. This marks the 12th acquisition in the past 21 years for Lewis-Goetz. The acquisition expands Lewis-Goetz’s scope into much of the Canadian market as well as the Gulf Coast, Midwest and the West Coast. The combined revenues of the two companies will likely exceed $200 million. More …

Gates Corporation, Denver, CO, has acquired an equity stake in CoLinx, LLC which provides e-business and logistics services. Gates will use CoLinx logistics services in all CoLinx locations in the U.S. and Canada. More …

Kennametal Inc. has signed an agreement with Suncraft International Corp. to sell Kennametal’s UK-based Presto brand high speed steel assets. The disposition of these assets is in line with Kennametal’s recently announced intention to accelerate its manufacturing rationalization opportunities. The sale is expected to close by Jun. 30. Suncraft will acquire the UK assets and manufacturing operations of the business in Sheffield, England.

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