Grainger Intends to Acquire Fabory Group

Printer Friendly Version View printer-friendly version
<< Back

- The transaction price will be approximately $344 million (euro 242 million) and is expected to be accretive to 2012 earnings.
- Grainger will host a live webcast at 10:00 a.m. EDT today to discuss this announcement.

CHICAGO, Aug. 15, 2011 /PRNewswire via COMTEX/ --

Grainger (NYSE: GWW) today announced its intention to acquire the shares of Fabory Group, a leading European distributor of fasteners and related MRO products. The transaction price will be approximately $344 million (euro 242 million). The parties plan to enter a definitive agreement upon completion of required consultations with Works Councils representing Fabory employees in the Netherlands, Belgium and France. The transaction is subject to customary closing conditions and is expected to be completed in the third quarter of 2011.

Fabory is headquartered in Tilburg, the Netherlands, and is the fastener market leader in the Netherlands and Belgium. With 2010 sales of ~$300 million (euro 211 million), Fabory offers its 120,000 customers access to more than 80,000 products in 14 countries. The company has been aggressively expanding its MRO and fastener offering throughout Central and Eastern Europe and also provides supply chain fastener solutions to OEM customers in Europe, North America and China as well as through a joint venture in India through Sterling Fabory Ltd.

"Fabory provides a unique opportunity for Grainger to enter one of the world's largest MRO markets through an established and growing business," said Jim Ryan, Grainger Chairman, President and Chief Executive Officer. "Fabory brings expertise as a fastener specialist to amplify Grainger's product offering, while Grainger's scale and supplier network will help accelerate further growth of Fabory's business."

Grainger intends for Fabory to continue as a separate business maintaining the Fabory name and brand. Oswald van den Belt, Chief Executive Officer of Fabory Group, will continue to lead the business and report to Court Carruthers, Senior Vice President and President, Grainger International.

"Known as the Masters in Fasteners, Fabory's demonstrated expertise in fastener products in MRO and OEM applications will benefit all of our businesses," Carruthers said. "We look forward to supporting Fabory's plans for expansion and working together to continue enhancing our fastener expertise around the world."

"We are delighted to join Grainger, the world's leading distributor of industrial supplies with demonstrated supply chain expertise, culture of service and an unmatched product offering," van den Belt said. "Our ability to leverage each other's strengths will create a winning partnership to reach more customers with the best product offerings."

Webcast

Grainger will conduct a live webcast at 10 a.m. Eastern Daylight Time (EDT) on Monday, August 15, to discuss the Fabory acquisition. The webcast will be hosted by Jim Ryan, along with members of the executive team at Grainger, and can be accessed at www.grainger.com/investor. For those unable to participate in the live event, a webcast replay will be available for ninety days on the company's web site, www.grainger.com/investor.

About W.W. Grainger, Inc.

W.W. Grainger, Inc., with 2010 sales of $7.2 billion, is North America's leading broad line supplier of maintenance, repair and operating products, with expanding operations in Asia and Latin America. For more information about the company, visit www.grainger.com/investor.

About Fabory Group

Fabory Group is a leading distributor of fastening products with more than 120 locations in 14 countries and more than 1,600 employees. The company's product range comprises more than 55,000 fasteners in all shapes and sizes, a range of chemical products (tapes, adhesives and sealants) and related hand and power tools.

Forward-Looking Statements

This document contains forward-looking statements under the federal securities law. The forward-looking statements relate to the company's expected future financial results and business plans, strategies and objectives and are not historical facts. They are generally identified by qualifiers such "expect," "plans," "will," or similar expressions. There are risks and uncertainties the outcome of which could cause the company's results to differ materially from what is projected. The forward-looking statements should be read in conjunction with the company's most recent annual report, as well as the company's Form 10-K and other reports filed with the Securities & Exchange Commission, containing a discussion of the company's business and various factors that may affect it.

SOURCE W.W. Grainger, Inc.


Stock Quote

GWW (Common Stock)
ExchangeNYSE (US Dollar)
Price$299.28
Change (%)0.00 (0.00%)
Volume0
Data as of 01/17/19 4:00 p.m. ET
Refresh quote
  • Questions? Call us
    1-800-Grainger
  • (472-4643)
Sign Up for Email
  • Get industry news,
    new product information,
    helpful tips and more.
  • Connect With Us
Home  |   Terms of Access  |  Terms of Sale  |  Return Policy  |  Privacy Policy  (Rev. June, 2013)  |  About our Ads  |  Sitemap
© 1994 - 2014 W.W. Grainger, Inc. All rights reserved.