CHICAGO, Jan. 10 /PRNewswire-FirstCall/ -- Grainger, North America's
leading supplier of facilities maintenance products, today announced its Lab
Safety Supply subsidiary has signed a definitive agreement to acquire AW
Direct, Inc., a leading direct marketer of products to the $3 billion service
vehicle accessories market. AW Direct sells general towing and work truck
equipment and accessories to customers in the auto service, utilities,
government, and construction markets. Grainger expects the acquisition to
close, subject to standard conditions, in the 2005 first quarter and be
accretive within a year. No other terms of the agreement were disclosed.
AW Direct will be operated as a wholly owned subsidiary of Lab Safety
Supply, the premier direct marketer of targeted, specialty businesses in the
safety, industrial, environmental, and homeland security markets. Through a
similar direct marketing model, AW Direct has successfully grown its business,
and in 2004 had annual sales of more than $28 million.
Grainger Chairman and Chief Executive Officer Richard L. Keyser said, "We
plan to accelerate Lab Safety's growth by finding premier direct marketing
companies to grow Lab Safety's market position. AW Direct offers access to
new markets that we can serve with many of Lab Safety's existing products and
targeted media. This transaction is similar to Lab Safety's successful
acquisitions of Ben Meadows and Gempler's, which have provided new growth and
diversification of Lab Safety's customer base."
AW Direct, Inc., is a privately held company headquartered in Berlin,
Connecticut. Lab Safety expects to retain many of AW Direct's management,
customer service and other employees located at its facility in Berlin.
Larry J. Loizzo, president of Lab Safety, said, "We are pleased with the
addition of the AW Direct brand to our array of targeted specialty catalogs.
They have provided their customers with a quality product offering and high
levels of service. We look forward to working with the employees of AW Direct
in our efforts to grow this business."
W.W. Grainger, Inc. (NYSE: GWW), with 2004 sales of $5 billion, is the
leading broad line supplier of facilities maintenance products serving
businesses and institutions throughout North America. Through its network of
nearly 600 branches, 17 distribution centers and multiple Web sites, Grainger
helps customers save time and money by providing them with the right products
to keep their facilities running.
This document contains forward-looking statements under the federal
securities laws. The forward-looking statements relate to the Company's
expectations and are not historical facts. They are generally identified by
qualifiers such as "expects," "will," "intends," "plans," "look forward,"
"should," or similar expressions. Since these forward-looking statements are
based on factors that involve risks and uncertainties, actual results may
differ materially from those expressed or implied by such forward-looking
statements. Such factors include, among others: the ability to complete the
acquisition and successfully integrate the AW Direct business; higher product
costs or other expenses; a major loss of customers; the inability of Lab
Safety to successfully market its existing products to the AW Direct customer
base; general economic conditions; increased competitive pricing pressure on
the AW Direct business; and the failure to develop or implement new
technologies or other business strategies. 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 of
various factors that may affect it.
SOURCE W.W. Grainger, Inc.
CONTACT: William D. Chapman, Director, Investor Relations,
+1-847-535-0881, or Robb Kristopher, Manager, External Communications,
+1-847-535-0879, both of W.W. Grainger, Inc.