Jan 31, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Grainger, North America's
leading supplier of facilities maintenance products, today announced that its
Lab Safety Supply (LSS) subsidiary has signed a definitive agreement to
acquire substantially all the assets of Rand Materials Handling Equipment Co.
Rand is a national catalog distributor of warehouse, storage and packaging
supplies, part of the $80 billion material handling market. Grainger expects
the acquisition, which is subject to standard conditions, to close within the
week. No other terms of the agreement were disclosed.
Founded in 1972, Rand is located in Pawtucket, Rhode Island, and operates
a successful catalog direct marketing model and has grown its business to more
than $16 million in annual sales in 2005. It will become part of LSS, which
is the premier direct marketer of targeted, specialty brands including Lab
Safety Supply, Ben Meadows, Gempler's and AW Direct, and will operate out of
LSS' facility in Janesville, Wisconsin.
Grainger Chairman and Chief Executive Officer Richard L. Keyser said, "One
of the keys to LSS' long term growth strategy is to continue extending its
reach through strategic acquisitions like Rand. This transaction is similar
to LSS' three previous successful acquisitions, which have provided new growth
and diversification of LSS' customer base."
Larry J. Loizzo, president of LSS, said, "We are pleased with the addition
of the Rand Materials Handling brand to our array of targeted specialty
catalogs. They have provided customers with a broad material handling product
offering and solid service. Rand offers access to new customers and markets
that we can serve with many of LSS' existing products while increasing our
penetration in the material handling marketplace through our targeted media.
We are excited about the growth opportunities and synergies that Rand brings
to LSS' portfolio of businesses."
W.W. Grainger, Inc. (NYSE: GWW), with 2005 sales of $5.5 billion, is the
leading broad line supplier of facilities maintenance products serving
businesses and institutions throughout North America. Through a highly
integrated network including nearly 600 branches, 18 distribution centers and
multiple Web sites, Grainger's employees help customers get the job done,
saving them time and money by having 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," "growth opportunities," "synergies," 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 Rand's business; higher product costs or other
expenses; a major loss of customers; the inability of Lab Safety to
successfully market its existing products to Rand's customer base; general
economic conditions; increased competitive pricing pressure on the Rand's
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.
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.
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