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MSC Industrial Direct Company Inc., one of the largest direct marketers and premier distributors of metalworking and maintenance, repair and operations (MRO) supplies to industrial customers throughout the United States, on November 10 announced that it has signed a definitive agreement to acquire the assets of Rutland Tool & Supply Company, a subsidiary of Lawson Products Inc., for approximately $11 million in cash. The acquisition is expected to close in the fourth quarter of calendar 2010, subject to customary closing conditions. The company will finance the acquisition using available cash, and expects the acquisition will become accretive to earnings in late-fiscal 2011 or early-fiscal 2012.
Based in Whittier, Calif., Rutland was founded in 1955 and markets and distributes a broad range of industrial tools, cutting tools, abrasives, machinery, precision instrument supplies, safety products and other MRO related supplies to over 20,000 customers. Customers have access to more than 100,000 items through multiple channels including web, showrooms, catalogs and sales flyers. Rutland's customer base includes industrial machine and metalworking shops, as well as maintenance and repair facilities. In 2009, Rutland generated revenue of $33.7 million.
David Sandler, president and chief executive officer of MSC, stated, "Rutland is a well-regarded West Coast metalworking distributor that adds to our presence in the region. We expect that this acquisition will enhance our West Coast build-out strategy and provide the opportunity for accelerated market share gains and further growth in sales and profitability."