JLK Direct acquires ATS & Strong Tool

By Staff -- Industrial Distribution, 5/1/1998

Latrobe, Pa.--Metalworking distributor JLK Direct Distribution Inc. enlarged its Southwest presence by acquiring ATS Industrial Supply and is expected to complete the buyout of Strong Tool Co.

Based in Salt Lake City, ATS Industrial Supply reported sales of $17.1 million last year and expects at least 15 percent growth this year. The company also has a Phoenix, Ariz. branch and is considered the leading metalworking distributor in the region, which is among the top North American markets, JLK president and CEO Michael Ruprich says.

"ATS has an excellent management team with a long-standing reputation and significant expertise in the field of metalcutting," he says. "Additionally, the Phoenix location will further strengthen our competitive position in this key metalworking market."

ATS President David Hellberg says the acquisition will benefit his customers and 35 employees. "We think it brings some very significant synergies to both companies," he says. "It gives us access to a much broader array of services and products than we've had in the past and we bring a high degree of technical and managerial experience to JLK."

As of April 1, Hellberg became general manager and two longtime ATS veterans, Paul Pearson and Chris Connelly, were also retained to manage operations in Salt Lake City and Phoenix, respectively.

At press time, JLK had also signed an agreement with Strong Tool Co. and formally notified the Justice Department of the planned merger. Ruprich doesn't expect any opposition from federal officials.

With 11 branches across the Midwest, primarily in Indiana and Ohio, Strong Tool attracted JLK with its vast customer network and several large integrated supply contracts. Strong Tool reported 1997 sales of $65 million and president Robert Kraisner says he expects revenues of $80-85 million this year.

JLK Direct is the parent company of J&L Industrial Supply Co. of Livonia, Mich., which has 33 branches. Cutting tool and abrasives manufacturer Kennametal Inc. owns 80 percent of JLK. In March, Kennametal offered stock worth $173 million to help pay off debts from its own recent acquisitions.

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