Three machine tooldistributors merge
By Staff -- Industrial Distribution, 11/1/1998
Farmington, Conn.--Consolidation is picking up in the machine tool sector. Ellison Machinery Co., The Robert E. Morris Co. and Hartwig, Inc. announced plans to merge on Oct. 1, creating the largest distributor of factory automation equipment and machine tools in North America. When the deal is completed in the fourth quarter of 1998, the new company will have revenues of $600 million.Executives from all three companies say the merger is a natural business progression stemming from years and years of cooperation and interaction between the three companies.
"The combination of Ellison, Morris and Hartwig is not a buyout or cost-cutting move typical of industry consolidations," says Lee B. Morris, chairman of The Robert E. Morris Co. "It is a strategic alliance to address the growing need for trans-regional ... even trans-continental services."
The Robert E. Morris Co. is the largest of the group, reporting sales of $242 million in ID's 1998 Top 100 that appeared in June. Ellison did not respond to last year's survey, but reported sales of $200 million in the 1997 study.
Jim Ellison, chairman of Ellison Machinery Co., will serve as the new firm's chairman. Morris will serve as president, and John B. Bowen, current president of the Robert E Morris Co., will become chief financial officer. Gary Hart-wig, president of Hartwig, will act as executive vice president and director.
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