Acquisition lull interrupted by Vallen purchase
By Industrial Distribution Staff -- Industrial Distribution, 12/1/1999
Dutch giant Hagemeyer NV is on a roll. The firm took out two of ID's Top 100 members within five days last month. On Nov. 12, it purchased Tristate Electrical & Electronics Supply Co., No. 44 in the 1999 Top 100. Five days later, Hagemeyer acquired Vallen Corp. for about $201 million, or $25 a share.The purchase of Vallen, No. 22 in ID's Top 100 with 1998 sales of $364 million, could be the start of long-awaited consolidation among the larger players in the MRO sector. While consolidation has been rampant among midsize firms, very little activity has occurred among the larger firms.
"We have great respect for the Hagemeyer organization," said Jim Thompson, president of Vallen. "Our industry-leading team of associates will provide a platform to continue to grow the business after the transaction, with exciting new opportunities for Vallen as a key part of a vibrant multinational group."
Also at press time, Kennametal Inc. announced it was considering selling off JLK Direct Distribution, the distribution subsidiary it purchased in 1997. JLK had 1998 sales of $425.3 million.
"JLK is a leading distribution company with strong financial performance and many opportunities to grow..." said Kennametal president Markos I. Tambakeras. "However, we believe that Kennametal may not be the best owner for JLK."
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