Omaha, Neb.—The news from manufacturers and distributors has been of budgetary cuts, layoffs, closed locations and restructuring efforts. Precision Industries, however, announced the latest in a string of acquisitions and expansions with the purchase of certain assets of Bobker, which came under Chapter 11 reorganization.

Founded in 1931, Bobker is a regional distributor of bearings, power transmission and fluid power components with locations from Massachusetts to Virginia, said Precision Industries CEO Dennis Circo. Precision also acquired many of the Bobker associates and the Bobker divisions including Bobker export group, Eifler Electric and Biglow Industrial. Scott Carraher was named regional vice president of the Precision/Bobker group, which will include the existing branches in Lancaster, Pa., and Battle Creek, Mich.

With the acquisition, Omaha, Neb.-based Precision expanded into new territories. Circo said the Bobker acquisition dovetails with recent acquisitions in the Southeast.

In December 2001 Precision added The McGraw Group, a 130 year-old distributor of hydraulic and pneumatic components, machine tools, cutting tools, power transmission, MRO and material handling supplies with locations across North Carolina. This followed the acquisition of personnel and assets in the purchase of the Goldboro, N.C., branch of MR Snyder. In Greenville, S.C., the management and sales teams, formerly of Industrial Power Drives & Controls, have joined Precision Industries.

"Precision is pursuing strategic acquisitions throughout North America," said Circo. "We are actively seeking good independent distributors."

He said Precision also has expanded dramatically in 2001 with new branches opened in El Paso, Texas, Nashville, Tenn., and Lowell, Ark. The Lowell branch, opened in November, is staffed by six associates serving key accounts such as Tyson Foods, Simmons Foods and Jet-Stream Plastics.

Precision is one of the few distributors making acquisitions or expanding during these tough economic times.

"Precision is not immune to the effects of the slow economy," said Circo. "Nonetheless, we have been able to dramatically reduce costs, provide a 20 percent reduction of debt and significantly liquidate our inventory."

The acquisitions and branch openings were strategic to gaining new integrated supply agreements, said Circo. He said he expects to finalize an integrated supply agreement with a major food corporation covering 160 facilities and entailing approximately $60 million in annual sales.

Other major contracts include the recent signing of five-year integrated supply agreements with a major food & ingredient manufacturer and an office supply manufacturer for nearly $100 million each, added Circo.