Following a recent quiet period of M&A activity among large distributors, this past week ramped back up as Ohio Transmission Corporation was privately acquired, while Applied Industrial made an addition. Meanwhile, the Department of Labor said Fastenal discriminated against certain applicants, and Grainger is moving subsidiary operations in Wisconsin.
Here's this week's Top 5
Fastenal To Pay $1.25 Million To Settle Hiring Discrimination Lawsuit: In news that broke Thursday afternoon, the U.S. Department of Labor said that Fastenal – No. 12 on our 2015 Big 50 List – was found to have discriminated against 171 job applicants who sought general warehouse positions at two of its distribution facilities in Indianapolis and Atlanta. The Department of Labor's Office of Federal Contract Compliance Programs said that during its investigation, it found that Fastenal destroyed or failed to provide various employment records from both facilities in an alleged attempt to hinder the investigation. As a result, Winona, MN-based Fastenal has offered 171 job positions to applicants in Indianapolis and Atlanta, and will pay $1.25 million in back wages and interest to the 7,398 African American and 1,055 female job applicants affected. The OFCCP said Fastenal did not admit liability, and that the violations occurred while Fastenal received more than $35 million in government contracts for its products. The investigation covered the years 2011 and 2012.
Jack Keough - Wolseley Seeking Acquisitions, New CEO: ID contributing editor Jack Keough's latest blog discusses Wolseley's recent earnings report and conference call, where the company detailed internal improvement plans. Keough also touches on a report that Wolseley is searching for a new CEO.
Report - Grainger Relocating Up To 60 Wisconsin Jobs: According to a report last Friday by the Janesville Gazette, W.W. Grainger has confirmed the relocation of warehousing and distribution operations from its Green Bay subsidiary, Imperial Supplies, to its 320,000 square foot Janesville facility near the Wisconsin/Illinois border. The Gazette cites Grainger spokeman Joe Miccucci saying Green Bay-based subsidiary Imperial, an MRO supplier for the vehicle fleet market, is moving warehousing operations to the facility in eastern Janesville just off the I-90/BUS 14 Corridor at 401 S. Wright Road. Imperial reportedly has run out of space to grow warehousing and shipping at its Green Bay facility, while the Janesville location has "more than enough space." Miccucci told the Gazette that Imperial's warehousing/distribution transition to Janesville would be completed sometime in 2016, and that the operations would require about 60 workers. He said some workers could relocate from Green Bay, while others could be hired locally.
Ohio Transmission Acquired By Private Equity Firm IPC: New York City-based Irving Place Capital (IPC), a middle-market private equity firm, announced Oct. 2 that it has completed its acquisition of Ohio Transmission Corporation (OTC), a technical distributor of highly engineered motion control, pump and air compressor products, and No. 42 on the Big 50. Terms were not disclosed. Founded in 1963 and headquartered in Columbus, Ohio, OTC serves more than 11,000 customers across diverse end-markets. The company’s primary product offerings include pumps, bearings, power transmission, factory automation, and compressed air products and related services. OTC’s geographic footprint includes 23 branch locations in 12 states.
Applied Industrial Technologies Acquires Ohio's S.G. Morris: CLEVELAND, OH — Applied Industrial Technologies – No. 16 on the Big 50 – announced Oct. 2 that it has acquired S.G. Morris Co. (SGM), a distributor of fluid power components and provider of engineered fluid power systems. Terms of the sale were not disclosed. Founded in 1932, SGM has a team of 68 employees serving Industrial and Mobile customers from three locations – Cleveland and Toledo, Ohio, and Pittsburgh, Pennsylvania. SGM’s full suite of services – from selection of components to installation, startup and training – provides a one-stop-shop for all fluid power solutions. The company will operate as a subsidiary of Applied under the name S. G. Morris Co., LLC.