Major merger & acquisition activity finally slowed after several weeks of consistent action, though company's internal news made up for it this past week on ID. Sandvik ousting its CEO, Grainger's latest monthly sales report, and a call for resignations at Airgas were each of high interest. M&A news surely will pick back up at any time.
Here's this week's Top 5:
Sandvik Fires CEO: Swedish cutting tools and mining equipment manufacturer Sandvik announced Aug. 10 that it has replaced company President and CEO Olof Faxander. Björn Rosengren, currently President and CEO of Wärtsilä Corporation, a Finnish ship-engine builder, will succeed Faxander effective Nov. 1. Faxander, had been the President and CEO of Sandvik since 2011. "The change of President and CEO was initiated by the Board and should be viewed as a next step in Sandvik’s further development," said Johan Molin, Sandvik Chairman. According to Bloomberg, the change comes after a major leadership reshuffle in AB Industrivaerden, Sandvik’s largest owner, following reports of alleged misuse of corporate jets
See The Capabilities Of Motion Industries' Distribution Centers: This video by Motion Industries shows its logistical network of distribution centers, as well as its vast inventory of value-added services provided to its customers and branches.
Grainger July Sales Dip As Canadian Business Continues Slump: No. 3 on Industrial Distribution's 2014 Big 50 List, Grainger reported its sales update for the month of July on Wednesday. Though the company didn't share dollar amounts per its usual monthly reporting, it said it had a 1 percent sales decline vs. July 2014, which included a negative 4 percentage point impact from currency headwinds, offset by a 1 point gain from acquisitions. Excluding those two factors, organic sales increased 2 percent, driven by 3 percentage points from volume, and offset by a 1 percentage point decline in price. Grainger's U.S. sales increased 1 percent, comprised of 1 percentage point from volume and 1 point from sales to Zoro U.S., the company's single channel online business. The sales were offset by a 1 point decline in price. "Price continues to be pressured by faster growth with lower margin customers," Grainger said in a release.
Teamsters Call For Director Resignations At Airgas: A majority, 53 percent, of Airgas shareholders voting in last director elections withheld support from three independent board members standing for re-election. Excluding the shares held by board members and executive officers, the "no" vote was 62 percent of shares cast or more than 51 percent of total outstanding shares. "Airgas investors have lost confidence in the leadership of this company," said Ken Hall, General Secretary-Treasurer of the International Brotherhood of Teamsters, a long-term Airgas shareholder and representative of Airgas employees throughout the U.S. "These directors should resign from the board immediately to make way for new directors who will be responsive and accountable to the shareholders they are elected to represent." Directors James Hovey, Paula Sneed and David Stout received only 47 percent support in the uncontested election. Significant support was also withheld from Airgas CEO Michael Molinini, who received 60 percent support. Because Airgas does not require majority support in uncontested director elections, each board member has been re-elected. Outside Aug. 5's shareholder meeting in Philadelphia, Teamsters protested the company's deteriorating labor relations and discriminatory pay practices, warning that an escalating labor dispute could lead to service disruptions for hospitals and other health care providers across the country. Teamsters also questioned the company about these concerns inside the annual meeting.
Stellar Industrial To Expand Further With Graffams Industrial Acquisition: Stellar Industrial Supply continues on the acquisition trail, as the Tacoma, WA-based industrial distributor announced Aug. 10 its intent to acquire certain assets of San Luis Obispo, California-based Graffams Industrial Supplies. Terms were not disclosed for the deal scheduled to close during Stellar's fiscal fourth quarter. Located roughly halfway between San Jose and Los Angeles along the coastline, the San Luis Obispo location gives Stellar a stronger foothold in the California market. It also has a location near the Los Angeles market in Upland. Graffams is a distributor of metal working and MRO products to a broad range of industries throughout California, and a Sandvik Coromant distributor.