MELVILLE, N.Y. – MSC Industrial Direct, one of the premier distributors of Metalworking and Maintenance, Repair and Operations supplies to industrial customers throughout the United States, announced today that it has acquired American Tool Supply, Inc. ("ATS") and its affiliate, American Specialty Grinding Co., Inc.
The two companies together generate approximately $50 million in annual sales. Terms of the transactions were not disclosed.MSC will use some of its available cash for these transactions and expects the acquisitions in total will become approximately $0.02 to $0.03 accretive to earnings in fiscal 2012 and more accretive in succeeding years. The company also expects earnings dilution of approximately $0.01 per share in the fourth quarter of fiscal 2011, primarily due to the expenses related to the transactions.
David Sandler, President and Chief Executive Officer of MSC, stated, "We are very excited about acquiring American Tool Supply, Inc. and American Specialty Grinding Co., Inc. as yet another step in the execution of our long-term growth strategy. We've always had a lot of respect for their principals, Ray Fontaine, Jay Bath, and Rich Duplessie, the outstanding Team they have built as well as the value added capabilities of both ATS and ASG. Now, we bring together the best of both companies to add to our presence in the northeast region."
Rich Duplessie, Director of ATS, said, "This is a great opportunity for MSC, ATS and ASG, our associates, customers and our suppliers. Together, we will bring a depth and breadth of metalworking expertise, services and solutions to our customers that are unmatched in the industry. We are very excited about the growth opportunity in front of us."