MSC Industrial Direct Agrees To Acquire ATS Industrial Supply

The acquisition is expected to close on January 31, 2012, subject to the satisfaction of customary closing conditions.

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MELVILLE, N.Y. -- MSC Industrial Direct, one of the premier distributors of Metalworking and Maintenance, Repair and Operations ("MRO") supplies to industrial customers throughout the United States, announced that it has signed a definitive agreement to acquire the assets and assume certain liabilities of ATS Industrial Supply, Inc. Terms of the transaction were not disclosed.

The acquisition is expected to close on January 31, 2012, subject to the satisfaction of customary closing conditions. The company will finance the acquisition using available cash. The company also expects that the acquisition will be minimally dilutive by approximately $0.01 or $0.02 per share in fiscal 2012 including integration and acquisition expenses, and will be $0.02-$0.03 per share accretive to earnings in fiscal 2013 and increase further over time.

Established in 1970 and headquartered in Salt Lake City, UT, ATS Industrial Supply, Inc. is a leading metalworking and MRO industrial distributor in the Rocky Mountain region with over 40 years' experience distributing a broad range of industrial tools, cutting tools, abrasives, machinery, precision instrument supplies, and other MRO-related supplies to a large customer base ranging from small machine shops and fabricators to some of the largest aerospace and manufacturing concerns in the country. ATS Industrial Supply, Inc. serves its customers from locations in Salt Lake City, UT, Phoenix, AZ, and Tijuana, BC, Mexico. The company generated approximately $34.5 million in sales in 2011.

David Sandler, Chief Executive Officer of MSC, stated, "We are pleased to acquire ATS Industrial Supply, Inc., a regional leader with excellent management and an emphasis on value-added services that fits well with the MSC model. In keeping with our long-term acquisition strategy, ATS builds out our geographic footprint, significantly increasing our presence in the Rocky Mountain region, while further extending our leadership position in metalworking. We welcome their talented team of associates to the Company and look forward to working together to grow our combined businesses."

David Hellberg, CEO of ATS Industrial Supply, Inc., said, "We are thrilled to be joining MSC, one of the largest distributors of MRO supplies in the United States. We believe this transaction represents a great opportunity for our associates, customers and suppliers, and look forward to benefitting from MSC's position as a leading player in the marketplace."


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