Wheeling, IL-based DGI Supply — No. 35 on Industrial Distribution's Big 50 List — has announced that it plans to purchase San Leandro, CA-based Coast Tool Industrial Solutions, a distributor of cutting tools and MRO supplies that also has a location in Fresno, CA.
The deal is expected to close on Aug. 26, though no terms were disclosed.
According to its website, Coast Tool carries most market leading brands of cutting tools, abrasives, lubricants and coolants, inspection equipment, machine tool accessories and storage solutions.
“Combining Coast Tool’s inventory will improve fill rates, and adding their vehicles and routes will broaden our existing delivery capability," said DGI Supply COO Bill Henricks. "Additionally, the Coast customer service team will join a larger group in Northern California adding buying power, additional lines, business systems, vending and overall strength to its value proposition.”
DGI said it plans to maintain Coast Tool's Fresno location and move its San Leandro facility into a new, larger facility there shortly after the acquisition closes.
“Coast Tool has built a reputation for providing a high level of service to its customers. We hope to expand upon that service while expanding DGI Supply’s reach and depth in Northern California,” said Jeff Waller, DoALL Company president.
Coast Tool Company was founded in 1945 and acquired in 2013 by family-owned industrial supplier Toolmex Industrial Solutions.