According to a Form 8-K filed March 30 with the US Securities and Exchange Commission, Fastenal has purchased an undisclosed amount of assets from Apex Industrial Technologies, a provider of industrial vending solutions.
The 8-K stated that Fastenal and Apex have worked together since 2008 to develop a vending delivery platform that it calls the leading solution today in the industrial and commercial marketplace. Fastenal notes that Apex's contributions to this achievement have been to create and develop the software, design the equipment and build the vending equipment supply chain, while Fastenal brought industry expertise, a leading presence in the marketplace and a willingness to bring the platform to market.
The form said this 12-year collaboration has established a new platform within industrial and commercial supply chains, with more than 105,000 product dispensing and leased devices across 23 device types in 25 countries that generated more than $1.1 billion in sales in 2019.
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In connection with this transaction, Fastenal purchased a perpetual and unfettered use of key patents, designs, software and licenses, as well as direct access to the supply chain.
Terms and conditions of the transaction were not disclosed.
"Fastenal’s founder, Bob Kierlin, conceived of industrial vending at the company’s inception in 1967. Our relationship with Apex in 2008 helped to make the industrial vending solution scalable," Fastenal president and CEO said in the filed 8-K. "This transaction allows both organizations to move forward with their unique strategic plans while still providing an avenue for additional collaboration. I thank Kent Savage, Apex’s founder and CEO, for his partnership and contribution to our business over the last twelve years and wish him success as he focuses Apex’s energy on the food and retail sector.”
The 8-K quoted Savage: “Our collaboration with Fastenal has created a world-wide best practice for distributing MRO materials. Fastenal's adoption and deployment of automated dispensing technology combined with its singular fulfillment capabilities delivers tremendous efficiencies, productivity, and cost-savings to its customers every day. Working with Dan Florness and Fastenal's visionary leaders has been an honor and a pleasure. Apex is proud to have been a part of Fastenal's exceptional success and we look forward to continued collaboration with them in the future.”
Fastenal will report its sales and earnings for its first quarter of 2020 on April 14.