MRO products distribution giant Grainger announced Tuesday that has reached an agreement sell its Fabory business to Dutch private equity firm Torqx Capital Partners for an undisclosed amount.
Headquartered in Tilburg, the Netherlands, Fabory is a specialist distributor of fasteners and fastener-related products in the Western Europe countries of the Netherlands, Belgium and Luxembourg with a broader European presence in 11 countries. Bought by Grainger in 2011 for $344 million, Fabory sources an assortment of more than 400,000 fastener products from suppliers worldwide and distributes them to over 60,000 customers. The business has approximately 1,100 full-time employees and has annual revenue of approximately $246 million.
“I want to thank the Fabory team for their innovative and customer-focused approach,” said DG Macpherson, Grainger chairman and CEO. “I'm confident the acquisition by Torqx will better align with Fabory's growth objectives. At the same time, Grainger remains focused on providing value to our customers, executing our strategy and delivering profitable growth through our high-touch and endless assortment offerings.”
“Finding a new strategic partner for Fabory was an important next step in our strategy, while focusing on further growth and with an eye on the consolidation of the European fastener industry," added Ronald Baarslag, CEO of Fabory Group. "As a business we’re in good shape and in the past years we have built a new fundament for the growth of Fabory."
Grainger said it will continue to serve Western European customers with broad-line MRO products through its Cromwell and Zoro business units.
Subject to the standard regulatory approvals, the deal is expected to close in the coming months.
“Based on our extensive experience and strong track record with technical distribution businesses, we see a strong fit between Fabory and Torqx,” added Harmen Geerts, Torqx managing partner. “We can help the company to strengthen its position as leading fastener specialist in its core markets and achieve its full potential.”
In its 2020 first quarter earnings report, Grainger noted a $184 million non-cash impairment charge mainly from Fabory.