Grainger to Buy European Fastener Co. for $344 million

2011-08-18

According to Reuters, Industrial distributor W.W. Grainger Inc. (NYSE: GWW) is to acquire the Netherlands-based Fabory Group for about $344 million to enter the European market for fasteners and related maintenance and repair products.
Grainger expects the acquisition of Fabory, which leads the market for fasteners in the Netherlands and Belgium, to add to its 2012 earnings, and expects the deal to complete in the third quarter of 2011.
"Fabory provides a unique opportunity for Grainger to enter one of the world's largest maintenance, repair and operations (MRO) markets through an established and growing business," Grainger Chief Executive Jim Ryan said.
Grainger expects to keep Fabory as a separate business, maintaining the Fabory brand.
Fabory, which reported annual sales of $300 million in 2010, has been expanding its MRO and fastener offering throughout Central and Eastern Europe.
It also provides supply chain fastener solutions to original equipment manufacturers in Europe, North America and China as well as through a joint venture in India through Sterling Fabory Ltd, Grainger said.