Purchase of Long Island-Based Distributor Enhances and Expands MSC's OEM Fastener Business
MELVILLE, N.Y. and DAVIDSON, N.C., Aug. 3, 2022 /PRNewswire/ -- MSC INDUSTRIAL SUPPLY CO. (NYSE: MSM), a premier distributor of Metalworking and Maintenance, Repair and Operations supplies to industrial customers throughout North America, today announced that it has acquired Tower Fasteners, a Holtsville, New York-based valued-added distributor of Original Equipment Manufacturer (OEM) fasteners and components.
Under the equity purchase agreement, Tower will continue to operate under its current name after becoming an MSC company. Mark Shannon, President of Tower, will continue to lead the business, which has approximately 100 associates. Tower's revenue in calendar 2021 was approximately $35 million. MSC's acquisition of Tower, made through its All Integrated Solutions (AIS) subsidiary, expands the company's presence in the OEM fastener market, which it entered in 2018 with the acquisition of AIS, a leading value-added distributor of industrial fasteners and components, MRO supplies and assembly tools based in Wisconsin.
Tower's growing footprint complements AIS's existing locations concentrated in the Midwest. The company operates eight distribution centers along the East Coast and in the Southwestern regions of the United States, Mexico and Europe. Tower serves manufacturers in the industrial, electronics, medical equipment, aerospace, military, and security, fire and safety sectors. MSC plans to maintain Tower's operations, providing the company's customer base access to MSC's 2 million-plus product portfolio to support their full metalworking and MRO needs. Similarly, MSC will extend Tower's production fastener solutions to its manufacturing customers. The acquisition is expected to be roughly neutral to MSC's fiscal 2022 earnings and slightly accretive to fiscal 2023 earnings.
"We are excited to add Tower Fasteners to our growing portfolio of businesses, all focused on helping manufacturers solve their mission-critical challenges," said MSC President and CEO Erik Gershwind. "Tower will expand our presence in the OEM fastener market and provide an entrée into new end markets like electronics and medical equipment. We look forward to supporting the growth and success of their customers together."
AIS President Nick Ruetz, added, "Tower's geographic footprint on the East Coast and in the Southwest complements our strong presence in the Midwest. AIS and Tower have worked together on industry-related matters for many years. We're looking forward to partnering to expand our reach in serving OEM customers and extending MSC's full array of solutions to improve the effectiveness and efficiency of their operations."
Mark Shannon, President of Tower Fasteners, said MSC, AIS and Tower have a shared passion for providing high-touch, custom solutions to manufacturers to support their MRO product and inventory management needs.
"MSC is a recognized and respected leader in the industrial supply distribution industry. We're excited to join forces with MSC and AIS to bring even greater value to our customers," Shannon said.
About MSC Industrial Supply Co.
MSC Industrial Supply Co. (NYSE:MSM) is a leading North American distributor of a broad range of metalworking and maintenance, repair and operations (MRO) products and services. We help our customers drive greater productivity, profitability and growth with approximately 2 million products, inventory management and other supply chain solutions, and deep expertise from over 80 years of working with customers across industries. Our experienced team of more than 6,500 associates is dedicated to working side by side with our customers to help drive results for their businesses - from keeping operations running efficiently today to continuously rethinking, retooling, and optimizing for a more productive tomorrow. For more information on MSC, please visit www.mscdirect.com.
AIS, which was founded in 1962, is a leading value-added distributor of industrial production fasteners, components, and assembly tools. In 2018, AIS was acquired by MSC as the platform for the company's OEM fastener and components strategy. AIS is headquartered in Franksville, Wisc. For more information on AIS, please visit www.allintegrated.com
About Tower Fasteners
Thomas J. Shannon founded Tower Fasteners in 1967 in Mineola, New York. Mr. Shannon's philosophy was a simple but powerful one: provide his customers with the products they needed, when they needed them, without fail. Because of Mr. Shannon's strong commitment to customer satisfaction, Tower Fasteners continued to grow year by year. The company relocated several times to larger facilities across Long Island. The first Tower distribution center, in Fort Lauderdale, Florida, which is now a sales office, was opened in 1975. In 1986, Tower designed and built its current corporate headquarters, in Holtsville, New York. Additional distribution centers in New England, Pennsylvania, New Jersey, North Carolina, Mexico and Texas are currently servicing Tower customers along the East Coast and Southwest of the United States, as well as in Mexico. In 2018, Tower Fasteners opened its first European distribution center in Dublin, Ireland. Tower Fasteners EU Ltd. is located less than thirty minutes outside of Dublin's city center and serves as Tower's European headquarters. Tower has grown from a one-person organization to a company that employs over 100 people in eight states. Today, Tower Fasteners is being managed by a second generation of Shannons who have inherited Thomas J. Shannon's passion for and commitment to excellence. For more information, visit www.towerfast.com.
SOURCE MSC Industrial Supply Co.