MELVILLE, N.Y., July 18, 2011 /PRNewswire/ -- MSC INDUSTRIAL DIRECT CO., INC. (NYSE: MSM), "MSC", one of the premier distributors of Metalworking and Maintenance, Repair and Operations ("MRO") supplies to industrial customers throughout the United States, announced today that it has acquired American Tool Supply, Inc. ("ATS") and its affiliate, American Specialty Grinding Co., Inc. ("ASG"). The two companies together generate approximately $50 million in annual sales. Terms of the transactions were not disclosed. MSC will use some of its available cash for these transactions and expects the acquisitions in total will become approximately $0.02 to $0.03 accretive to earnings in fiscal 2012 and more accretive in succeeding years. The Company also expects earnings dilution of approximately $0.01 per share in the fourth quarter of fiscal 2011, primarily due to the expenses related to the transactions.
David Sandler, President and Chief Executive Officer of MSC, stated, "We are very excited about acquiring American Tool Supply, Inc. and American Specialty Grinding Co., Inc. as yet another step in the execution of our long-term growth strategy. We've always had a lot of respect for their principals, Ray Fontaine, Jay Bath, and Rich Duplessie, the outstanding Team they have built as well as the value added capabilities of both ATS and ASG. Now, we bring together the best of both companies to add to our presence in the northeast region."
Rich Duplessie, Director of ATS, said, "This is a great opportunity for MSC, ATS and ASG, our associates, customers and our suppliers. Together, we will bring a depth and breadth of metalworking expertise, services and solutions to our customers that are unmatched in the industry. We are very excited about the growth opportunity in front of us."
Headquartered in Chicopee, MA, American Tool Supply, Inc. was founded in 1983. With locations in MA, NH, CT, and NC, American Tool Supply Inc. provides customers with a full line of metalworking supplies and an experienced metalworking sales team.
Also headquartered in Chicopee, MA, American Specialty Grinding Co., Inc. was founded in 1969 and specializes in custom made tools and re-sharpening services.
About MSC Industrial Direct Co., Inc.
MSC Industrial Direct Co., Inc. is one of the largest direct marketers and premier distributors of Metalworking and Maintenance, Repair and Operations ("MRO") supplies to industrial customers throughout the United States. MSC is recognized for its outstanding customer service with over 1,000 sales specialists, 600,000 industrial products, 3,000 suppliers, and 99% in-stock availability. For more information, visit MSC's website at http://www.mscdirect.com.
CAUTIONARY STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Statements in this Press Release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements contained herein which are not statements of historical facts and that address activities, events or developments that MSC, or "the Company", expects, believes or anticipates will or may occur in the future, including statements about the expected benefits of the acquisition shall be deemed to be forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events, actual results and performance, financial and otherwise, could differ materially from those set forth in or contemplated by the forward-looking statements herein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The inclusion of any statement in this release does not constitute an admission by MSC or any other person that the events or circumstances described in such statement are material. Factors that could cause actual results to differ materially from those in forward-looking statements include, without limitation, problems with successfully integrating acquired operations, current economic, political and social conditions, changing customer and product mixes, financial restrictions on outstanding borrowings, industry consolidation, competition, general economic conditions in the markets in which the Company operates, volatility in commodity and energy prices, credit risk of our customers, risk of cancellation or rescheduling of orders, work stoppages or other business interruptions (including those due to extreme weather conditions) at transportation centers or shipping ports, the risk of war, terrorism and similar hostilities, dependence on the Company's information systems and on key personnel, and the outcome of potential government or regulatory proceedings or future litigation relating to pending or future claims, inquiries or audits. Additional information concerning these and other risks is described under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's reports on Forms 10-K, 10-Q and 8-K that the Company files with the U.S. Securities and Exchange Commission. The forward-looking statements in this press release are based on current expectations and the Company assumes no obligation to update these forward-looking statements.
SOURCE MSC Industrial Direct Co., Inc.