Acklands-Grainger Inc., a wholly owned subsidiary of W.W. Grainger, Inc. (GWW) in Canada, recently announced that it has acquired certain assets of Fercomat Inc. for an undisclosed amount. Founded in 1957, Fercomat is a distributor of hardware, tools and fasteners in Quebec, Canada.
Grainger is currently on an expansion spree to strengthen its business across each of its operating regions including North America, Canada, Asia and Latin America. Acklands-Grainger expects an incremental sales contribution of approximately $3 million from this acquisition over the next one year.
Last month, Grainger completed the acquisition of Fabory Group, a leading European distributor of fasteners and related maintenance, repair and overhaul (MRO) products to mark the company’s entry in the world's largest MRO market.
In the last reported quarter, Grainger earned a profit of $2.22 per share versus $1.65 in the year-ago quarter. Revenues were $2.0 billion, up 12.3% from $1.78 billion in the year-ago period. On a daily basis, sales increased 14% year over year in April, 11% year over year in May and 12% year over year in June.
The improvement in revenue is attributable to volume growth and favorable pricing coupled with favorable foreign exchange rates and acquisitions, partly offset by the negative impacts of the oil spill clean-up in the Gulf of Mexico in 2010.
Operating earnings in the quarter improved 23% to $265.3 million from $214.9 million last year, primarily driven by a higher gross profit margin. Gross profit rose 15.4% to $862.4 million from $747.1 million a year ago.
Incorporated in 1928 in Illinois, Grainger is a leading North American distributor of material handling equipment, safety and security supplies, lighting and electrical products, power and hand tools, pumps and plumbing supplies, cleaning and maintenance supplies, forestry and agriculture equipment, building and home inspection supplies, vehicle and fleet components, and various aftermarket components; and services comprising inventory management and energy efficiency solutions.
GRAINGER W W (GWW): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment