MSC Industrial Direct Acquires Rutland Tool & Supply, Expanding West Coast Presence

On November 10, MSC Industrial Direct Company Inc., a leading distributor of metalworking and MRO supplies, announced a definitive agreement to acquire the assets of Rutland Tool & Supply Company, a subsidiary of Lawson Products Inc. The transaction is valued at approximately $11 million in cash and is slated to close in the fourth quarter of 2010, pending customary closing conditions.

Rutland, headquartered in Whittier, California, was founded in 1955 and serves more than 20,000 industrial customers across the United States. Its product portfolio spans industrial tools, cutting tools, abrasives, machinery, precision instruments, safety gear, and other MRO items—over 100,000 SKUs available through web, showrooms, catalogs, and sales flyers. In 2009, Rutland generated $33.7 million in revenue.

MSC’s president and CEO, David Sandler, said, "Rutland is a well‑regarded West Coast metalworking distributor that adds to our presence in the region. We expect this acquisition will enhance our West Coast build‑out strategy and provide the opportunity for accelerated market share gains and further growth in sales and profitability."

The acquisition will be financed from MSC’s available cash reserves, and the company anticipates the deal will become accretive to earnings by late‑fiscal 2011 or early‑fiscal 2012.