HUDSONVILLE — Industrial and fastener distributor Manufacturer’s Supply Co. has signed an agreement to sell certain assets to a global industrial supply company.
If various conditions are met, Winona, Minn.-based Fastenal Co. (Nasdaq: FAST) could close on the deal for Manufacturer’s Supply, or Mansco, by the end of March, according to a statement.
Hudsonville-based Mansco generated roughly $50 million in sales in 2016 from locations in Michigan, Alabama and Texas. It was founded in 1928. President Jim Mol has operated Mansco for the last 25 years.
“Fastenal brings an enormous supply capability and cost saving technologies to our customers,” Mol said in a statement. “This combination will help us grow and better serve our customers, while maintaining the excellent quality and service our customers have come to expect.”
Mansco supplies a range of fastener products, “with a particularly strong market position with commercial furniture OEMs,” a market Fastenal to which “has not meaningfully contributed in the past.”
In a statement, Fastenal said Mansco continues to be profitable. Executives expect the deal for Mansco to be accretive within the first 12 months, but it is not anticipated to be material to earnings per share.
In announcing the deal, Fastenal President and CEO Dan Florness praised Mansco’s business model and leadership.
“It has built a successful business in a challenging fastener distribution market through a focus on customers and a ‘can-do’ approach,” Florness said.
For 2016, Fastenal generated $3.96 billion in revenue and reported net earnings of nearly $499.5 million, or $1.73 per share. The company operates 2,500 stores, most of which are in North America, plus locations in Asia, Europe, Central and South America, and Africa.