ACQUISITION: Grainger Completes Cromwell Acquisition in UK
9/14/2015 12:28:00 AM
HEADLINES
Grainger completed its acquisition of Cromwell Group, the largest independent MRO distributor in the UK, for £310 million (US$482 million) in cash.
Founded in 1970, Leicester, England-based Cromwell serves more than 35,000 industrial and manufacturing customers with more than 80,000 industrial products, including fasteners, and employs about 2,150 workers.
Cromwell sales for the fiscal year ending August 31, 2015, are forecasted to be £283 million (US$440 million), with EBITDA margins of approximately 10%.
Grainger called the deal “a compelling opportunity in the U.K. to grow (our) MRO online model, similar to what the Company has already accomplished in Japan with MonotaRO and in the United States with Zoro.”
“The large, economically mature markets of Europe and Japan present the greatest opportunity for growth outside of North America and our online businesses across these regions are rapidly growing,” said Grainger CEO Jim Ryan.
“Over the next five years we expect sales growth from low single digits to approaching double digits, and EBITDA margins to improve from 10% to 15%.”
Cromwell will now operate as a subsidiary of Grainger and will be reported in Other Businesses.
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• Grainger
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