Global Fastener News

FEATURE

The Applied Industrial Technologies acquisition of Atlantic Fasteners first reported by GlobalFastenerNews.com on Tuesday, August 4, begins major transitions for both companies.

 •  Applied has acquired dozens of companies in the past decade, but Atlantic is the first fastener firm.  Applied’s website lists 20 categories from “Adhesives & Sealants” to “Seals & O-Rings.”  Fasteners are not among the 20.

 •  The employee-owned Atlantic Fasteners becomes a tiny part of Applied – which had sales of $2.5 billion in 2014.  Employees can buy Applied’s stock on the New York Stock Exchange.  By contrast, during its 30th anniversary in 2011, Atlantic announced sales of $13 million.

 •  Atlantic president Tony Peterson becomes vice president / general manager and the company name becomes Atlantic Fasteners / an Applied MSS Company.

 •  Atlantic employees begin “onboarding” to be Applied employees, including paperwork, drug testing, etc.

 •  Peterson told GlobalFastenerNews.com the new consolidated office/warehouse in Agawam where Atlantic moved earlier this year has double the space and may take on more usage by Applied.

 •  Employee owners “made off very well,” Peterson said.  And especially the younger employees “have a great opportunity for advancement” through Allied.

For more on the FIN interview with Peterson, FIN Subscribers can CLICK HERE.

 •  Atlantic is a company rich in Fastener History – from an early “next-day delivery” guarantee to bar coding and to employee-ownership.  See stories below from the Fastener History section of GlobalFastenerNews.com.

Applied Industrial Technologies acquired the 100% employee-owned, Massachusetts-based commercial and aerospace hardware distributor Atlantic Fasteners.

Atlantic Fasteners was founded in 1981 by Patrick O’Toole and Carol Peters. In 2005 they sold the company to employees.

“Atlantic Fasteners provide the market presence, products ad capabilities to further enhance our Applied Maintenance Supplies & Solutions offering to a broad array of industrial customers,” Applied CEO Neil Scheimaher said. “They are an ideal fit with our business strategy and growth plans.”

Terms of the sale were not announced. In 2005 the Springfield Republican newspaper reported the employee acquisition was valued between $5 million and $10 million with half the fund from a bank loan and half from a 12-year loan from the owners.

Applied Industrial (NYSE: AIT) is an industrial distributor of five million parts to MRO and OEM customers.  Applied also provides engineering, design and systems integration for industrial and fluid power applications and customized mechanical, fabricated rubber and fluid power shop services; maintenance training and inventory management. Web: applied.com

Applied was founded in 1923 by Joseph Burning as the Ohio Ball Bearing Company. First year sales totaled $82,000.  In 1953 the name was changed to Bearings Inc. and shares were sold on the American Stock Exchange. In 1965 shares began being sold on New York Stock Exchange.

In 1995 sales topped a billion dollars and in 1997 the company name became Applied Industrial Technologies.  Over the decades Applied has made dozens of acquisitions.  By 2007 sales topped $2 billion.

Today Applied has 560 facilities in the U.S., Puerto Rico, Mexico, Canada, Australia and New Zealand and is headquartered at 1 Applied Plaza, Cleveland, OH 44115. Tel: 216 426-4000. Web: applied.com

Atlantic Fasteners is an ISO 9001:2008 and AS9120 certified distributor that stocks 15,080 varieties of inch and metric fasteners. Earlier this year, Atlantic Fasteners completed moving from West Springfield, MA, to a 44,500 sq ft facility in neighboring Agawam, consolidating all employees under one roof at 92 H.P. Almgren Dr., Agawan, MA 01001. Tel: 800 800-2658  Web: atlanticfasteners.com

For more on Atlantic Fasteners check the Fastener History section of GlobalFastenerNews.com:
 

2011 FIN – O’Toole: Bar Coding Key to 30 Years of Atlantic Fasteners Growth

“Bar coding put our error rate near zero. The key to this business became the computer. It gave us a strong advantage.”

2011 FIN – Atlantic Fasteners Celebrates 30 Years as Chairman Retires

In 1986, Atlantic’s first guarantee of next-day delivery, backed by the promise of a $50 credit, demonstrated the company’s early expertise in inventory management.

2005 FIN – O’Toole Sells Atlantic to Employees
Founded in 1981 by O’Toole and Peters.