Deal sharpens Lawson’s focus on its core MRO business, adds to MSC’s metalworking presence on the West Coast
Industrial distributor Lawson Products announced plans to sell its Rutland Tool & Supply Co. subsidiary to MSC Industrial Direct Co. for $11 million in cash. The transaction is expected to close in the fourth quarter.
Whittier, Calif.-based Rutland Tool is an industrial distributor of metalworking and maintenance solutions that generated $33.7 million in revenue in 2009. Lawson said the sale aligns with its strategy to focus on advancing the Lawson MRO business, the company’s most profitable and fastest-growing segment, Lawson said in a statement announcing the deal this week.
"The sale of Rutland will provide us with valuable resources to further invest in and grow our core MRO business," said Tom Neri, president and chief executive officer of Lawson Products. "Through this sale, as well as through the recent sale of Assembly Component Systems, Inc., we are successfully positioning Lawson for profitable growth and ensuring our strong competitive position for the future."
In September, Lawson sold its Assembly Component Systems business to Supply Technologies LLC, a subsidiary of Park-Ohio Holdings Corp., for $19 million.
MSC says the acquisition of Rutland will sharpen its focus on the West Coast metalworking market.
“Rutland is a well-regarded West Coast metalworking distributor that adds to our presence in the region,” said David Sandler, MSC’s president and CEO. “We expect that 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.”