A manufacturing supply house with five facilities in Michigan’s Great Soutwest and Northwest Indiana is growing through acquisition as they pick up certain assets of a Hudsonville, Michigan supplier. Fastenal, which has operations in Benton Harbor, Niles, South Haven, South Bend and Laporte, signed agreements earlier this month to acquire portions of Manufacturer’s Supply Company — or simply Mansco — headquartered in Hudsonville.
Fastenal agreed to take on certain assets of the industrial and fastener supply distributor which also has facilities in Madison, Alabama and McAllen, Texas. The acquisition is predicated on several conditions, however the deal is expected to close by the end of the month.
Fastenal services many local manufacturing companies through shops at 2460 M-139, Suite A in Benton Harbor, 1825 Dewey Lane in South Haven, and 1990 S. 11th Street in buildings 44-45 in Niles. Additional outlets are in South Bend and LaPorte in Indiana.
Dan Florness is President & CEO of Winona, Minnesota-based Fastenal. He says, “From our first discussions, we were impressed with the Mansco team.” He notes, “It has built a successful business in a challenging fastener distribution market through a focus on customers and a ‘can-do’ approach. This speaks to the company’s ability to execute and illustrates how well Mansco will fit with our own ‘growth through customer service’ culture. We look forward to welcoming Mansco to the Fastenal family. Our complimentary capabilities make both businesses stronger.”
Mansco President Jim Mol was equally exuberant saying, “I am extremely pleased about the opportunity for the business and our employees to move forward with Fastenal.” He adds, “Fastenal brings an enormous supply capability and cost saving technologies to our customers. This combination will help us grow and better serve our customers, while maintaining the excellent quality and service our customers have come to expect.”
Mol has operated the business for the past twenty-five years. The company focuses on fastener products, with a particularly strong market position with commercial furniture OEMs. As such, this acquisition gives Fastenal a presence in a market where it has not meaningfully contributed in the past, while providing Mansco with additional tools with which to service its customer base.
Mansco generated approximately $50-million of revenue in 2016, largely from its flagship Michigan location although recent successes with its customers are generating more sales related to its two other facilities. The company is profitable and the transaction should be accretive in the first twelve months, though it should not be material to earnings per share.
Fastenal sells different types of industrial and construction supplies in the following product categories:
- Threaded fasteners and miscellaneous supplies
- Tools
- Metal cutting tool blades and abrasives
- Fluid transfer components and accessories for hydraulic and pneumatic power
- Material handling
- Storage and packaging products
- Janitorial, chemical and paint products
- Electrical supplies
- Welding supplies
- Safety supplies
- Metals, alloys and materials
- and office supplies
Fastenal operates approximately 2,500 stores located primarily in North America with additional locations in Asia, Europe, Central and South America, and Africa. The Company operates 14 distribution centers in North America; eleven in the United States – Minnesota, Indiana, Ohio, Pennsylvania, Texas, Georgia, Washington, California, Utah, North Carolina, and Kansas, and three outside the United States – Ontario, Canada; Alberta, Canada; and Nuevo Leon, Mexico.
Additional information regarding Fastenal is available on the Fastenal Company website by clicking the link below: