CHICAGO (AP) — Industrial maintenance and safety products supplier W.W. Grainger Inc. plans to buy European fastener distributor Fabory Group for $344 million to boost its product offerings.
Fabory, based in the Netherlands, sells its 80,000 products in 14 countries. It had 2010 revenue of about $300 million.
"Fabory brings expertise as a fastener specialist to amplify Grainger's product offering, while Grainger's scale and supplier network will help accelerate further growth of Fabory's business," Grainger President and CEO Jim Ryan said in a statement.
Grainger said Monday that it plans for Fabory to continue to operate as a separate business, keeping its name and brand. Fabory Group CEO Oswald van den Belt will continue to run the company, reporting to Court Carruthers, senior vice president and president of Grainger International.
Grainger said the companies must complete required consultations with Works Councils representing Fabory employees in the Netherlands, Belgium and France before they can enter a definitive agreement.
Last month Grainger reported that its second-quarter profit rose 32 percent because of expanded product offerings and growing international sales. The company also raised its forecast for the year.
The acquisition is expected to close in the third quarter.