MSC Industrial Direct Co. Inc. (MSM: Quote) said it has acquired American Tool Supply Inc. and its affiliate, American Specialty Grinding Co. Inc. Terms of the transactions were not disclosed.
American Tool Supply provides customers with a full line of metalworking supplies and an experienced metalworking sales team. American Specialty Grinding Co. specializes in custom made tools and re-sharpening services. The two companies together generate about $50 million in annual sales.
MSC said it will use some of its available cash for these transactions and expects the acquisitions in total will become about $0.02 to $0.03 accretive to earnings in fiscal 2012, and more accretive in succeeding years.
The company also expects earnings dilution of about $0.01 per share in the fourth quarter of fiscal 2011, primarily due to the expenses related to the transactions.
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by RTT Staff Writer
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