CHICAGO--(BUSINESS WIRE)--Oct. 3, 2017--
Lawson Products, Inc. (NASDAQ:LAWS) a distributor of products and
services to the MRO marketplace, today announced the acquisition of The
Bolt Supply House Ltd., based in Calgary, Canada, for a purchase price
of approximately CAD$40.0 million, subject to customary post-closing
price adjustments. The purchase price was funded with cash on hand and
utilization of Lawson Products’ existing credit facility.
Founded in 1948, The Bolt Supply House Ltd., owned by John J. McCann and
W. Brett Wilson, is a leading Canadian distributor of high quality
fasteners, power tools and industrial MRO supplies, with annual sales of
approximately CAD$43 million. The Bolt Supply House’s 13 branch
locations and 27 sales territory managers serve companies and
professional tradespeople in Alberta, Saskatchewan, and Manitoba,
Canada. The company packages and ships products from a 43,000
square-foot distribution center in Calgary. The Bolt Supply House will
operate under its brand as a subsidiary corporation of Lawson Products’
Canadian operating company.
The transaction marks Lawson Products’ fifth and largest acquisition in
24 months and more than doubles its sales in Canada.
Michael DeCata, president and chief executive officer of Lawson
Products, Inc. said, “This transaction marks an important phase of
Lawson Products’ growth strategy, acquiring companies that significantly
add to our revenue and earnings. The acquisition will expand our
distribution coverage in Western Canada to provide sales growth
opportunities on enhanced regional fulfillment capabilities.
“With The Bolt Supply House acquisition, we’re partnering with a company
with a similar history and culture. In addition, like Lawson Products,
The Bolt Supply House is recognized for exceptional customer service,
outstanding technical support and product expertise,” said DeCata.
John J. McCann, chief executive officer and principal shareholder of The
Bolt Supply House, stated, “We selected Lawson because of their industry
leadership, commitment to operational excellence and their focus on both
employee and customer relationships. The two companies are now
positioned to further capitalize on geographic growth opportunities.”
Kurt Mario, president of The Bolt Supply House, will continue to lead
the company post-closing. Key sales and management members will continue
in their existing leadership roles. The Bolt Supply House will continue
to operate under its go-to-market strategy, with branch locations and
sales territory managers. The Lawson Products and Kent Automotive
businesses will continue with their sales rep based model, focusing on
providing technical knowledge and vendor managed inventory services.
Third Coast Capital Advisors served as financial advisor to Lawson
Products. Lawson Products’ acquisition of The Bolt Supply House Ltd.
closed on October 3, 2017.
Lawson Products, Inc. will conduct a conference call with investors to
discuss the acquisition at 9:00 a.m. Eastern Time on October 4, 2017.
The conference call is available by direct dial at 1-877-737-7051 in the
U.S. or 1-201-689-8878 from outside of the U.S. A replay of the
conference call will be available approximately two hours after
completion of the call through November 30, 2017. Callers can access the
replay by dialing 1-877-481-4010 in the U.S. or 1-919-882-2331 outside
the U.S. The PIN access number for the replay is 20379#.
About Lawson Products, Inc.
Celebrating our 65th anniversary in 2017, Lawson Products (NASDAQ: LAWS)
is an industrial distributor of maintenance and repair products. Lawson
carries a comprehensive line of products and provides inventory
management services to the industrial, commercial, institutional and
government maintenance, repair and operations (MRO) market. With several
strategically located distribution centers in North America, Lawson
ships to customers in all 50 states, Puerto Rico, Canada, Mexico and the
Caribbean. Under its Kent Automotive brand, the Company supplies
products to collision and mechanical repair shops as well as automotive
OEMs. For additional information, please visit https://www.lawsonproducts.com
This Release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 that
involve risks and uncertainties. The terms "may," "should," "could,"
"anticipate," "believe," "continues," "estimate," "expect," "intend,"
"objective," "plan," "potential," "project" and similar expressions are
intended to identify forward-looking statements. These statements are
not guarantees of future performance and involve risks, uncertainties
and assumptions that are difficult to predict. These statements are
based on management's current expectations, intentions or beliefs and
are subject to a number of factors, assumptions and uncertainties that
could cause or contribute to such differences or that might otherwise
impact the business and include the risk factors set forth in Item 1A of
the December 31, 2016, Form 10-K filed on February 23, 2017. The Company
undertakes no obligation to update any such factor or to publicly
announce the results of any revisions to any forward-looking statements
whether as a result of new information, future events or otherwise.
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Source: Lawson Products, Inc.
Lawson Products, Inc.
Lawson Products, Inc.
Ronald J. Knutson
Vice President, Chief Financial Officer