CHICAGO--(BUSINESS WIRE)--Nov. 8, 2016--
Lawson Products, Inc. (NASDAQ:LAWS), a distributor of products
and services to the MRO and automotive marketplaces, today announced
plans to close its distribution center in Fairfield, New Jersey by March
2017. The decision was made based upon the enhanced capabilities and
efficiencies of its state-of-the-art McCook, Illinois distribution
center which opened in 2012.
The 308,000 square foot McCook distribution center provides the company
and its customers many benefits including increased fulfillment rates,
enhanced product availability, and greater shipping options given the
facility’s proximity to a UPS hub. Located in suburban Chicago, McCook
will assume approximately 80 percent of the customers currently serviced
by the company’s Fairfield distribution center with the remaining
customers transitioning to Lawson’s Suwanee, Georgia facility. The
company does not expect any service disruptions to its customers.
“We made the investment in state-of-the-art infrastructure in our McCook
facility to maximize distribution center efficiency and accommodate
growth to best serve our customers. Lawson Products continues to have a
very strong infrastructure and significant capacity within its existing
distribution network to grow,” said Michael DeCata, president and chief
executive officer, Lawson Products.
“I would like to thank the entire Fairfield team for their commitment
and their outstanding customer support,” DeCata said. The Fairfield
distribution center opened in 1976 and employs 37 people. Positions will
be phased out over the coming months and the company will work with the
affected employees, offering outplacement support and other resources.
Lawson Products expects to record estimated one-time cash charges
primarily consisting of severance, labor and inventory transfer costs
between $1.4 million and $1.7 million during the fourth quarter of 2016
and the first quarter of 2017. The company expects the closure of this
facility will result in annual net savings of approximately $1.2
million. The company expects to realize a gain in excess of the closure
costs when the Fairfield facility is sold.
About Lawson Products, Inc.
Founded in 1952, 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
or https://www.kent-automotive.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, 2015, Form 10-K filed on February 18, 2016. The Company
undertakes no obligation to update any such factors 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161108006142/en/
Source: Lawson Products, Inc.
Media Contact:
Lawson Products, Inc.
Julie Baron
Julie@CommunicationWorks.biz
847-525-3043
or
Investor
Relations:
Lawson Products, Inc.
Ronald J. Knutson
Executive
Vice President, Chief Financial Officer
773-304-5665
Ron.Knutson@lawsonproducts.com
