MSC Industrial Supply Acquires Tower Fasteners For Undisclosed Sum

MSC Industrial Supply Acquires Tower Fasteners For Undisclosed Sum
  • MSC Industrial Direct Co Inc MSM has acquired Tower Fasteners, a Holtsville, New York-based valued-added distributor of Original Equipment Manufacturer (OEM) fasteners and components. Financial Terms were not disclosed.
  • MSC made the acquisition through its All Integrated Solutions (AIS) subsidiary.
  • Under the equity purchase agreement, Tower will continue to operate under its current name after becoming an MSC company.
  • Tower's revenue for calendar 2021 was ~$35 million. Mark Shannon, President of Tower, will continue to lead the business, which has approximately 100 associates.
  • MSC plans to maintain Tower's operations and will extend Tower's production fastener solutions to its manufacturing customers.
  • The company expects the acquisition to be roughly neutral to its FY22 earnings and slightly accretive to FY23 earnings.
  • MSC noted Tower's footprint complements AIS's existing locations concentrated in the Midwest.
  • MSM held cash and equivalents of $28.84 million as of May 28, 2022.
  • "Tower will expand our presence in the OEM fastener market and provide an entrée into new end markets like electronics and medical equipment," commented MSC President and CEO Erik Gershwind.
  • Price Action: MSM shares are trading higher by 1.18% at $82.46 on the last check Wednesday.

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