The parties plan to enter a definitive agreement upon completion of required consultations with Works Councils representing Fabory employees in the Netherlands, Belgium and France. The transaction is subject to customary closing conditions and is expected to be completed in the third quarter of 2011.
Fabory is headquartered in Tilburg, the Netherlands, and is the fastener market leader in the Netherlands and Belgium. With 2010 sales of $300 million US, Fabory offers its 120,000 customers access to more than 80,000 products in 14 countries. The company has been aggressively expanding its MRO and fastener offering throughout Central and Eastern Europe, and also provides supply chain fastener solutions to OEM customers in Europe, North America and China, as well as through a joint venture in India through Sterling Fabory Ltd.
"Fabory provides a unique opportunity for Grainger to enter one of the world's largest MRO markets through an established and growing business," said Jim Ryan, Grainger chairman, president and chief executive officer. "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 intends for Fabory to continue as a separate business maintaining the Fabory name and brand. Oswald van den Belt, chief executive officer of Fabory Group, will continue to lead the business and report to Court Carruthers, senior vice-president and president, Grainger International.www.grainger.com/investor