MSC Industrial Supply Co. added to its market coverage this week by acquiring industrial supply distributor Deco Tool Supply Co. for $42 million, an MSC spokesman says. Deco does $100 million in annual sales.
Davenport, Iowa-based Deco sells online at Shop.Decotool.com and through a catalog. It also has more than 190 sales reps and 10 branch offices, mainly in the Midwest, giving MSC more coverage in that territory. The deal, which was completed July 31, will eventually give Deco customers access to more than 1 million MSC metalworking and maintenance, repair and operations products and services available at MSCDirect.com, MSC says.
Deco’s sales are strictly B2B, MSC’s spokesman says, but he declines to disclose Deco’s online sales. Data from web traffic monitor SimilarWeb suggests Deco’s online activity is modest. SimilarWeb says Shop.Decotool.com attracted fewer than 5,000 visits last month, versus 1.55 million for MSC’s main U.S. e-commerce site, MSCDirect.com.
“Deco is a perfect fit with our strategic plan as the acquisition enhances our metalworking business, which is the foundation of MSC,” says Erik Gershwind, president and CEO of MSC, No. 74 in the B2B E-Commerce 300. “Deco brings a talented team with considerable experience and expertise, and strengthens our presence in several important markets in the Midwest,” he says.
Deco offices are located in Iowa, Illinois, Missouri, Minnesota, Nebraska, Kansas and South Dakota.
In addition to an expanded offering of maintenance, repair and operations products, or MRO, that companies use to maintain and operate their facilities, Melville, New York-based MSC gives Deco customers next-day delivery and inventory management technology, Gershwind says.
“Leveraging the strengths of Deco and MSC will provide our customers greater product offerings, service levels and value-added solutions to help them succeed,” says Deco president Dennis Quinn.
MSC’s formal corporate name is MSC Industrial Direct Co. Inc., but it generally uses the name of its largest division, MSC Industrial Supply Co.
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