W.W. Grainger Inc. (GWW) announced that its Canadian unit, Acklands-Grainger Inc., has purchased Solus Securite Inc., a leading fire protection and safety distributor in Quebec and has locations in Trois Rivieres, Victoriaville, Montreal and Sorel.
Acklands-Grainger has been operating in Quebec for more than 70 years, meeting the demand of consumers in this province. The Grainger unit had earlier invested in Quebec by acquiring Excel Industries in 2008 to cater to local business needs.
Presently, the customers in the Quebec region are looking forward to more products and services to keep their operations safe and running. The acquisition of Solus Securite will enable the company to pass on the synergies to the consumers, providing better service.
Outside Quebec, Acklands-Grainger acquired assets of K&D Pratt Industrial Division in November 2009, which is a distributor of industrial and safety products. K&D Pratt Industrial Division operated in Dartmouth, Nova Scotia, St. John's, Newfoundland and Labrador, and Saint John, New Brunswick.
Acklands-Grainger also acquired assets of Southwestern Ontario-based Ranson Industrial and Safety Supplies Inc., which is a distributor of industrial and safety products, in February 2010.
In the second quarter 2010, Acklands-Grainger reported sales of $207.8 million versus $160.7 million in the year-ago period, reflecting a growth of 29%. The contribution from this Grainger wing to total revenue in second-quarter 2010 was 11.7% versus 10.5% in the comparable period, a year ago, reflecting an improvement of 120 basis points. The year-over-year growth was driven by higher demand in agriculture and mining, oil and gas, heavy manufacturing and forestry sectors.
Grainger continues to enjoy a strong cash position, with cash and cash equivalent as of June 30, 2010 of $388 million, and cash provided by operating activities during the first half of 2010 of $286.3 million, enabling the company to acquire strategically. The adjusted earnings of Grainger at the end of second-quarter 2010 were $1.65 per share compared with $1.21 per share in the year-ago comparable period.
The Zacks Consensus Estimates for third quarter fiscal 2010, fiscal year 2010 and fiscal year 2011 are $1.80 per share, $6.41 per share and $7.30 per share, respectively.
Grainger currently retains a Zacks #2 Rank (short-term Buy rating). We also maintain a Neutral rating on the stock.
Based in Lake Forest, Illinois, Grainger is a distributor of facilities maintenance and other related products and services. The company distributes material handling equipment, safety and security supplies, lighting and electrical products, power and hand tools, pumps and plumbing supplies, cleaning and maintenance supplies, forestry and agriculture equipment, building and home inspection supplies, vehicle and fleet components, and various aftermarket components.
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Presently, the customers in the Quebec region are looking forward to more products and services to keep their operations safe and running. The acquisition of Solus Securite will enable the company to pass on the synergies to the consumers, providing better service.
Outside Quebec, Acklands-Grainger acquired assets of K&D Pratt Industrial Division in November 2009, which is a distributor of industrial and safety products. K&D Pratt Industrial Division operated in Dartmouth, Nova Scotia, St. John's, Newfoundland and Labrador, and Saint John, New Brunswick.
Acklands-Grainger also acquired assets of Southwestern Ontario-based Ranson Industrial and Safety Supplies Inc., which is a distributor of industrial and safety products, in February 2010.
In the second quarter 2010, Acklands-Grainger reported sales of $207.8 million versus $160.7 million in the year-ago period, reflecting a growth of 29%. The contribution from this Grainger wing to total revenue in second-quarter 2010 was 11.7% versus 10.5% in the comparable period, a year ago, reflecting an improvement of 120 basis points. The year-over-year growth was driven by higher demand in agriculture and mining, oil and gas, heavy manufacturing and forestry sectors.
Grainger continues to enjoy a strong cash position, with cash and cash equivalent as of June 30, 2010 of $388 million, and cash provided by operating activities during the first half of 2010 of $286.3 million, enabling the company to acquire strategically. The adjusted earnings of Grainger at the end of second-quarter 2010 were $1.65 per share compared with $1.21 per share in the year-ago comparable period.
The Zacks Consensus Estimates for third quarter fiscal 2010, fiscal year 2010 and fiscal year 2011 are $1.80 per share, $6.41 per share and $7.30 per share, respectively.
Grainger currently retains a Zacks #2 Rank (short-term Buy rating). We also maintain a Neutral rating on the stock.
Based in Lake Forest, Illinois, Grainger is a distributor of facilities maintenance and other related products and services. The company distributes material handling equipment, safety and security supplies, lighting and electrical products, power and hand tools, pumps and plumbing supplies, cleaning and maintenance supplies, forestry and agriculture equipment, building and home inspection supplies, vehicle and fleet components, and various aftermarket components.
GRAINGER W W (GWW): Free Stock Analysis Report
Zacks Investment Research
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