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.