MSM's Acquisition of ApTex and Premier Tool Grinding Expands Metalworking Product Line

MSC Industrial Direct Company, Inc. (MSM) expanded its product offerings and regional presence through the acquisition of ApTex, Inc. and Premier Tool Grinding, Inc. ApTex specializes in metalworking tools and services, while Premier Tool Grinding manufactures carbide cutting tools. These acquisitions are expected to add around $20 million to MSC Industrial's sales, with a neutral impact on fiscal 2024 net income. MSM reported a year-over-year sales decline for the third fiscal quarter, while average daily sales increased sequentially.

MSC Industrial Direct (MSM), a leading distributor of metalworking and maintenance, repair, and operations (MRO) materials to industrial customers in North America, announced the acquisition of ApTex, Inc. and Premier Tool Grinding, Inc. Both companies will continue to operate under their current names as MSC subsidiaries. The combined revenues of ApTex and Premier Tool Grinding in 2023 were estimated at over $20 million, with a workforce of 58 employees. These acquisitions are expected to have a neutral impact on MSC's fiscal 2024 net income [1].

ApTex, based in Waukesha, Wisconsin, specializes in cutting tools, abrasives, metalworking fluids, and fastening systems and components. The company is known for its deep technical expertise and focus on value-added services that deliver savings at every step of its customers' manufacturing process. Premier Tool Grinding, located in Goodyear, Arizona, manufactures sintered carbide cutting tools and offers best-in-class tool grinding designs, regeneration, and coating services. The company has made significant progress over the years, transitioning from hand-held grinders at its inception in 1991 to a fully automated workshop equipped with CNC machines and state-of-the-art PVD coating machines [1].

MSC President and CEO Erik Gershwind expressed excitement about the acquisitions, stating that ApTex will strengthen MSC's position to gain share in the surrounding Wisconsin area by combining its technical expertise with MSC's class-leading metalworking offering. Additionally, Premier Tool Grinding will enhance MSC's offering of specialty tools and grinding services, which was recently bolstered by the acquisition of Tru-Edge, and expand its reach into the Western United States [1].

Dean Meier, president of ApTex, expressed enthusiasm about joining the MSC family, looking forward to combining its technical expertise and solutions-based approach with MSC's expanded product offering to deliver further savings for customers. Similarly, Premier Tool Grinding sees this as a significant opportunity to use its spirit of innovation and technical prowess on a larger scale and contribute to MSC's legacy of excellence [1].

MSC reported a year-over-year sales decline for the third fiscal quarter, but average daily sales increased sequentially. The company's strategic acquisitions, including ApTex and Premier Tool Grinding, are expected to contribute to its growth and competitiveness in the market [2].

References:
[1] Solondais, F. (2024, June 26). MSC strengthens regional presence and value proposition through the acquisitions of ApTex and Premier Tool Grinding. Retrieved from https://solondais.fr/2024/06/26/news158081/msc-strengthens-regional-presence-and-value-proposition-through-the-acquisitions-of-aptex-and-premier-tool-grinding/
[2] MSC Industrial Direct Company, Inc. (2024, June 13). MSC Industrial Direct Reports Fiscal 2024 Third Quarter Results. Retrieved from https://www.mscdirect.com/about-us/investor-relations/press-releases/press-release-details/2024/MSC-Industrial-Direct-Reports-Fiscal-2024-Third-Quarter-Results/default.aspx