MSC Industrial Supply Co. Acquires All Integrated Solutions

MELVILLE, N.Y. and DAVIDSON, N.C., May 1, 2018

AIS delivers production fasteners and custom tool and fastener solutions for use in the assembly of manufactured commercial and consumer products. The company's 135-plus associates serve customers in a region that includes Wisconsin, Minnesota, Michigan, Iowa, Indiana and North Dakota. AIS's revenue in calendar 2017 was approximately $66 million.

MSC plans to maintain AIS's operations, providing the company's customer base access to MSC's 1.5 million-plus product portfolio to support their full metalworking and MRO needs. Similarly, MSC will extend AIS's production fastener and vendor-managed inventory (VMI) solutions to MSC's manufacturing customers.

"AIS represents an exciting opportunity to advance MSC's growth plan. Its assembly and fastener products and specialists extend our expertise and fortify our experienced team of associates in delivering solutions to help customers solve their mission-critical challenges on the plant floor," said MSC president and chief executive officer Erik Gershwind. "In addition, AIS also complements our robust Class C fastener offering and VMI solutions."

Rustom Jilla, MSC's executive vice president and chief financial officer, said, "This acquisition of AIS aligns very well with our strategy and our capital allocation philosophy, representing an exciting opportunity for MSC. The purchase price was roughly $86 million, subject to working capital adjustments. Inclusive of transaction and post-closing costs, we expect approximately 5 cents of EPS dilution in fiscal 2018, a roughly neutral impact on EPS in fiscal 2019 and steadily increasing accretion going forward."

Jim Ruetz, chief executive officer of AIS, added, "MSC shares our passion for delivering high-touch, custom solutions that go well beyond ordering MRO and production products online. Both organizations make sure the right fasteners and supplies are available when our customers need them without fail. We are looking forward to providing even more turn-key solutions to our customers by leveraging MSC's vast MRO and metalworking product and solutions portfolio, as well as expanding our reach as a leading distributor of industrial OEM components in the Midwest."