W.W. Grainger Inc. has reached a deal to buy England's Cromwell
Group Ltd. for £ 310 million (US$482 million) in cash, as the
company continues its push abroad.
Cromwell is the largest independent distributor of maintenance,
repair and operating products in the U.K. The company expects to
post sales for the fiscal year ending in August of £ 283 million
(US$440 million).
Grainger, meanwhile, is expected to post $10 billion in sales
for the 2015 year, according to analysts polled by Thomson Reuters.
Grainger's revenue has been pressured lately amid overseas weakness
and lower energy prices, among other things.
Through the deal, Grainger is hoping to add scale to its online
business in the U.K. and Germany. Grainger expects to operate
Cromwell as a stand-alone business.
Grainger sees the deal, expected to close in early September,
adding 10 cents to 15 cents to its 2016 earnings.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires