Industrial Distribution Group, Inc. Announces Sale of Cardinal Machinery Business Unit
16 Settembre 2005 - 10:12PM
PR Newswire (US)
ATLANTA, Sept. 16 /PRNewswire-FirstCall/ -- Industrial Distribution
Group, Inc. (NASDAQ:IDGR) today announced the sale of its Cardinal
Machinery business unit to the existing local management team of
that entity. Under terms of the agreement, the management team of
Cardinal Machinery assumed full ownership of all facilities and
debt and substantially all other liabilities, effective September
16, 2005. The sale of Cardinal Machinery unlocks value for
Industrial Distribution Group shareholders because the business
unit no longer matched with the core business and strategic
direction of the Company. With 2004 revenues of approximately $10
million out of the Company's total revenues of $529.2 million for
the same period, Cardinal Machinery did not meet the strategic
objectives set by senior management of Industrial Distribution
Group. The sale allows Industrial Distribution Group to focus on
core competencies exclusively, while allowing the management team
of Cardinal Machinery to do the same. Industrial Distribution Group
has been transforming the industrial supply marketplace by
converting a commodity distribution business into a value-added
product and services company that helps U.S. manufacturers produce
goods faster, with less expense and with higher quality. Since
pioneering a product/service model, Industrial Distribution Group
has generated nearly half of its revenue from its value-added
services. The sale of Cardinal Machinery allows Industrial
Distribution Group to further drive its vision of value- added
manufacturing products and services. Cardinal Machinery offers a
complete line of metal-working and fabrication equipment, as well
as tooling services and a full line of accessories to help its
customers achieve their production goals. Cardinal's operation will
remain in its Memphis, Tennessee location. About IDG Industrial
Distribution Group, Inc. (NASDAQ:IDGR) is a nationwide products and
services company that creates a competitive advantage for
customers. The Company provides outsourced maintenance, repair,
operating and production (MROP) procurement, management and
application expertise through an array of value-added services and
other arrangements that include its Flexible Procurement
Solutions(TM) (FPS) service offerings as well as direct general
MROP sales through traditional distribution channels. The Company's
FPS service offerings emphasize and utilize IDG's specialized
knowledge in product applications and process improvements to
deliver out-sourced solutions and documented cost savings for
customers. Through these arrangements, IDG distributes a full line
of MROP products, specializing in cutting tools, abrasives, hand
and power tools, coolants, lubricants, adhesives and machine tools,
and IDG can supply at a competitive price virtually any other MROP
product that its customers may require. IDG has four operating
divisions organized into regional responsibility areas. IDG serves
over 20,000 active customers representing a diverse group of large
and mid-sized national and international corporations including
Honeywell International, Inc., The Boeing Company, Arvin Meritor,
Borg-Warner Inc., Pentair, Inc., as well as many local and regional
businesses. The company currently has a presence in 43 of the top
75 manufacturing markets in the United States. Flexible Procurement
Solutions(TM) IDG's Flexible Procurement Solutions(TM) (FPS) offer
customers an answer for the entire supply chain management process
for MROP materials. IDG recognizes that managing MROP materials is
a costly, time-consuming function for the industrial marketplace.
FPS services merge state-of-the-art technology with the expertise
of IDG personnel to deliver supply chain management services. In a
fully integrated supply relationship, IDG associates work directly
on-site at a customer's location to provide documented cost savings
from product application innovations, continuous process
improvements, more effective management of inventory, and many
other areas, all focused on reducing customer costs. Best of all,
these cost savings are quantified and documented and most go
directly to the customer's bottom line. Safe Harbor In addition to
the historical information contained herein, certain matters set
forth in this news release are forward-looking statements,
including but not limited to statements relating to expected
operating results. Industrial Distribution Group, Inc. warns that
caution should be taken in relying upon any forward-looking
statements in this release, as they involve a number of known and
unknown risks, uncertainties, and other factors including
heightened national security risks including acts of terrorism and
potential for war, that may cause actual results, performance, or
achievements of Industrial Distribution Group, Inc. to differ
materially from any such statements, including the risks and
uncertainties discussed in the company's Forms 10-K, Forms 10-Q,
filed by the Company under the caption "Certain Factors Affecting
Forward Looking Statements," or any 8-K filed or furnished by the
company each of which is incorporated herein by reference. For
Additional Information, Contact: Jack P. Healey Senior Vice
President and Chief Financial Officer Industrial Distribution
Group, Inc. (404) 949-2010 http://www.idglink.com/ DATASOURCE:
Industrial Distribution Group, Inc. CONTACT: Jack P. Healey, Senior
Vice President and Chief Financial Officer of Industrial
Distribution Group, Inc., +1-404-949-2010 Web site:
http://www.idglink.com/
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