Grainger – Grainger Announces Agreement to Sell E&R Industrial Sales, Inc.

December 12, 2023
Grainger

CHICAGO, Dec. 12, 2023 /PRNewswire/ — Grainger (NYSE: GWW), a leading broad line distributor of maintenance, repair and operating (MRO) products serving businesses and institutions, today announced the sale of E&R Industrial Sales, Inc. to Paradigm Equity Partners, a Los Angeles-based private equity firm. 

 

E&R Industrial became a subsidiary of W.W. Grainger, Inc. in 2013.

“We are excited about this next stage of growth with Paradigm Equity Partners,” said Jason D’Souza, President, E&R Industrial Sales, Inc. “E&R Industrial is firmly committed to a smooth transition for our customers, suppliers and team members.”

 

Grainger will continue to serve customers with maintenance metalworking products, services and expertise while focusing on its core business of maintenance, repair and operating (MRO) products and services. Customers will continue to have access to E&R’s assortment when purchasing through Grainger, while E&R customers will have access to Grainger’s MRO-leading assortment when purchasing through E&R.

Details of the agreement were not publicly disclosed.

 

SourceGrainger

EMR Analysis

More information on Grainger: See the full profile on EMR Executive Services

More information on D.G. Macpherson (Chairman and Chief Executive Officer, Grainger): See the full profile on EMR Executive Services

 

More information on E&R Industrial Sales, Inc. by Paradigm Equity Partners: https://www.erindustrial.com/ + Founded in 1969, E&R Industrial continues to evolve and expand. In August 2013, E&R Industrial joined the Grainger family of companies. E&R’s metalworking knowledge and experience combined with Grainger’s vast assortment of MRO products, helps to bring market leading solutions directly to our customers.

More information on Jason D’Souza (President, E&R Industrial Sales, Inc. by Paradigm Equity Partners): https://www.linkedin.com/in/jason-d-souza-b28167/ 

More information on Paradigm Equity Partners: https://www.paradigmequitypartners.com/ + Paradigm Equity Partners is a Los Angeles-based private equity firm focused on acquiring companies in the lower middle-market. Our experience is working in complex, time sensitive situations where companies benefit from a capital infusion and operational improvements. We focus on sectors where we have experience and seek to partner with management teams with a track record of success and a desire to execute on well-defined margin-expansion and growth initiatives.

  • Revenu: $30 to $500 million 
  • EBITDA: Negative to $25 million (sub-20% margins) 
  • Entreprise value: Up to $100 million 
  • Add-ons: Any Size

More information on Roman Zelinsky (Founder & Managing Partner, Paradigm Equity Partners): https://www.linkedin.com/in/romanzelinsky/ 

 

 

 

EMR Additional Notes:

  • OEM (Original Equipment Manufacturer):
    • Company that produces parts and equipment that may be marketed by another manufacturer.
    • Usually tagged on hardware or software that’s less expensive than normal retail products.
    • An OEM refers to something made specifically for the original product, while the aftermarket refers to equipment made by another company that a consumer may use as a replacement.
    • Electrical OEM manufacturers makes equipment or components that are then utilized by its customer, another manufacturer or a reseller, usually under the final reseller’s brand name. OEMs come in many shapes and sizes, making complete devices or specific components.
  • MRO (Maintenance, Repair and Operations):
    • It refers to all the activities needed to keep a company’s facilities and production processes running smoothly.
    • Supplies consumed in the production process that do not become part of the end product.
    • Maintenance professionals use MRO items to maintain company structures, equipment, and assets. Purchases that fall under MRO include maintenance tools and equipment, replacement parts for production equipment, consumables such as personal protective equipment (e.g., safety goggles, work gloves), cleaning products and office supplies.
  • Integrated Supply:
    • Integrated supply chain management refers to an enterprise resource planning approach to supply chain management.
    • Large-scale business strategy that brings as many links of the chain as possible into a closer working relationship with each other. The goal is to improve response time, production time, and reduce costs and waste.
    • Often takes the form of integrated computer systems. For example, the supplier’s computer system may be set up to deliver real-time data to the buyer’s computer. This allows the buyer to know: The current status of all orders., which products are in the supplier’s inventory …
    • Integration, operations, purchasing and distribution are the four elements of the supply chain that work together to establish a path to competition that is both cost-effective and competitive.
    • Integrated supply is the end-to-end process of managing the MRO supply chain (spare parts) through consolidated sourcing practices, storeroom operations, inventory management, data governance, and continuous improvement. The objective is to leverage spend, reduce transactions, and cut inventory and associated costs while eliminating risk around critical spares.