Grainger Agrees To Buy Cromwell In GBP310 Mln Deal - Quick Facts

(RTTNews) - Grainger (GWW), a broad line distributor of maintenance, repair and operating or MRO products serving businesses and institutions, said it has entered into a definitive agreement to acquire Cromwell Group (Holdings) Limited, together with its subsidiaries on a cash free, debt free basis for 310 million pounds in cash.

The transaction is expected to be completed in early September. The acquisition is estimated to be immediately accretive in 2015 and $0.10 to $0.15 accretive to Grainger's 2016 earnings per share.

Founded in 1970, Cromwell is the largest independent MRO distributor in the United Kingdom, serving more than 35,000 industrial and manufacturing customers worldwide.

Sales for the fiscal year ending August 31, are forecast to be 283 million pounds with the vast majority coming from the U.K.; EBITDA margins are expected to be approximately 10 percent.

Upon completion of the transaction, Grainger intends to operate Cromwell as a standalone business unit, led by its Managing Director Michael Kerins.