Watch Live

Tweet TWEET

Billionaire’s MSC Acquires Barnes Unit for $550 Million

Feb. 22 (Bloomberg) -- MSC Industrial Direct Co., the office and industrial equipment supplier that’s made Chairman Mitchell Jacobson a billionaire, said it will buy Barnes Group Inc. (B)’s North American distribution business for $550 million.

The deal will boost earnings by 15 cents to 20 cents a share in fiscal 2014, and 30 cents to 40 cents in 2015, MSC said today in a statement. Melville, New York-based MSC is expanding as customers buy more power saws, snowblowers and copy paper, sending the stock up 13 percent this year.

The Barnes unit is “a well-run, high-margin business with a strong value proposition,” MSC Chief Financial Officer Jeff Kaczka said in the statement. “We are getting a new platform that provides several growth avenues.”

Jacobson is MSC’s largest shareholder and had a net worth of $1.3 billion as of Feb. 20, according to the Bloomberg Billionaires Index. He owns more than 9.2 million shares, most of which is Class B stock that converts to Class A shares on a 1-for-1 basis, according to filings with the U.S. Securities and Exchange Commission.

MSC is the world’s third-largest office and industrial equipment provider. Its Feb. 19 close of $86.54 was the highest since MSC’s 1995 initial public offering. The stock climbed 2.6 percent to $85.24 today. Its 2013 advance has outpaced the 8.2 percent gain for the Standard & Poor’s Midcap 400 Index.

Barnes, based in Bristol, Connecticut, makes metal parts and distributes industrial products including aircraft engine components. The company’s shares surged 15 percent today to $28.10 for their biggest daily gain since April 2009.

To contact the reporters on this story: David Risser in London at drisser@bloomberg.net; Brooke Sutherland in New York at bsutherland7@bloomberg.net;

To contact the editors responsible for this story: Ed Dufner at edufner@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.