Calling
it part of a strategy to offset some of the seasonality inherent in its
business, Ariens Co. said Monday it is acquiring three direct marketing brands
from W.W. Grainger Inc.
The
brands are Gempler's, Ben Meadows and AW Direct. All three brands market
outdoor-related products including landscape and horticulture equipment, gear
for fighting wildfires and tow truck equipment.
The
brands will become part of Brillion-based Ariens on Jan. 1. Terms of the
agreement were not disclosed, but, "the dollars are fairly
significant," said Dan Ariens, CEO of Ariens and the fourth generation of
the family to lead the company. "It adds a big new revenue base to our
business."
Grainger
said in a statement that the three brands total had estimated revenue of $90
million in 2013.
The
three brands will help smooth Arien's revenue, which is skewed heavily toward
fall and winter when sales of its snow blowers spike.
"When
we look at their revenues over quarters they are much more level," Ariens
said.
Ariens
will add 250 new employees total at an office in Madison and a distribution
site in Janesville as a result of the transaction, putting its total employment
at about 2,300.
The
company has been seeking an acquisition as a means to diversify its portfolio
of businesses, Ariens said.
"We've
been looking for a couple of years to find something that fits like this,"
Ariens said.
Ariens
operates in the outdoor power equipment manufacturing as well as distribution
segments in consumer and professional markets. The company's brands include
Sno-Thro snow blowers; Countax and Westwood lawn tractors; and Gravely and
Parker commercial equipment for the landscape management, facilities
maintenance and sports field sectors. Ariens' affiliates, Stens Corp., J Thomas
and Ariens Pty Ltd. in Australia, supply replacement parts to the outdoor power
equipment industry.
"As
we grow the distribution side of the business, these companies represent strong
niche segments that fit nicely with our current portfolio of outdoor
brands," the company said in a statement.
The
acquisition is "another way to talk to the same customer with a different
set of products," Ariens said.
Ariens
will be taking over leased space in Madison as well as leasing space in the
Janesville distribution center from Grainger, said Ariens spokeswoman Ann
Stilp, in an email.
Ariens
will operate the acquired brands along with Stens and J. Thomas as part of a
newly formed specialty brands group.
The
location of the businesses Ariens is acquiring played a role in the agreement,
Dan Ariens said.
"We
want to invest in Wisconsin wherever we can," he added. "We see
opportunity here."
Ariens
was established in 1933.
W.W.
Grainger Inc., is based in Lake Forest, Ill., and had 2012 sales of $9 billion.
The company is a business-to-business distributor of products used to maintain,
repair or operate facilities.
Joe Taschler www.jsonline.com
