Fastenal Sells DIY Business

Oct. 11, 2002
Fastenal Co., Winona, Minn., has sold certain assets and liabilities of its retail fastener and related hardware business currently marketed under the

Fastenal Co., Winona, Minn., has sold certain assets and liabilities of its retail fastener and related hardware business currently marketed under the name or brands of FAS-N-IT and Anchor Wire to The Hillman Group Inc. of Cincinnati.

Fastenal is a hybrid distributor that sells fasteners, safety supplies and electrical equipment. The Hillman Group is a large supplier of fasteners to the hardware and home improvement industry.

The DIY business, which has locations in Rockford, Ill., and Nashville, Tenn., has sales of approximately $2 million per month. Fastenal acquired this business on Aug. 31, 2001, and anticipates a modest gain from the sale.

The Illinois operation, which sells prepackaged products such as bolts, screws, washers, hex nuts and concrete anchors, has operated under the brand FAS-N-IT.

The Tennessee operation, which sells products such as wire, hooks, brads and nails, has operated under the brand Anchor Wire.

“While we continue to believe the DIY business represented a good opportunity for Fastenal, we see this sale as an opportunity to focus all our energy on our stores and the markets we sell into,” said Will Oberton, Fastenal president.

Fastenal had sales of approximately $818 million in 2001 — about $8 million came from the DIY business, which Fastenal had owned for the last four months of the year.

Fastenal said sales for the third quarter rose 13.7 percent over the comparable quarter in 2001, or 11.9 percent adjusting for the additional business day in the latest quarter compared to the year-ago period.

Fastenal said it has continued to aggressively expand its store base during the current weak economic environment. On Sept. 30, 2000, Fastenal owned and operated 861 store sites. By September 2002, this number had increased to 1,139. The company plans to continue store expansion as part of a “customer service project.” This project includes expanding the products stocked at all store locations.