Grainger Invests in Japan's MRO Market

June 26, 2009
In its second move in the past month to expand internationally, W.W. Grainger Inc., Lake Forest, Ill., announced that it will increase its stake in the Japanese firm MonotaRO

In its second move in the past month to expand internationally, W.W. Grainger Inc., Lake Forest, Ill., announced that it will increase its stake in the Japanese firm MonotaRO. MonotaRO was created in 2000 as a joint venture between Grainger and Sumitomo to supply maintenance, repair and operating (MRO) supplies in Japan.

According to a Grainger press release, MonotaRO has become a major supplier in the Japanese MRO market, the second largest industrial market in the world. MonotaRO offers more than 110,000 products to more than 320,000 customers.

“The Japanese MRO market is estimated at $50 billion and MonotaRO has been growing by helping thousands of small and mid-size businesses get the quality products they need to keep their facilities running,” said Jim Ryan Grainger’s chairman, president and CEO. “This increased investment, along with our recent acquisition of Asia Pacific Brands India Private Limited (see EM, June 12, p. 1) demonstrates Grainger’s commitment to grow its global presence. We plan to continue to pursue attractive opportunities in global markets.”

In 2008, MonotaRO had revenues of $136 million. Grainger plans to boost its stake to 53 percent and become a majority owner of MonotaRO through a $4 million investment. Grainger, which holds a 38 percent stake in the company, said it will begin a tender offer bid process of 380,000 shares of MonotaRO in August. It also has an agreement with Sumitomo Corp. to commit another 380,000 shares. The tender offer is expected to be completed in the third quarter.

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