Grainger and Works.com Also Form Strategic Partnership
CHICAGO and AUSTIN, Texas, June 12 /PRNewswire/ -- Grainger (NYSE: GWW)
and Works.com today announced that they have signed a definitive agreement to
combine Grainger's OrderZone.com, a leading B2B multi-supplier Internet
marketplace, with Works.com, a leading Internet business purchasing service.
The combination will provide small and midsize businesses with one of the most
advanced online business purchasing services and e-marketplaces for indirect
business products.
In addition to contributing the OrderZone business and assets, Grainger
will invest an additional $21 million in Works.com and deliver the Works.com
purchasing service and e-marketplace to 1.4 million small and midsize business
customers through Grainger.com . For its contributions, Grainger will take a
40 percent equity stake in Works.com , which is subject to certain voting and
transfer restrictions. Grainger Group President Donald E. Bielinski will hold
one of seven seats on the Works.com board of directors. Works.com co-founder
and CEO, Bo Holland, will continue as CEO, setting the strategic direction and
managing day-to-day operations of the company. Offices will be located in
both Austin, Texas and Chicago, Illinois, and the new company will retain the
name Works.com .
The transaction has been approved by the boards of directors of Grainger
and Works.com . It is subject to approval from Works.com shareholders, which
is expected within 30 days, as well as regulatory approvals and customary
closing conditions. Grainger and Works.com anticipate completing the
transaction by September 30, 2000.
"We fully expect that the combined strengths of OrderZone.com and
Works.com will generate growth and create outstanding new business
opportunities in the B2B market space," said Richard L. Keyser, Grainger's
chairman and chief executive officer. "Works.com will build critical mass
more quickly in an environment where time to market is essential."
Keyser added, "Our strategic relationship, which we are announcing
separately today, provides a best-in-class online purchasing service and
e-marketplace for small and midsize businesses. By forging this relationship,
we have benefited customers from both Grainger.com and Works.com ."
"Our strategic partnership with Grainger allows us to provide our
customers and our partners' customers access to the most comprehensive online
purchasing service and e-marketplace for small and midsize businesses," said
Bo Holland, co-founder and CEO of Works.com . "This enhancement, along with
the addition of OrderZone.com's employees to our team, and our ability to
allow other leading e-commerce sites to leverage our offerings for their
customers, helps to solidify our position as the No. 1 purchasing service and
e-marketplace for small and midsize businesses."
OrderZone.com , launched in May 1999, was recently ranked among the top
three B2B websites by Advertising Age's Business Marketing and offers small
and midsize companies the convenience of one-stop shopping. OrderZone.com
further reduces procurement costs by offering one invoice from all suppliers.
With a single search, customers can access products from Lab Safety Supply,
Grainger Industrial Supply, Corporate Express, Cintas, VWR Scientific
Products, Avnet Electronics, Fastenal and Motion Industries. For more
information, visit http://www.orderzone.com .
About Works.com (http://www.works.com)
Works.com is an Internet business purchasing service that automates the
purchasing process and gives small and midsize companies volume purchasing
power. With Works.com , companies can increase buying efficiency and control
spending more effectively by automating and streamlining their purchase
process -- from purchase request and approval to ordering, tracking, and
reporting. Works.com's wholesale marketplace offers discounts and fast
delivery on 30,000 business products, including computer software and
hardware, business machines, cellular communication devices and services,
office supplies, furniture and maintenance and janitorial supplies. And,
Works.com cuts up to 30 percent off customers' monthly supplies bill by
combining customer purchasing power to secure even deeper volume discounts on
hundreds of their "most-used" products. Headquartered in Austin, Texas,
Works.com is funded by Bowman Capital, Hummer Winblad, Merrill Lynch, Presidio
Venture Partners, and Trellis Partners. Bill Gurley of Benchmark Capital is a
member of the Works.com board of directors.
About Grainger:
W.W. Grainger, Inc. (GWW), with 1999 sales of $4.5 billion, is the leading
North American provider of maintenance, repair, and operating supplies and
related information to businesses and institutions. Grainger shares are
traded on the New York and Chicago stock exchanges. For more information,
visit Grainger online at http://www.grainger.com .
This document contains statements that are not historical facts and are
forward-looking. The forward-looking statements (generally identified by
words or phrases indicating a projection or future expectation) are based on
current expectations and beliefs of the managements of Grainger and
Works.com . Some of them are subject to risks and uncertainties the outcome
of which could result in actual future performance being materially different
from the performance indicated. As concerns Grainger, the forward-looking
statements should be read in conjunction with Grainger's most recent annual
report, as well as the Grainger's Form 10-K and other reports filed with the
Securities and Exchange Commission, containing a discussion of Grainger's
business and of various factors that may affect it.
SOURCE W. W. Grainger, Inc.
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Related links:
http://www.Grainger.com
Company News On-Call:
http://www.prnewswire.com/comp/953850.html or fax,
800-758-5804, ext. 953850
CONTACT:
Janis K. Tratnik of Grainger, 847-535-4339;
or Karl Scholz of Works.com, 512-685-8650
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