ATLANTA, Sept. 16 /PRNewswire-FirstCall/ -- Industrial Distribution Group,
Inc. (Nasdaq: IDGR) today announced the sale of its Cardinal Machinery
business unit to the existing local management team of that entity. Under
terms of the agreement, the management team of Cardinal Machinery assumed full
ownership of all facilities and debt and substantially all other liabilities,
effective September 16, 2005.
The sale of Cardinal Machinery unlocks value for Industrial Distribution
Group shareholders because the business unit no longer matched with the core
business and strategic direction of the Company. With 2004 revenues of
approximately $10 million out of the Company's total revenues of $529.2
million for the same period, Cardinal Machinery did not meet the strategic
objectives set by senior management of Industrial Distribution Group. The
sale allows Industrial Distribution Group to focus on core competencies
exclusively, while allowing the management team of Cardinal Machinery to do
the same.
Industrial Distribution Group has been transforming the industrial supply
marketplace by converting a commodity distribution business into a value-added
product and services company that helps U.S. manufacturers produce goods
faster, with less expense and with higher quality. Since pioneering a
product/service model, Industrial Distribution Group has generated nearly half
of its revenue from its value-added services. The sale of Cardinal Machinery
allows Industrial Distribution Group to further drive its vision of value-
added manufacturing products and services.
Cardinal Machinery offers a complete line of metal-working and fabrication
equipment, as well as tooling services and a full line of accessories to help
its customers achieve their production goals. Cardinal's operation will
remain in its Memphis, Tennessee location.
About IDG
Industrial Distribution Group, Inc. (Nasdaq: IDGR) is a nationwide
products and services company that creates a competitive advantage for
customers. The Company provides outsourced maintenance, repair, operating and
production (MROP) procurement, management and application expertise through an
array of value-added services and other arrangements that include its Flexible
Procurement Solutions(TM) (FPS) service offerings as well as direct general
MROP sales through traditional distribution channels. The Company's FPS
service offerings emphasize and utilize IDG's specialized knowledge in product
applications and process improvements to deliver out-sourced solutions and
documented cost savings for customers. Through these arrangements, IDG
distributes a full line of MROP products, specializing in cutting tools,
abrasives, hand and power tools, coolants, lubricants, adhesives and machine
tools, and IDG can supply at a competitive price virtually any other MROP
product that its customers may require.
IDG has four operating divisions organized into regional responsibility
areas. IDG serves over 20,000 active customers representing a diverse group
of large and mid-sized national and international corporations including
Honeywell International, Inc., The Boeing Company, Arvin Meritor, Borg-Warner
Inc., Pentair, Inc., as well as many local and regional businesses. The
company currently has a presence in 43 of the top 75 manufacturing markets in
the United States.
Flexible Procurement Solutions(TM)
IDG's Flexible Procurement Solutions(TM) (FPS) offer customers an answer
for the entire supply chain management process for MROP materials. IDG
recognizes that managing MROP materials is a costly, time-consuming function
for the industrial marketplace. FPS services merge state-of-the-art
technology with the expertise of IDG personnel to deliver supply chain
management services. In a fully integrated supply relationship, IDG
associates work directly on-site at a customer's location to provide
documented cost savings from product application innovations, continuous
process improvements, more effective management of inventory, and many other
areas, all focused on reducing customer costs. Best of all, these cost
savings are quantified and documented and most go directly to the customer's
bottom line.
Safe Harbor
In addition to the historical information contained herein, certain
matters set forth in this news release are forward-looking statements,
including but not limited to statements relating to expected operating
results. Industrial Distribution Group, Inc. warns that caution should be
taken in relying upon any forward-looking statements in this release, as they
involve a number of known and unknown risks, uncertainties, and other factors
including heightened national security risks including acts of terrorism and
potential for war, that may cause actual results, performance, or achievements
of Industrial Distribution Group, Inc. to differ materially from any such
statements, including the risks and uncertainties discussed in the company's
Forms 10-K, Forms 10-Q, filed by the Company under the caption "Certain
Factors Affecting Forward Looking Statements," or any 8-K filed or furnished
by the company each of which is incorporated herein by reference.
For Additional Information, Contact:
Jack P. Healey
Senior Vice President and
Chief Financial Officer
Industrial Distribution Group, Inc.
(404) 949-2010
http://www.idglink.com
SOURCE Industrial Distribution Group, Inc.
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Related links:
http://www.idglink.com
CONTACT:
Jack P. Healey, Senior Vice President and
Chief Financial Officer of Industrial Distribution Group, Inc.,
+1-404-949-2010
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