MSC Industrical Supply is one of the largest industrial equipment distributors in the United States, distributing more than 1.5 million metalworking and other industrial products.
In accordance with the equity purchase agreement, Tower will continue to operate under its current name once it becomes an MSC company. Tower's President, Mark Shannon, will continue to lead the company, which has approximately 100 employees. In calendar 2021, Tower generated approximately $35 million in revenue. Tower's acquisition by MSC, made through its All Integrated Solutions (AIS) subsidiary, expands MSC's presence in the OEM fastener market, which it entered in 2018 with the acquisition of AIS, a Wisconsin-based value-added distributor of industrial fasteners, components, and maintenance supplies.
AIS's existing Midwest locations are complemented by Tower's growing footprint. In addition to eight distribution centers located on the East Coast, the company also operates in Mexico and Europe. Manufacturing sectors served by Tower include industrial, electronics, medical, aerospace, defense, and security, fire and safety. Tower's operations will be maintained by MSC, providing Tower's customers with access to MSC's 2 million+ product portfolio for full metalworking and MRO support. Tower's production fastener solutions will be made available to MSC's manufacturing clients as well. According to MSC's estimates, the acquisition will be largely neutral to its fiscal 2022 earnings and slightly accretive to its fiscal 2023 earnings.
“We are excited to add Tower Fasteners to our growing portfolio of businesses, all focused on helping manufacturers solve their mission-critical challenges,” said Erik Gershwind, MSC President and CEO. “Tower will expand our presence in the OEM fastener market and provide an entrée into new end markets like electronics and medical equipment. We look forward to supporting the growth and success of their customers together.”
AIS president Nick Ruetz also stated, “Tower’s geographic footprint on the East Coast and in the Southwest complements our strong presence in the Midwest. AIS and Tower have worked together on industry-related matters for many years. We’re looking forward to partnering to expand our reach in serving OEM customers and extending MSC’s full array of solutions to improve the effectiveness and efficiency of their operations.”
According to Tower Fasteners' president, Mark Shannon, MSC, AIS and Tower share a passion for providing customers with high-touch, custom solutions to support their MRO needs. “MSC is a recognized and respected leader in the industrial supply distribution industry. We’re excited to join forces with MSC and AIS to bring even greater value to our customers,” Shannon said.
