Grainger Announces Agreement to Divest Grainger China

Rhea-AI Summary

Grainger (NYSE: GWW) announced the sale of its distribution business in China to a management team and Sinovation Ventures. This divestiture aims to enable Grainger to concentrate on its key operations and regions while retaining its Global Sourcing activities in China. The deal, which is not contingent on financing but requires standard regulatory approvals, is expected to close later this year. Grainger's 2019 sales reached $11.5 billion, emphasizing its leading position in MRO products primarily across North America, Japan, and Europe.

Positive

• Focused strategic divestiture to enhance core business operations.
• Retaining Global Sourcing operations in China for continued product supply.

Negative

• None.

CHICAGO, June 22, 2020 /PRNewswire/ -- Grainger (NYSE: GWW), the leading broad line supplier of maintenance, repair and operating (MRO) products serving businesses and institutions, today announced it has entered into a definitive agreement to sell its distribution business in China, Grainger China LLC (Grainger China), to a purchaser owned by the Grainger China management team and Sinovation Ventures, a China-based venture capital firm.    

This divestiture will better enable Grainger to focus on its key businesses and geographies.  To support this portfolio, the company will maintain its Global Sourcing operations based in China.  Grainger's Global Sourcing provides the company with private label products in categories that include safety, cleaning, electrical, motors and tools.

"I applaud the Grainger China team members for doing a remarkable job to drive profitable growth over the years," said DG Macpherson, Chairman and CEO of Grainger.  "The management team is strong and well positioned for even greater success moving forward.  Grainger continues to have a relentless focus on providing customer value through our high-touch and endless assortment offerings, and doing so in the geographies that make the most sense for us."

This transaction is not subject to any financing condition but is subject to the standard regulatory approvals.  The deal is expected to close later this year.

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About Grainger
W.W. Grainger, Inc., with 2019 sales of $11.5 billion, is North America's leading broad line supplier of maintenance, repair and operating (MRO) products, with operations primarily in North America, Japan and Europe.

 

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SOURCE W.W. Grainger, Inc.

FAQ

What is the recent divestiture announcement by Grainger regarding GWW?

Grainger has announced an agreement to sell its distribution business in China to a management team and Sinovation Ventures.

What are the benefits of Grainger's divestiture of its China business?

The divestiture allows Grainger to focus on its key businesses and geographies while retaining Global Sourcing operations.

When is the divestiture of Grainger China expected to close?

The transaction is expected to close later in 2020, pending standard regulatory approvals.

What were Grainger's sales figures in 2019?

Grainger reported sales of $11.5 billion in 2019.

Who will acquire Grainger's China distribution business?

The business will be acquired by a purchaser owned by the Grainger China management team and Sinovation Ventures.