Grainger Announces Agreement to Divest Grainger China
Company remains focused on profitable growth in key geographies Grainger continues its Global Sourcing program in China
Jun 22, 2020, 16:01 ET
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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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.
SOURCE W.W. Grainger, Inc.
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