W.W. Grainger (NYSE:GWW) has agreed to acquire AnFreixo from industrial conglomerate Votorantim Group for an unknown sum, the company said Tuesday.
The move broadens Grainger’s operations into Brazil, the largest maintenance, repair and operations market in Latin America.
Financial details were not disclosed in the press release.
"We're excited to enter Brazil through the acquisition of AnFreixo," president of Grainger international, Mike Pulick, said in a statement.
"Many of Grainger's customers have operations in Brazil and they're looking to Grainger to help them keep their operations running efficiently and keep their employees safe on the job."
"This acquisition is a great step forward in our continued focus on meeting the needs of businesses throughout the Latin American region," he added.
AnFreixo is a broad line distributor of maintenance, repair and operating supplies in Brazil. In 2011, it posted revenue of US$37 million. The company will operate under the name Grainger after the acquisition.
AnFreixo serves more than 2,000 customers from its distribution centre in Sao Paulo and through its team of sales professionals. A significant portion of AnFreixo's sales are to affiliates of its parent company, Votorantim Industrial.
As part of the deal, Grainger also announced on Tuesday it entered into a long-term supply agreement, under which Votorantim will continue to buy MRO products from AnFreixo.
Founded in 1927, Grainger sells everything from hand tools to pumps and plumbing supplies, as well as forestry and agriculture equipment, building and home inspection supplies.
Grainger operates in Canada, Mexico, the U.S., India and the Dominican Republic and is based in Lake Forest, Illinois.
The company’s share price closed Monday at $218.19 in trade. Its stock was inactive during pre-market trade Tuesday.