MSC Industrial acquires Iowa-based DECO Tool for $42 million

MSC Industrial Direct Co., Long Island’s third-largest public company based on 2016 revenue, has acquired an Iowa distributor of metalworking products for about $42 million, the company announced Monday.

MSC’s acquisition of DECO Tool Supply Co., based in Davenport, was completed on July 31.

A company spokesman said the acquisition would have no impact on MSC’s Melville headquarters. MSC has a second headquarters in Davidson, North Carolina.

DECO has about 190 employees in offices primarily spread across the Midwest and posted 2016 sales of about $100 million.

MSC president and chief executive Erik Gershwind said in a statement that the DECO deal aligns with MSC’s goals.

“DECO is a perfect fit with our strategic plan as the acquisition enhances our metalworking business, which is the foundation of MSC,” he said.

Gershwind said MSC, a distributor of metalworking, maintenance and repair products and services with more than 6,000 employees, plans to offer its product line through DECO’s sales network.

“Leveraging the strengths of DECO and MSC will provide our customers greater product offerings, service levels and value-added solutions to help them succeed,” said DECO president Dennis Quinn.

MSC, which reported revenue of $2.9 billion in 2016, has 12 customer fulfillment centers and 85 branch offices, according to its most recent annual report.

Shares of MSC fell 0.9 percent Monday to close at $70.31 on the New York Stock Exchange. They are down 3.5 percent in the past 12 months.

By Ken Schachter

kenneth.schachter@newsday.comkschach

Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.