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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"forward-looking statements." Forward-looking statements can
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Forward-looking statements are not guarantees of future performance
and are subject to a number of assumptions, risks and
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cause actual results to differ materially from such statements.
Forward-looking statements include, but are not limited to,
statements about future strategic plans and future financial and
operating results. Important factors that could cause actual
results to differ materially from those in the forward-looking
statements include, among others: the unknown duration and
economic, operational and financial impacts of the global outbreak
of the Coronavirus (COVID-19 pandemic) and the actions taken or
contemplated by governmental authorities or others in connection
with the pandemic on the company's businesses, its employees,
customers and suppliers, including the uncertain duration of
mandated shut-downs for our customers and suppliers, changes in our
customers' product needs, our suppliers' inability to meet
unprecedented demand for COVID-19 related products, the potential
for government action to allocate or direct products to certain
customers which may cause disruption in our relationships with
other customers, and disruption caused by business responses to
COVID-19, including working remote arrangements, which may create
increased vulnerability to cybersecurity incidents; higher product
costs or other expenses; a major loss of customers; loss or
disruption of sources of supply; increased competitive pricing
pressures; failure to develop or implement new technology
initiatives or business strategies; failure to adequately protect
intellectual property or successfully defend against infringement
claims; fluctuations or declines in the company's gross profit
percentage; the company's responses to market pressures; the
outcome of pending and future litigation or governmental or
regulatory proceedings, including with respect to wage and hour,
anti-bribery and corruption, environmental, advertising, consumer
protection, pricing (including disaster or emergency declaration
pricing statutes), product liability, safety or compliance, or
privacy and cybersecurity matters; investigations, inquiries,
audits and changes in laws and regulations; failure to comply with
laws, regulations and standards; government contract matters;
disruption of information technology or data security systems
involving us or third parties on which we depend; general industry,
economic, market or political conditions; general global economic
conditions including tariffs and trade issues and policies;
currency exchange rate fluctuations; market volatility, including
volatility or price declines of the company's common stock;
commodity price volatility; labor shortages; facilities disruptions
or shutdowns; higher fuel costs or disruptions in transportation
services; pandemic diseases or viral contagions; natural and other
catastrophes; unanticipated and/or extreme weather conditions; loss
of key members of management; our ability to operate, integrate and
leverage acquired businesses; changes in effective tax rates;
changes in credit ratings or outlook; the company's incurrence of
indebtedness and other factors which can be found in our filings
with the Securities and Exchange Commission, including our most
recent periodic reports filed on Form 10-K and Form 10-Q, which are
available on our Investor Relations website. Forward-looking
statements are given only as of the date of this communication and
we disclaim any obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise, except as required by law.
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.