MSC Industrial Direct Co., Inc. "MSC" or the "Company," one of the largest direct marketers and premier distributors of Metalworking and Maintenance, Repair and Operations ("MRO") supplies to industrial customers throughout the United States, announced plans to build its fifth US-based Customer Fulfillment Center ("CFC"), or distribution center, in Columbus, Ohio, in order to support its growth strategy and maintain its signature service model as the Company grows.
Pending final approvals, the Company will purchase 70 acres of land in Columbus, intending to break ground on an approximately 400,000 square foot facility in late 2012. The Company expects to complete construction and begin operation in late summer or early fall of 2014. Columbus 2020, City of Columbus, State of Ohio, JobsOhio, Franklin County, Columbus-Franklin County Finance Authority, and Columbia Gas have worked to structure an attractive incentive package, with tax and other incentives totaling approximately $9 million over the course of ten years. MSC plans to create approximately 300 new full time jobs in Columbus by year-end 2017. The site will also be designed to accommodate future expansion as the Company continues to grow.
"We are pleased to announce our plans for our fifth domestic CFC in Columbus, Ohio," said Doug Jones, Executive Vice President, Global Supply Chain Operations of MSC. "Our current success and growth plan requires us to add a new CFC to support our world-class service model as we continue to grow. After conducting a thorough review, Columbus provided the most compelling opportunity to expand our distribution network in the most cost-effective manner, in a region that fits well with our existing network and provides easy access to key markets and resources, as well as a rich pool of local talent. Over the long-term, our investment in this facility will yield high returns as we more efficiently manage and expand our service volume."
Jones continued, "We are grateful for the efforts of our partners in Ohio for working with us to make this possible, and we look forward to expanding our presence in the Columbus community."
The Company expects to invest approximately $55 million in capital expenditures to construct and outfit the facility in Columbus, substantially all of which is expected to be spent over the course of fiscal years 2013 and 2014. At the present time, the Company estimates that the effect of building and start up costs, net of incentives, will be neutral to earnings and that additional operating costs upon opening, after the effect of incentives and reduced costs at other fulfillment centers, will be minimal.
About MSC Industrial Direct Co., Inc.
MSC Industrial Direct Co., Inc. is one of the largest direct marketers and premier distributors of Metalworking and Maintenance, Repair and Operations ("MRO") supplies to industrial customers throughout the United States. MSC employs one of the industry's largest sales forces and distributes approximately 600,000 industrial products from approximately 3,000 suppliers to approximately 325,000 customers. In-stock availability is approximately 99%, with next day standard delivery to the contiguous United States on qualifying orders up until 8:00 p.m. Eastern Time. MSC reaches its customers through a combination of approximately 18 million direct-mail catalogs, 107 branch sales offices, 1,101 sales people, the Internet and associations with some of the world's most prominent B2B eCommerce portals. For more information, visit the Company's website at http://www.mscdirect.com.
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