ACAS Sells Imperial Supplies

American Capital has sold Imperial Supplies LLC, a distributor of facilities maintenance products, to Grainger (NYSE: GWW). No financial terms were disclosed

Grainger (NYSE: GWW), North America’s leading broad line distributor of facilities maintenance products, today announced it has signed and closed an all cash acquisition of Imperial Supplies, LLC from American Capital, Ltd. (Nasdaq: ACAS). No other terms of the agreement were disclosed. Grainger anticipates the transaction should be accretive to earnings by $.03-$.05 a share in 2010 including product and transportation cost savings.

Imperial is a national distributor of quality maintenance products and aftermarket components for the vehicle and fleet industry. The company has built its strong reputation by offering customers highly efficient methods to order and monitor their purchases, serving the fleet market since 1958. In 2008, Imperial had sales of $67 million.

“Imperial Supplies is a leading player in the $4 billion fleet maintenance industry and we are excited to begin working together,” said Mike Pulick, President of Grainger’s U.S. Businesses. “In addition to the financial benefits for our shareholders, we anticipate cross selling opportunities by offering Imperial customers access to Grainger’s broad product offering and national distribution scale and Grainger customers access to the 20,000 fleet maintenance products Imperial carries.”

The business will continue to operate as Imperial Supplies, LLC under Grainger’s Specialty Brands business and will be led by Rob Gilson, Imperial’s CEO. Gilson will report to Ralph Howard, Vice President, Specialty Brands, and together they will leverage Grainger’s expertise and resources to profitably grow market share.

“We share common values that focus on serving customers with the utmost integrity,” said Gilson. “Going forward, this is a big win for Imperial customers because they have our ongoing commitment to superior service combined with the scale of Grainger’s industry leading network.”

Grainger’s Specialty Brands consists of Lab Safety Supply (serving lab and safety professionals), Ben Meadows (serving forestry professionals), Gempler’s (serving professionals in the agriculture and horticulture industries), Professional Equipment/Construction Book Express (serving inspection, electrical, HVAC, engineering and building professionals), Rand (serving facility and warehouse professionals), McFeely’s (serving professional woodworkers), AW Direct (serving towing and service vehicle professionals) and Highsmith (serving library and school professionals).

About Grainger

W.W. Grainger, Inc. (NYSE: GWW), with 2008 sales of $6.9 billion, is the leading broad-line supplier of facilities maintenance products serving businesses and institutions in the United States, Canada, Mexico, China, India and Panama. Through a highly integrated network including nearly 600 branches, 18 distribution centers and multiple Web sites, Grainger’s employees help customers get the job done, saving them time and money by having the right products to keep their facilities running.

About Imperial Supplies, LLC

Imperial Supplies, headquartered in Green Bay, Wisconsin, was founded in 1958. Imperial serves diverse vehicle and fleet maintenance end-markets with a customer focused sales and service model. The company currently operates four distribution centers in Green Bay, WI; Charlotte, NC; Dallas, TX; and Reno, NV.

About American Capital

American Capital is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has $11 billion(1) in capital resources under management and nine offices in the U.S., Europe and Asia. For further information, please refer to