MSC Industrial Direct Co., the Melville-based distributor of industrial supplies and one of the largest public companies on Long Island, said Friday it will acquire the North America distribution business of the Barnes Group in a $550 million deal.
MSC, which is the area's seventh biggest public company by revenue, will finance the deal with available cash and a loan under a new line of credit, according to a news release. The deal is expected to close in MSC's third fiscal quarter later this year.
The Bristol, Conn.-based Barnes Group manufactures and distributes aerospace equipment. Its North American distribution operation, called BDNA, is headquartered in Cleveland and specializes in distribution of fasteners and other low-cost item. BDNA recorded sales of around $300 million in 2012.
Shares of both MSC and Barnes Group jumped up in morning trading on the news, with Barnes' stock rising over 12 percent and MSC ticking up nearly 3 percent before noon.