June 19, 2009 (FinancialWire) — W.W. Grainger, Inc. (NYSE: GWW), a distributor of facilities maintenance products, said it plans to become a 53% majority owner of MonotaRO, a direct marketer of maintenance, repair and operating supplies in Japan. Grainger said it plans to invest around $4 million through a tender offer bid process later this summer.

Established in 2000 in Osaka, MonotaRO started as a joint venture company between Grainger and Sumitomo Corp. supplying MRO products in Japan. MonotaRO offers more than 110,000 products to more than 320,000 customers. In 2008, MonotaRO posted revenues of $136 million and operating earnings of $11 million.

Grainger CEO Jim Ryan said, “This increased investment, along with our recent acquisition of Asia Pacific Brands India Private Ltd. demonstrates Grainger’s commitment to grow its global presence.”

Upon completion of MonotaRO’s repurchase of around 1.83 million shares, Grainger’s ownership would increase from 38% to 48%. In early August, Grainger plans to tender in Japan for 380,000 shares, around 5% of MonotaRO shares, at a price of 1,010 Yen per common share and has an agreement with Sumitomo which will commit 380,000 shares.

Chicago-based W.W. Grainger posted 2008 sales of $6.9 billion. The company is a broad line supplier of facilities maintenance products serving businesses and institutions in the United States, Canada, Mexico, China and Panama.

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