XLCS Partners, Inc., a middle market investment bank, announced that it served as an exclusive advisor to Tower Fasteners in its sale to All Integrated Solutions (AIS), a subsidiary of MSC Industrial Supply.
Tower is a second-generation value-added distributor of OEM fasteners and other components to a diverse set of industrial, medical equipment, aerospace, military, electronics, security, and safety sectors. Founded in 1967, the company operates eight distribution centers along the East Coast and in the Southwestern regions of the United States, Mexico, and Europe.
In 2018, Tower opened its first European distribution center in Dublin, Ireland. Tower will continue to operate under its current name after becoming an MSC company. Mark Shannon, president of Tower, will continue to lead the business, which has approximately 100 associates.
MSC’s acquisition of Tower, made through its AIS subsidiary, expands the company’s presence in the OEM fastener market, which it entered in 2018 with the acquisition of AIS, a value-added distributor of industrial fasteners and components, MRO supplies and assembly tools based in Wisconsin.
Similarly, MSC will extend Tower’s production fastener solutions to its manufacturing customers. Founded in 1941, MSC is a leading North American distributor of a broad range of metalworking and maintenance, repair, and operations (MRO) products and services. As a $3.2 billion company with more than 6,500 associates and 3,000-plus suppliers, MSC helps its customers drive greater productivity, profitability, and growth with approximately 2 million products, inventory management and other supply chain solutions.
“We could not have been more pleased with the job XLCS Partners did advising us during the sale of our business,” said Bryan Shannon, Tower CEO. “From the introductory call with Anthony Contaldo to the final closing call, every person who worked with us was professional, thorough, and pleasant. This was our first experience in the M&A world and Anthony and his team guided us every step of the way. XLCS was the perfect advisory firm for the Shannon family.”
XLCS acted as the exclusive M&A advisor to Tower and the transaction was led by Anthony Contaldo, managing partner and Jay Cremer, VP. The transaction was completed August 1, 2022.