Growth is the strategy, said Dave Hadani, chairman of Chattanooga-based Bolts and Nuts Corp., on the day his company announced the acquisition of peer business U.S. Nuts and Bolts in Louisville, Ky.
Bolts and Nuts is a distributor of industrial parts, servicing factories and manufacturers with the bits and pieces needed to keep equipment and machinery up and running, and the third-party companies who also service industrial machinery for factories.
On Friday, Bolts and Nuts announced that it had acquired U.S. Nuts and Bolts, expanding the Chattanooga company's service footprint into additional parts of the Midwest.
Hadani said Bolts and Nuts will keep existing U.S. Nuts and Bolts employees, and eventually intends to add workers there to meet business demand as it's presented.
The industrial parts distributor Bolts and Nuts Corp. was founded in Chattanooga in 1979. In January, Bolts and Nuts moved into a new location across from Chattanooga State Community College on Amnicola Highway, doubling the company's footprint here. Company officials said Friday their eyes are on continual expansion, manifest in the addition of five facilities in only two years.
"We've been investing heavily in our growth, especially in Chattanooga," said Hadani.
Hadani said company officials' ultimate goal is to service American factories from here to California and everywhere in-between — the ultimate goal is establishing a coast-to-coast presence.
Right now, there are eight Bolts and Nuts locations in six states: Tennessee, Kentucky, Georiga, North Carolina, Nebraska and Illinois. The Louisville acquisition is the second Kentucky Bolts and Nuts location now. There is also a location in Danville, Ky.
Currently, there are less than 100 Bolts and Nuts employees company-wide, and Hadani said officials are looking to hire more people as the Bolts and Nuts footprint grows.
Adding distribution facilities in cities like Louisville is crucial to continually pushing Bolts and Nuts' borders outward, said Hadani on Friday, since delivery timeliness and accessibility to parts are crucial to commercial and industrial customers of Bolts and Nuts services.
"Our growth strategy is a combination of organic investment and organic growth, and growth by acquisition," he said.
Randy Crowdis, CEO of U.S. Nuts and Bolts, said in a statement Friday the acquisition by Bolts and Nuts lends the Louisville company the benefits and resources of a larger company.
"In combining with Bolts and Nuts, our team acquires the advantages of global scale while marrying up with a company whose core values are focused on delivering value to our four key stakeholders: customers, team members, community and suppliers," he said.
Hadani declined to release terms of the purchase since Bolts and Nuts is privately-held, but "obviously with acquisitions like this, we're investing in future growth," he said.
Contact staff writer Alex Green at email@example.com or 423-757-6480.