A financial analysis of the U.S. Postal Service by the Postal Regulatory Commission revealed a net loss of $5.5 billion for the agency in 2014, bringing its total net deficit since the passage of the Postal Accountability and Enhancement Act to $51.7 billion. That 2006 legislation required USPS to pre-fund its retirees' health care benefits with an annual payment nearly equal to that of the loss it posted in the last fiscal year, which ended on September 30. Were it exempted from pre-funding, the Postal Service operations would have come up looking financially sound—with help, of course, from the 4.3% exigent price increase it was awarded in December 2013. It recorded $1.4 billion in net operating income, its first non-loss in that column since 2008. First Class Mail revenue rose half a percentage point to $29.6 billion, and Standard Mail increased by 3% to $17.5 billion. First Class volume plummeted 8.4% to just under 4 billion pieces, but Standard Mail volume rose by 1% despite the higher costs presented to big mailers by exigency. Total Standard Mail letters rose by 539 million to 54 billion, contributing $10.8 billion in revenue to USPS's balance sheet, a 5.4% increase.
Grainger (NYSE: GWW), the leading broad line supplier of maintenance, repair and operating (MRO) products serving businesses and institutions, today announced it has entered into a definitive agreement to sell Fabory Group (Fabory) to Torqx Capital Partners, a Dutch private equity company.
Grainger will continue offering broad line MRO products to customers in Western Europe through Cromwell and Zoro.
“I want to thank the Fabory team for their innovative and customer-focused approach,” said DG Macpherson, Chairman and CEO of Grainger. “I’m confident the acquisition by Torqx will better align with Fabory’s growth objectives. At the same time, Grainger remains focused on providing value to our customers, executing our strategy and delivering profitable growth through our high-touch and endless assortment offerings.”
Harmen Geerts, Managing Partner of Torqx, commented: “Based on our extensive experience and strong track record with technical distribution businesses, we see a strong fit between Fabory and Torqx. We can help the company to strengthen its position as leading fastener specialist in its core markets and achieve its full potential.”
The transaction is not subject to any financing condition but is subject to the standard regulatory approvals. This deal is expected to close in the coming months.