Divesting for Growth
Goodbye Packaged Fasteners
This week Hodell-Natco made a bold, strategic move when it divested of its small packaged fasteners business unit. This move, unlike the majority of divestitures, was made proactively with a long-term growth strategy in mind. Sometimes just the word “divestiture” can elicit negative thoughts of poorly performing business units or mismanagement. This is certainly not the case for Hodell-Natco! Our packaged fastener business unit has provided a strong, consistent revenue stream for many years. It was time for us, however, to shift gears and make a decision to invest in the long-term health of our company.
Our sale partner, Lindstrom Fastener Group, is a leading master distributor to the fastener distribution industry. The addition of Hodell-Natco’s packaged fasteners business is a natural addition to Lindstrom’s expansive product line. In the upcoming days, our sales team will continue to work with our packaged fastener customers to help them successfully transition their business to Lindstrom.
While the “nuts and bolts” (pardon the pun) of this divestiture are working themselves out, the leadership at Hodell-Natco has already set its sights on the future. To start, this divestiture allows us to focus our energies and better service our core markets of: Manufacturing, Fabrication, Piping, and Heavy Construction. Secondly, monies earned from the sale are slated to be reinvested for further growth. The best opportunities don’t just fall into our laps by chance… they are sought out and seized.