Although distribution is not typically a high-margin/high-return sort of business, industrial supply is a different story, as MSC Industrial (NYSE:MSM), Fastenal (Nasdaq:FAST), and Grainger (NYSE:GWW) have all managed to generate solid margins, returns on capital, and free cash flow. With the acquisition of Barnes' (NYSE:B) North American distribution business (BDNA) now complete, MSC Industrial has an interesting set of options in front of it. While management will find itself occupied initially with fixing BDNA's flabby margins, the opportunities for product, end market, and geographical expansion make this a name worth knowing and owning today.
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Investopedia: Post-Barnes, MSC Industrial Has Multiple Growth Opportunities
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