Shaped Up, Shipped Out

When cutting tools manufacturer Kennametal Inc. sold off its J&L Industrial Supply catalog division to maintenance, repair and operations (MRO) supplies cataloger MSC Industrial Direct Co. in a deal that closed June 8 for a cool $349.5 million, the seller said it would recognize an estimated $215 million to $225 million pre-tax gain in its fourth fiscal quarter ended June 30. These are striking figures, considering that as recently as five years ago, most people — both within Kennametal and on the outside — would've laughed at the idea that J&L could fetch that much, never mind find a buyer.