CapitalWorks, Keane (Amex: KEA) and Parker Hannifin (NYSE: PH) today announced the formation of a new company, iPower Logistics LLC, which has acquired the iPower Distribution Group Inc. from Parker Hannifin Corporation. Parker retains a 20-percent equity stake in the new company.
The supply network, which currently serves 165 large industrial customers and 175 distributors, has been operated by iPower Distribution Group Inc., as a wholly owned subsidiary of Parker Hannifin, and was originally launched as a service to Parker’s distributors and other complementary industrial distributors.
Today, the network covers a broad range of industrial supplies, including electrical, safety and industrial products, hydraulics and pneumatics, bearings and power transmission parts, pipes, valves and fittings, fasteners and other items from brand-name manufacturers. The integrated supply platform has allowed customers to reduce their procurement costs by 20 to 40 percent, while reducing inventory by up to 70 percent.
The new iPower Logistics business combination will offer new products and services to the existing iPower Distribution distributors and develop new web- enabled integrated supply and vendor-managed inventory software and services. Keane will provide software development and other technical services.