Grainger names successor to longtime CEO
James T. Ryan, who becomes chief executive officer of W.W. Grainger Inc. in June, said Monday he will continue the company's plan to expand here and overseas.
The Lake Forest-based supplier of maintenance products to manufacturers said it intends to open a branch in Panama later this year and a sales office in India in the future.
In the past 1½ years, it has opened some suburban branches, including in Mundelein, and one overseas in China.
Its five-year plan is now in its fourth year, and Grainger likely will continue hiring workers to fill those new or expanded offices, Ryan said during an interview.
"We like what we see so far and will continue to go after our growth plan aggressively," Ryan said. "This is a good opportunity for us to grow despite a slow economy."
Grainger announced Monday Ryan, 49, will replace Richard L. Keyser, 65, as CEO on June 1. Ryan will be the fourth CEO in the company's 80-year history.
Ryan was named chief operating officer and appointed to the board of directors in February 2007. He became president in 2006.
Keyser, 65, had served as CEO for about a dozen years and will remain as chairman.
"We have worked closely together for the past 20 years as he has moved within the company, and during that time, Jim has developed a broad understanding of what makes Grainger so successful," Keyser said in a statement.
Grainger had sales of $6.4 billion in 2007 and has been a supplier of maintenance products serving businesses and institutions in Canada, China, Mexico and the U.S. It has 600 branches, 18 distribution centers and about 18,000 workers worldwide.
Wall Street was lukewarm to the news Monday as shares closed at $76.39, down 7 cents.
Jeff Germanotta, an analyst with William Blair & Co. in Chicago, has been impressed with Grainger's supply chain improvements and believes they should produce long-term benefits.
Also Ryan's appointment to lead that growth "has been long telegraphed," said Germanotta.
"Jim has demonstrated his ability through multiple projects, including the investments in the branches and increasing the product offerings," Germanotta said. "These will all help improve sales."