Grainger's OrderZone.com and Works.com Agree To Combine Efforts

Small and midsized businesses will benefit from one of the most advanced online business purchasing services and e-marketplaces for indirect business products with the announcement that Grainger's OrderZone.com will be combined with Works.com of Austin, TX.

Under terms of the agreement, W.W. Grainger, Inc. (Chicago, IL) will contribute the OrderZone business and assets and invest an additional $21 million in Works.com and deliver the Works.com purchasing service and e-marketplace to 1.4 million small and midsize business customers through Grainger.com.

For its contributions, Grainger will take a 40% equity stake in Works.com, subject to certain voting and transfer restrictions. Grainger Group President Donald E. Bielinski will hold one of seven seats on the Works.com board of directors. Works.com co-founder and CEO, Bo Holland, will continue as CEO, setting the strategic direction and managing day-to-day operations of the company. Offices will be located in both Austin, Texas and Chicago, Illinois, and the new company will retain the name Works.com.

The transaction has been approved by the boards of directors of Grainger and Works.com. It is subject to approval from Works.com shareholders, which is expected within 30 days, as well as regulatory approvals and customary closing conditions. Grainger and Works.com anticipate completing the transaction by September 30, 2000.