Summary
- Leading North American distributor of industrial products
- Decentralised, customer-focused operating model
- Consistently strong growth and cash generation
Background
Caledonia’s Public Companies team identified Fastenal as a potential investment in 2017 and took advantage of market conditions during the Covid-19 pandemic to initiate a position in March 2020. Since then, the business has grown revenues and profits substantially while continuing to invest in the business. Fastenal’s decentralised structure, cost discipline and customer-centric culture have supported its long track record of profitable growth.
Investment thesis
Fastenal represents a well-run, long-term compounder with an exceptional balance sheet and clear alignment between management, employees and shareholders. Its focus on supply-chain efficiency, disciplined capital allocation and incremental market share gains has enabled consistent value creation. Fastenal is a core holding within both the Capital and Income portfolios, reflecting Caledonia’s conviction in its enduring growth and cash-generation potential.
As at 31 March 2025.