UPDATE 3-MSC Industrial to enter Canada with $550 mln Barnes unit buy
* To buy Barnes's North American distribution business
* Expects deal to generate $15 mln-$20 mln in cost synergies by 2015
* Says deal to reduce second-quarter earnings by $0.02 per share
* Barnes shares rise 14 percent, MSC shares up 4 percent
By Sagarika Jaisinghani
Feb 22 (Reuters) - Industrial products distributor MSC Industrial Direct Co Inc said it would buy the North American distribution business of Barnes Group Inc for $550 million to gain access to the metalworking and maintenance, repair and operations (MRO) market in Canada.
Barnes shares rose as much as 14 percent to $27.85 on the New York Stock Exchange in early trading. MSC's shares rose 4 percent to $86.50.
The acquisition would nearly double MSC's sales force and boost revenue to about $4 billion by 2016, Chief Executive Erik Gershwind said in a statement.
MSC had total revenue of $2.36 billion in the year ended Sept. 1. Continued...