Longtime Fastenal Co. Chief Executive Will Oberton will resign at the end of the year, the company announced Friday.
Oberton, who has been with the Winona, Minn.-based supplier of fasteners, construction and industrial products since about 1980 and CEO and president since 2002, will stay on as chairman.
Oberton, 56, informed the board of his decision earlier this week. He will be succeeded as CEO by Leland J. Hein, 53, Fastenal's president.
Hein joined Fastenal in 1985 and served in various management posts, including executive vice president of sales. He was named company president in 2012.
Fastenal generates about $3.6 billion in annual sales and operates 2,647 stores, mostly in North America. Under Oberton's leadership, revenue grew from $905 million in 2002 to $3.3 billion last year. Earnings rose from $75 million in 2002 to $448 million last year.
In addition to operating retail stores, Fastenal has installed industrial supply vending machines inside many of its customers' factories. That model, which Oberton championed, has proved a success as it speeds up delivery of products to customers and has better profit margins than the traditional store. During the last quarter, Fastenal closed a few of its underperforming retail locations while bolstering its vending machine presence.
The firm also beefed up its employee ranks in an effort to boost customer service. It added 1,896 workers in the last year and now has 18,425 employees.
It has additional locations in Asia, Europe, Central and South America, and Africa. The company operates 14 distribution centers, 11 of which are in the United States.
