Mike Miazga 2017-01-05 01:19:54
HAJOCA ACQUIRES CERTAIN EASTERN PENN SUPPLY ASSETS Eastern Pennsylvania Supply President George Conyngham Jr. Announced in a letter to customers, vendors and business partners that the Wilkes-Barre, Pa.- based distributor, a division of W.H. Conyngham & Co., has entered into a definitive agreement of sale to Ardmore, Pa.- based Hajoca Corp., whereby Hajoca will acquire certain assets of EPSCO. In the letter, Conyngham said he expected the transaction to close in late January. Terms of the transaction, by mutual legal agreement, will not be disclosed, he added. EPSCO was founded in 1889 and services generally the northeast quarter of Pennsylvania with 11 branches in Allentown, Athens, Berwick, Montandon, Scranton, Stroudsburg, Tunkhannock, White Mills and Wilkes-Barre (Coal Street). Hajoca, founded in 1858, has hundreds of locations across the U.S., and checked in at No. 7 on the 2016 Supply House Times Premier 150 list of top PHCP-PVF distributors. “EPSCO has cultivated a strong relationship with Hajoca over the last several years and we see this as an excellent strategic and geographical fit for both parties,” Conyngham wrote in the letter. “We expect to continue and most certainly improve the same high level of service to our most valued asset — you, our customers — and want to thank all of you for your friendship and support,” he continued in the letter. Conyngham added that post-transaction, Ren Schuler, vice president/operations at EPSCO, will continue as regional manager of Hajoca EPSCO region and Joseph Kerestes, vice president finance, will continue as operations manager. George Conyngham and Donald Conyngham will continue to be available for consultation as needed, but have elected to distance themselves from day-to-day operations, Conyngham explained in the letter. “We want to assure you this will be business ‘better than usual,’” George Conyngham said. MID-CITY SUPPLY HOSTS ANNUAL HOLIDAY HOG ROASTS Elkhart, Ind.-based Mid-City Supply hosted its annual holiday hog roasts in December that benefit both Toys for Tots and the Salvation Army. This year, Mid-City Supply served lunch to about 1,000 people (customers, reps, associates and friends) during the events held at the company’s branches in Michigan City, Warsaw, Plymouth, South Bend and Elkhart, Ind., and Galesburg and Jenison, Mich. Mid-City Supply President Jeff New said this year’s events resulted in hundreds of toys being collected for Toys for Tots, 12 laundry baskets full of personal care items earmarked for the Salvation Army to distribute to local families in need, as well as monetary donations being made to both organizations. “It’s amazing how many items we collect,” New told Supply House Times at the company’s event at its Elkhart, Ind., headquarters. “It’s a great week.” The hog roasts have been held at Mid-City locations since 1993, starting at the South Bend location. “We decided to have a hog roast in December,” New said with a laugh. “Typically you have a hog roast in the middle of summer. It takes a real effort to have one in the middle of winter.” The events have morphed into their current-day form where customers have the opportunity to network with Mid-City employees and reps from Mid-City suppliers. New said the Elkhart event had 30 manufacturers representatives in attendance. “It’s our way of showing our appreciation for our customers,” he said. “It’s also a way for our customers to learn. They get to talk to our reps and learn about new products and ask about existing ones, Plus, they get to do it for a good cause. Some of our reps are with us every day at every branch. We get great support from our reps. This isn’t something where we’re offering special pricing. It’s a great exchange of info. The reps win, the customers win and Toys for Tots and the Salvation Army win.” RT Vogt, chairman and CEO of Indianapolis-based Aspinall Associates (which is celebrating its 78th anniversary this year with the tagline “Still Great After 78”) was one of the manufacturers reps in attendance at the Elkhart event that drew close to 200 people. “In a very short period of time I can make more calls here than I would be able to make in two week’s time,” he explained. “We’re seeing their better customers here. It’s a value-added time to be able to talk to these guys who are out there in the field. We see such a good value that we try and hit as many of these events as we can.” —Mike Miazga FERGUSON ACQUIRES TEXAS COMPANY Ferguson recently acquired Matera Paper Co. Matera is headquartered in San Antonio, Texas, and distributes commercial and industrial cleaning chemicals, supplies and equipment to facilities throughout the state. “This acquisition further demonstrates our commitment to the commercial MRO industry,” Ferguson CEO Frank Roach said. “Matera has been in business for nearly 60 years and has a history of strong organic growth. They will be a great asset to Ferguson and our JanSan business in Texas.” Founded in 1957, Matera customers include hospitals, schools, universities, industrial facilities, contractors and private businesses. The company has about 250 associates and five locations in the Texas cities of San Antonio, Houston, Dallas, Austin and Corpus Christi. Ferguson noted it has a strong presence in the commercial MRO industry through its Ferguson Facilities Supply business. It also has dedicated commercial MRO shipping centers that can deliver many products next day to customers throughout the U.S. Ferguson has acquired several MRO companies, including HP Products in 2014. HP Products acquired Ship-Pac, a janitorial and packaging firm, in 2014 and PCS Industries, a JanSan company outside Chicago, earlier this year. SHURJOINT INDUSTRIES JOINS APOLLO FLOW CONTROLS FAMILY Apollo Valves’ parent company Aalberts Industries has acquired Shurjoint Industries effective Nov. 29. Leading the acquisition is CEO Glenn Mosack and Senior Vice President Global Sales and Marketing Brian Ragone of the Apollo Flow Controls division of the company. The Shurjoint grooved connection technology will play an integral part in completing the total end-to-end connection capabilities of Apollo Flow Controls, the company noted. This integration allows Apollo to offer the most extensive and complete portfolio of connection and flow-control devices of any other brand in North America, the company added. Additionally, Apollo will be able to service a global market and expand its manufacturing capabilities into other geographies around the world. Apollo Valves recently was named the recipient of the Supply House Times 2016 PVF Ring of Honor award. To access that story, visit www.supplyht.com. METROPOLITAN INDUSTRIES ACQUIRES EMECOLE Romeoville, Ill.-based Metropolitan Industries, a water-management technology solutions company, recently acquired Emecole. Metropolitan Industries noted the sale shows a positive growth for the future of both companies and said acquisition transitions will follow in the months to come. With the acquisition, Metropolitan has unveiled a new logo and a company name — Emercole Metro. Founded and based in Romeoville, Emecole manufactures and distributes concrete repair chemicals and waterproofing solutions. For nearly 30 years, Emecole has been the industry leader in concrete repair chemicals and waterproofing solutions, Metropolitan noted. Emecole was founded by current President Louis Cole. “Louis always carried the drive to reduce the labor and costs associated with leaking cracks from basement foundations,” Metropolitan stated. “In his career, he has been awarded 10 patents from creating his state-of-the-art low-pressure injection system that has become the leading industry standard for approaching concrete crack repairs.” Metropolitan said the purchase allows it to cross-promote between the two businesses by allowing each company’s products to be sold in the territories covered by the other company. Emecole’s operations will remain in its existing facility presently, Metropolitan stated. “We’re excited for the new team to strengthen the family business as we look forward to our commitment to continued growth and for Metropolitan to continue to be a market-leader in all our areas of business both today and tomorrow,” Metropolitan President John Kochan Jr. Said. FALCON STAINLESS MOVES INTO NEW HEADQUARTERS Falcon Stainless recently moved into a new warehouse and headquarters facility in Temecula, Calif. The company noted the move was the result of “outstanding sales over the 2015-2016 fiscal year.” The headquarters features double the warehouse space and triple the office space, which was needed to accommodate growth and future expansion. Flex connector manufacturer Falcon Stainless provides plumbing distributors, contractors and the water-treatment industry high-flow flexible CSS connections for water and gas that are manufactured in the Falcon facility. ASA DISTRIBUTORS REPORT DOUBLEDIGIT MEDIAN SALES INCREASE American Supply Association member wholesaler-distributors reported a median sales increase of 10.0% for the month ending Nov. 30, 2016, compared to the same month last year. Calendar year-to-date, all respondents reported median sales growth of 4.2%, and the median increase for the trailing 12 months also is 4.2%. Inventory rose 2.1% compared to a year ago, and the median three-months average days sales outstanding increased to 44.0 days. Nearly two-thirds (62.7%) of respondents reported an increase in gross margin percentages for November 2016 vs. 2015, and company YTD profit before taxes increased for 4% of the total sample. For the first time in many months, less than one-half (45.8%) of respondents reported having more full-time equivalent employees compared to a year ago. Industrial pipe-valve-fitting distributors reported a median sales increase of 8.5% for the month compared to the same last year. Calendar year-to-date, PVF respondents reported a median sales increase of 0.8%, but the median decrease for the trailing 12 months is -0.9%. Inventories grew 3.0% compared to a year ago, and the median three-months average DSOs increased from 42.2 days in October to 43.4 in November. PVF respondents reporting an increase in company YTD profit before taxes increased from 46. 7% in October to 50.0% in November. TWO KOHLER SIGNATURE STORES HOLD GRAND OPENINGS Two more Kohler Signature Stores recently held grand openings in New Jersey and Georgia. The Kohler Signature Store by General Plumbing Supply opened Jan 14. The store, owned and operated by General, is located in Paramus, N.J., and marks the 14th Signature Store to open across the country. It will serve the needs of both trade professionals and consumers. Paramus, recognized as one of the largest shopping destinations in the country, is located less than 20 miles from New York City. “We are excited to be the first Kohler Signature Store in New Jersey and in the Tri-State area,” Store Manager Roberta Morton said. “We want to inspire our customers to dream about how their next kitchen or bath project could develop. Both General Plumbing Supply and Kohler are more than 100 years old and both are family-owned and –operated companies. We are excited to form a partnership to bring the exceptional products of Kohler and the service of General Plumbing Supply in a one-stop shop experience.” In November, the Kohler Signature Store by PDI opened to customers and trade professionals. The store is owned by Plumbing Distributors Inc., and is located at The Exchange in the Buckhead district of Atlanta. This is the first Kohler Signature Store in the Southeast. The PDI Buckhead location is about 4,000 sq. ft, and is managed by Tricia Coyle. EXPRESS PIPE & SUPPLY PRESIDENT BOIKO RETIRES Anaheim, Calif.-based Express Pipe & Supply co-founder and President Greg Boiko has retired. Boiko helped grow the Express business to more than $100 million in just over 20 years, MORSCO CEO Chip Hornsby told company associates in a note that was provided to Supply House Times. Boiko became part of MORSCO’s senior management team in 2012 and continued to grow and expand Express through same-store sales, new locations and the acquisition of Teal Pipe, Hornsby explained. Boiko, Hornsby explained, is retiring early due to health issues. “Greg’s contribution to all us at MORSCO already is greatly missed,” Hornsby wrote in the company announcement. “However, he will always continue to be part of our team. Though Greg will not be involved with us on a daily basis, many of us will continue to seek his advice and guidance as I recently did while in Southern California. During that visit, Greg expressed his gratitude for his customers, associates, vendors and reps. Greg is one of the greatest men I have been associated with throughout my many decades in the industry.” HARDI DISTRIBUTORS REPORT 7.3% REVENUE INCREASE IN SEPTEMBER HARDI’s monthly TRENDS report shows average sales for member distributors increased by 7.3% in September. The average annualized growth for the 12 months through September is 8.1% and the annual growth rate has generally remained within the range of 6 to 7% during the past two years. This is the first breach of 8% since 2011. “September had similar year-to-year operating conditions throughout most of the country,” HARDI Market Research & Benchmarking Analyst Brian Loftus said. “The month is memorable for the annual sales growth rate reaching 8% territory. This is the best annual growth rate since the calculation was inflated by easy comparisons from the last remnants of the Great Recession.” HARDI Senior Economist Connor Lokar added: “U.S. real GDP and U.S. industrial production are on the back side of the business cycle. However, leading indicators are pointing toward a stronger macroeconomy in the U.S. and abroad in 2017. The U.S. consumer is in good shape thanks to a strong labor market, low interest rates, low inflation and rising home values.” The days sales outstanding, a measure of how quickly customers pay their bills, increased by one day to 43.3. “The current DSO level is comparable to last year at this time,” Loftus said. “Some slowing of DSO is consistent with the normal seasonality.”
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