Rockwell Distributors Thank Sonepar

For a number of years Rockwell’s electrical distributors have heard how Rockwell wanted to reduce the numbers of distributors they interacted with and reportedly this was to occur through natural acquisitions.  It has been hinted during this time that Rockwell has the ability to influence potential acquisitions.  While we have no direct knowledge of this, the industry engaged in conversation about whom could purchase whom.

Years ago some of the national chains acquired Rockwell distributors (Rexel, WESCO, Sonepar, CED) but there hasn’t been much in recent memory.  It’s also been said that Rockwell favors “independent” distributors – they didn’t want have too close of a relationship with the national chains.

This puts a crimp in the “more with less” strategy. Rockwell distributors were relegated to selling to distributors with neighboring APRs (area of primary responsibility) or large independents (Kendall buying Roden, potentially McNaughton McKay or Border States, etc).

A few years ago Sonepar purchased Stuart Irby, giving them their second Rockwell distributor (Standard Electric in Boston had the Boston Rockwell APR).

Well, Sonepar is now potentially giving Rockwell distributors another potential acquirer – they have purchased OneSource Distributors in California.

OneSource, for those who don’t know, is a large, quality distributor with a good management team and strong operational platform.  Their president, Mike Smith, has a strong Eclipse background and can also be a great resource to other Sonepar divisions in supporting Eclipse needs.

Presumably Rockwell was informed about this well before discussions reached the numbers phase and approved of the relationship. Question becomes – would they be amenable to Sonepar acquiring other Rockwell distributors … or is there a Sonepar saturation point? Would Rockwell be open to other national chains acquiring Rockwell distributors (or only if they operate them as separate companies?)

Either way, the value of a Rockwell distributor has now increased.