Schaedler Yesco Expands to Ohio, Acquisition #24 Since July
The 2022 acquisition tsunami continues to roll with Friday’s announcement that Schaedler Yesco Distribution acquired YESCO Electrical Supply, headquartered in eastern Ohio.
This is the 24th electrical distribution acquisition since July of this year.
According to the press release:
“Schaedler Yesco Distribution, Inc. announces it has entered into an agreement to acquire YESCO Electrical Supply. Following a proper due diligence period, closing is anticipated in February 2023.
YESCO Electrical Supply Inc., https://www.yeselectric.com/our-story, has been offering expert electrical parts service since 1986. With 3 locations in Pennsylvania and 2 in Ohio, YESCO currently supports the needs of the industrial, contractor, commercial, and residential markets. After nearly 37 years in the industry, sale of the business is part of the current owner’s retirement strategy. YESCO is headquartered in Columbiana, Ohio.
Schaedler Yesco Distribution, established in 1924, is a 4th generation family- and employee-owned provider of complete connected solutions for the electrical industry. With 21 locations in Pennsylvania and 1 location in New York, the company offers services and products for lighting, data networking, automation, and industrial needs. The acquisition will streamline logistics and expand services via adjacent markets. They are headquartered in Harrisburg, PA.
Both companies have progressive business philosophies and a corporate culture that fosters innovation and strategic action. The mutually beneficial transaction fits the strategic goals of both companies well.
“We are very pleased to entrust our team members and customers to Schaedler Yesco,” explained YESCO’s owner and president Lee DeRose.
We have very similar cultures and couldn’t be happier to transition our business to a strong, growing company dedicated to their customers’ success and employee satisfaction. We are confident that this is the best move for all involved.”
“Our growth strategy in our western region has always included geographic expansion,” said company president Farrah Mittel. “YESCO’s culture and experienced team members will complement our current structure and strategic initiatives as we continue to support our customers with valuable products and services.”
Schaedler Yesco Distribution and YESCO Electrical Supply are committed to a smooth and seamless transition for staff and customers.”
Schaedler Yesco Acquisition Observations
- According to Electrical Wholesaling’s Top 150, YESCO was #129 and was, while they didn’t report revenue, they were slotted in around a $40 million company. With the number of employees reported, and the average revenue / employee that EW utilizes, projected sales could be around $60M (so, a $40-60M acquisition).
- Given that Schaedler Yesco was #43 on the EW list with revenues of $255M, this puts Schaedler Yesco over $300M based upon 2021 revenues
- Given Lee DeRose’s comment on culture, it is apparent that this can be an acquisition differentiator, especially given that Schaedler Yesco is a 4th generation distributor and consistently is recognized by the Best Places to Work in PA, which is a research-driven program from Best Companies Group, for its culture. (#17 for large companies this year!)
- Further, given that an exit (divestiture) was part of Lee’s retirement strategy, it’s evident that he looked at today’s market, tomorrow’s opportunities and probably said to himself “with all of the acquisition going on, the local market, and the investment needs, what is the best way to monetize the business and be the best place for my staff.” With 23 deals consummated so far in the past 6 months, and probably a few more to be announced shortly, many are thinking the same thing … and recognizing that joining with larger organizations could be better.
- YESCO has 5 locations, 3 are in western PA, 2 in Ohio.
- This expands Schaedler YESCO’s footprint and gives them their first foray into the Ohio market.
- Given Schaedler Yesco’s planned RDC in the Pittsburgh area, this further helps Schaedler Yesco leverage this new operational resource and gain share in the growing Pittsburgh market (there is much going on in southwestern PA.)
- While many think of Schaedler Yesco as a “Rockwell distributor”, and Rockwell is an important part of the business, it is concentrated in its Central region. This acquisition further diversifies the company’s business mix, which is needed given its limited Rockwell acquisition opportunities. (There is only so many industrial businesses in central PA!)
- The Schaedler Yesco / YESCO acquisition shows that there are strong independents that are in the business for the long-term and are investing (in themselves and through acquisitions) to grow the business. The incremental volume can also be leveraged through existing systems … operational platforms, technology investments (both are Eclipse users), support staff and more.
Congratulations to Lee for YESCO’s growth (I remember when I recruited them into IMARK many years ago) and to Greg Schaedler and Farrah Mittel on Schaedler Yesco’s first major expansion beyond Pennsylvania (they do have a branch in Johnson City, NY they acquired from Rexel).