Schaedler Yesco & FSG Announce Acquisitions

Q4 started with a bang with two more electrical distribution acquisitions being announced.

Schaedler Yesco announced that they have acquired Clarion Electric, a two branch Eaton distributor in Northwest Pennsylvania. Schaedler Yesco now has 29 locations.

And last week Facility Solutions Group announced that hey acquired New York-based Lighting Management Inc (LMI).

While both are relatively small deals, industry consolidation continues even with rising interest rates. Larger companies are able to absorb smaller companies, most likely based upon cashflow, coupled with synergistic benefits and incremental rebate income.

According to company press releases:

Schaedler YESCO and Clarion Electric Supply Enter Agreement for Acquisition

“Schaedler Yesco Distribution, Inc. announces it has entered into an agreement to acquire Clarion Electric Supply. Following a proper due diligence period, closing is anticipated in December 2023.

Clarion Electric Supply Company has been offering expert electrical parts service since 1971. With 2 locations in northwest Pennsylvania, Clarion Electric currently supports the needs of the contractor market. After nearly 53 years in the industry, sale of the business is due to the current ownership’s desire to join a respected, independent distributor with an intentional growth strategy and strong core values. Clarion Electric is headquartered in Clarion, PA with a second location in Grove City, PA.

Schaedler Yesco Distribution, established in 1924, is a 4th generation family- and employee-owned provider of complete connected solutions for the electrical industry. With 24 locations in Pennsylvania, 2 in Ohio, and 1 in New York, the company offers services and products for lighting, power distribution, data networking, automation, and industrial needs. The acquisition will further the company’s plans to streamline logistics and expand services via adjacent markets. They are headquartered in Harrisburg, PA.

Both companies have growth-minded business philosophies and a culture that fosters innovation and strategic action. The mutually beneficial transaction fits the strategic goals of both companies well.

“We are excited to join the Schaedler Yesco team,” shared Brian Stewart, one of the company’s three owners. “As a family-owned business, it’s important that we join forces with another company that understands and values the importance of independence. We know this step will only increase the service and support our customers receive.” Each of the owners will be transitioning to Schaedler Yesco.

“We have been very intentional about the growth strategy in our western region,” said company president Farrah Mittel. “Folding Clarion’s two locations into our footprint allows us to serve Northwest PA more efficiently and effectively.”

This news follows other growth initiatives announced in 2023. In February, Schaedler Yesco acquired YESCO Electrical Supply’s five locations. In August, the company announced an expanded and dedicated structure to serve its western market. And in late October, it will open a new 90,000-square-foot RDC in Lower Burrell, PA. Schaedler Yesco was recently recognized as a Fastest Growing Company in Pennsylvania and a Best Place to Work in Pennsylvania.

FSG Acquires Lighting Management, Inc. (LMI) to Expand Lighting Service

Facility Solutions Group, Inc. (FSG) announced today the acquisition of Lighting Management, Inc. (LMI), located in Valley Cottage, New York. With offices in North Carolina, South Carolina, and Florida, this acquisition allows FSG to further expand its lighting service offerings nationally.

“LMI brings an extensive range of expertise in lighting, design, value-engineering and controls to FSG. The long-tenured staff of knowledgeable lighting professionals will be a great addition to FSG. This strategic acquisition supports the continued expansion of our lighting business nationally and synergizes well with our vision,” says Leon Mowadia, Chief Operating Officer of Distribution for FSG.

Facility Solutions Group announces acquisition of Lighting Management, Inc. to expand its lighting service offerings.

“When Lighting Management, Inc. was started our goal was to be different. FSG is a remarkable company and has given the LMI family the chance to be part of this national institution. Our merger represents a strategic convergence that will help raise our game on so many levels,” said John Sapanaro, President of LMI.

Luke Graham, the newly appointed Vice President of this branch noted “This strategic move marks a significant milestone in our company’s continued growth and reaffirms our commitment to providing innovative lighting solutions to our valued customers. By combining our strengths and expertise, we look forward to delivering even more cutting edge products and services in the future. I’m honored and excited to lead this new division. This opportunity is a testament to the hard work, dedication, and support of my colleagues and mentors. I am eager to take on this role and lead our team to new heights.”

These two acquisitions bring the number of distributor deals done this year to twenty.