Green Mountain Moves Into Massachusetts

Green Mountain Electric Supply continues it’s dual growth strategy of organic and via acquisition.

The company has now moved into Massachusetts with its eighth acquisition in less than three years. Earlier this week the company announced the acquisition of Atlantic Electrical Distributor Services, a single location distributor in Shrewsbury, MA, which is about 40 miles west of Boston.

Green Mountains other acquisitions beginning in 2021 have included:

• Dunn Electric
• Jamestown Electric
• Scott Electric Supply (2 locations)
• Davis Electrical Supply
• Generation Electric Supply
• Falcone Electric
• Fingerlakes Electric Supply

Essentially it appears that Green Mountain has “rolled-up” small 1 and 2 location distributors in western / upstate New York that, most likely, had generational / succession issues and/or so the challenge in competing in small markets versus a larger company.

For those familiar with western / upstate New York, these moves, coupled with a number of New England manufacturer representatives expanding into this market is changing relationships and strategies in the area.

• Now, with Green Mountain acquiring Atlantic Electrical it begs the question of “will the deploy the same playbook?”
• Will the company actively pursue other 1-2 branch distributors who find competing in the Massachusetts market against national chains and large regionals challenging and/or companies with no succession plan?
• With nationals and large regionals having a density model in this market, their need for “fill-in” acquisitions is limited, hence creating an opportunity for Green Mountain.
• Could there be a preference for distributors of selected switchgear lines? Green Mountain’s website highlights that they have access to Eaton, Siemens, and Square D, however, this most likely differs by market, so Green Mountain will have a preference.
• Will they have interest in acquiring / competing in the metropolis of Boston or will they prefer to pursue opportunities from Shrewsbury west, which are suburban and rural and culturally a little more like other parts of Green Mountain’s marketplace.

The Massachusetts distribution landscape

• The national chains that are in the Massachusetts market include Sonepar (NorthEast Electric), Rexel, Graybar, Wesco, CED (1 location in Tewksbury) , and City Electric.
• Regional distributors (multi-state) include Granite City Electric.
• Strong primarily state-focused distributors include Electric Supply Center, Independent Electric, Standard Electric, Electrical Wholesalers, New England and HZ Electric Supply (both part of USESI).

And then there are other smaller independents or branches of larger companies that have nominal market share.

Congratulations on Green Mountain acquiring Atlantic Electrical. This is the electrical distribution industry’s 21^st of the year.

Will we exceed last year’s acquisition total of 37? Perhaps Green Mountain will add to the list as last year they had a number in Q4?