Fields Electrical Sales Joins Forward Solutions

Another week, another acquisition in the electrical distribution industry. Last week, Fields Electrical Sales, an independent manufacturer representative covering Ohio, Michigan, western Pennsylvania, and West Virginia was sold to Forward Solutions, whom you may recall acquired ElectroRep and R/B Sales last summer.

Fields’ key lines include Southwire, Hammond Power Solutions, Milbank, some Atkore lines, HellermannTyton, Keystone, Littelfuse, Western Tube, some Legrand divisions along with a number of other lines.

Fields is considered one of the leading agencies in its markets and supports the territory with approximately forty individuals.

Powering Up: Fields Electrical Sales Joins Forward Solutions’ Cutting-Edge Electrical Team

According to the press release:

Forward Solutions, a top provider of outsourced sales and marketing, is thrilled to announce the successful merger of Fields Electrical Sales with the Forward Solutions electrical division.

Fields Electrical Sales has been an electrical channel leader, serving customers in Ohio, West Virginia, Michigan, Southwest Virginia and Western Pennsylvania since 1934. Fields represents select premier electrical product manufacturers to distributors, contractors and engineers focusing on strategic vertical markets. Their competence includes solutions for data centers, electric vehicles, factory automation and solar projects.

President / CEO of Forward Solutions, Joe Orednick, explained, “Field Electrical Sales has long been known for its commitment to quality and deep understanding of the market. By joining forces, we’ll be able to offer unparalleled support to manufacturing and distribution partners across a broader geographic spectrum. This enhanced reach will continue to address the market trend of consolidation, centralized decision-making, and servicing projects that scale multiple regions. This is a win-win for everyone involved, especially our customers, who will benefit from a truly best-in-class experience.”

Skip Watson, CEO/Owner of Field Electrical Sales, added, “We’re excited to be welcomed by the talented team at Forward Solutions. Their expertise perfectly complements our existing offerings, and together, we’ll be a force to be reckoned with in the industry.”

Paul Staten, President, continued, “This strategic move allows us to provide our customers with even greater value and a wider range of solutions, all backed by the combined strength and reputation of both companies.”

Clients of both Field Electrical Sales and Forward Solutions can expect a seamless transition as the two entities integrate their strengths. Clients, partners, and stakeholders can anticipate continued dedication to excellence backed by the unmatched expertise that Field Electrical Sales brings. With a shared vision of excellence, this merger will create new avenues for growth and collaboration within the electrical division.”

Insights from Skip Watson

According to Skip Watson, president of Fields Electrical Sales, his intent was to transition the company to key management, however, upon becoming more familiar with Forward Solutions through a couple of orientation meetings, he and Paul Staten, President of Fields Electrical Sales, came to the conclusion that partnering with Forward Solutions made the most sense.

To Skip, the welfare of his employees and suppliers were primary considerations. Cultures aligned and he was impressed with the resources that Forward Solutions could bring to Fields, resources that reduced operational costs, could add value to the business, enabled the team to focus on “selling” and ensured sustainability of the business.

In our discussion Skip specifically mentioned areas such as technology and marketing investments that Forward Solutions brought to the table while being able to “outsource” areas such as HR management and accounting / finance (and I’m sure other things such as facility management, insurance, etc). Another benefit was the ability to network with other agencies, not only electrical reps within Forward Solutions but to learn from agencies in other industries within Forward Solutions.

Bill Devereaux, President of R/B Sales and Vice President of Forward Solutions’ Electrical Division commented “One of the side benefits of joining Forward Solutions I didn’t understand enough going into this was the quality of support staff we are blessed to have. Being part of a 500 plus person organization allows us skilled / specialized teammates I could never have afforded or kept busy in their field of expertise.”

Further, key management could be invested in the business and, while the merger facilitates a future exit process for Skip, he could still be invested into the business and focus his energies on helping grow the business.

Skip shared that he had spoken to his manufacturers, and they were overwhelming supportive of the new ownership with no concerns about Forward Solutions having private equity investment as the PE money is, essentially, a bank … a quiet funding resource. The feedback was that this supported a long-term vision.

Additionally, Fields’ staff see the opportunity for additional investment into the business as well as opportunities for themselves given that they are now part of a larger company.

Other comments from Skip included:

• “We saw the engine (resources) and asked ourselves, what are we driving. FES was driving a Chevy; Forward Solutions is driving a Ferrari.”
• “If we don’t join, what happens if a competitor does?”

Click here for more about Forward Solutions’ Electrical Division

Thoughts on Fields Electrical Sales and Forward Solutions

• First, congratulations to Skip and the Fields team on finding a succession plan that works for them.
• While last year much was made of the fact that Forward Solutions is owned by a private equity firm, it’s important to note that not all PE firms are “buy and flip”. Many are “buy and hold.” Forward Solutions, and its investor, come from the manufacturer representative community.
• Fields had become a “good size” agency, revenue-wise. Given that many agencies have grown significantly, and hence the value of the agency increased, could the cost of transferring / acquiring an agency from its owners become too high and hence burden an agency (the next generation) with significant debt? Is a larger entity needed to acquire larger agencies? Are “new” models needed?
• Forward Solutions represents another solution (or alternative) succession planning strategy for manufacturer representatives where ownership is seeking to transition the business. While historically an agency principal sought to sell to a family member, nowadays other scenarios include selling to another agency, selling to key management, undertaking an ESOP, or selling to someone outside the industry. Now there is another acquirer in the marketplace. As Skip said, “this is a new option for reps.”
  • And there are strong rumors of another large, quasi-national agency having PE money involved.
  • It’s unknown what Forward Solutions operating model for the electrical industry will be. Given its growth within the past 12 months, I would presume we could put them into the category of “quasi-national” within 2 years. “Quasi-national referring to many states a la FRM / Bell & McCoy, JD Martin and Ewing Foley. Whether a supplier selects to have them as a national agent, like they are in some other industries, remains to be seen. Whether they brand under one name or operate under local names with shared “back-office” services, is unknown. Bottom-line is that electrical products will be represented and promoted in those markets.
• Recently I met with a utility rep. The firm had transitioned about 10 years ago to the second generation. The business has grown nicely. Given investments being made into the grid, the utility market is growing and will continue to grow. He shared with me he has had four private-equity firms approach him in the past two years.
• Given how many businesses in the United States are now owned by a private equity firm, in reality, “customers” (end-users, distributors, manufacturers) no longer care. Their sole concern is “can I be serviced the way I want to be serviced” and employees are focused on opportunities for them and servicing their customers.
• NEMRA‘s 2020 Rep of the Future Report, and its resulting 5 Pillars, laid a roadmap for agencies and where investments need to be made. (If you are a NEMRA rep or a NEMRA manufacturer and have not read the report, or at least the beginning of it, contact NEMRA for a copy.) This, coupled with the aging of agency ownership in many instances, is leading to agency principals becoming more principled about considering the future of their agency. As Skip commented, thinking about the people in the agency first is key … it’s about business perpetuity.

So, another week, another acquisition. Who’s next?