Walters Wholesale Acquires Desert Electric

Walters Wholesale, a leading Southern California distributor, expanded its reach “further east” and acquired Pam Desert-based Desert Electric as well as Pomona Wholesale Electric.

According to a press release,

“Walters Wholesale Electric, a premier distributor of electrical supplies and a division of U.S. Electrical Services, is thrilled to announce the acquisition of Desert Electric Supply and Pomona Wholesale Electric. This expansion strengthens Walters’ presence across Southern California, bringing additional locations and resources to serve a wider range of customers more efficiently.

Desert Electric Supply, established in 1972 with three locations across Coachella Valley, has a long-standing reputation as a trusted electrical supply provider. Led by former owner Eric Stevens, Desert has served contractors and industrial businesses for over five decades. Pomona Wholesale Electric, with a strategic single location in Pomona, further complements Walters’ regional reach.

As part of this acquisition, Desert Electric Supply will maintain its recognized brand while transitioning to Walters model, leveraging centralized logistics and inventory to ensure superior service to customers. The integration with Walters’ extensive distribution network will also streamline access to products and enhance service for all locations.

Steve Valcourt, President of Walters Wholesale Electric, shared his excitement for the future: “Bringing Desert Electric Supply and Pomona Wholesale Electric into the Walters family reflects our dedication to growth and quality service. Both companies share Walters’ commitment to providing exceptional products and support, and we’re thrilled to welcome them as part of our team.”

The acquisition allows Walters Wholesale Electric, which operates with over 33 locations and 500 employees, to expand its offerings and ensure fast, reliable service across the Western U.S. Customers of Desert and Pomona will now benefit from Walters’ robust inventory, streamlined logistics, and the expertise of a larger distribution network.”

Take Aways

From reviewing the 2020 and 2022 Electrical Wholesaling Top 150 reports, it’s estimated that Desert Electric is about a $35-40 million business.

• In 2020, so 2019, they were ranked #46 with revenues of $38,194,080 with 59 employees. Given that Desert Electric is in Palm Desert (Palm Springs area), presumably the company is resi-oriented / light commercia and may have had a drop from COVID.
• In 2022 (so, 2021 revenues), EW ranked them #137 with 51 employees. This ranking would have put them around $27-35M at that time. Given market gyrations (2022 and 2023 having growth, this year probably “challenged” (according to agents and distributors the California market is suffering more than most markets), my sense is $30-40M.

The acquisition is a good fit for Walters as it strengthens its footprint and is able to generate synergies via its CDC in SoCal.

This is US Electrical Services second acquisition this year as the company’s Electrical Wholesalers, Connecticut business acquired ASKO earlier in the year.

This makes 5 deals in the last month or so … PC Clark, Grove, CIM Robotics, Desert and Pomona. While not “names” outside their local markets, is this the next trend? And we hear another is to be announced soon.