People, Products, and Companies … Changes in the Marketplace

Q2 started with some personnel announcements and an acquisition announcement so we wrapped up Q1 with an overview of People, Products, and Companies.

People

McNaughton-McKay

In a move that surprised many, McNaughton-McKay announced that Steve Guidry is now the new EVP Sales & Marketing. Guidry spent almost 5 ½ years as the VP, and then SVP, of Supplier Relations for AD’s US electrical group (now IESD).

According to the press release:

“ McNaughton-McKay Electric Company is pleased to announce the appointment of Steven Guidry as Executive Vice President, Sales & Marketing. In this role, Guidry will be responsible for leading sales, marketing, business development, and overall growth strategies across the McNaughton-McKay organization.

“Steven is a seasoned leader with a long track record of success” said Mark Borin, President & CEO. “His strategic mindset, deep industry relationships, and passion for driving value will strengthen McNaughton-McKay’s ability to deliver innovative solutions and service to our customers and partners.”

Guidry brings over 30 years of experience in the electrical distribution and manufacturing sector, with over 20 years in electrical distribution. Prior to joining McNaughton-McKay, he served as Senior Vice President of AD’s Electrical – U.S. Division, where he was responsible for supplier partnerships and strategic initiatives focused on driving mutual success with AD’s independent distributors and suppliers. His career also includes leadership roles at The Reynolds Company (a wholly owned subsidiary of McNaughton-McKay), Panduit, and JD Martin Co. Guidry is a graduate of the University of Louisiana at Lafayette.

“It’s a privilege to join McNaughton-McKay, a company known for its excellence and employee ownership culture,” said Guidry. “I am deeply grateful for my time at AD and proud of what we accomplished together. I look forward to this next chapter and the opportunity to contribute to McNaughton-McKay’s continued success. ““We are excited to welcome Steven to the McNaughton-McKay leadership team,” added Borin. “His expertise, leadership, and dedication to building strong relationships align perfectly with McNaughton-McKay’s values and strategic vision.”

Steve is well acquainted with McNaughton-McKay, a strong AD member, and having worked or its Reynolds Company division as VP Operations & Marketing for 11 years.

Given the recent merger of IMARK and AD, resulting in many supplier negotiations to “rationalize and harmonize” supplier deals, the timing is very surprising. With McNaughton-McKay’s Executive Chairman, Don Slominski, Jr., serving on AD’s corporate board of directors, it is presumed that the transition is amicable although a supplier did comment “lots of changes over there currently”, indicating that the transition was not planned after the group’s recent Network meetings in Colorado.

No replacement for Guidry has been publicly announced, however, Jerry Knight, formerly of IMARK, also serves as a SVP of Supplier Relations for AD’s IESD division.

Congratulations to Steve on his new role.

JF Nolan

In a planned succession plan transition, JF Nolan announced that John Hoelz is now the CEO of the company. Todd Stillman was named President, Gerry Clark is VP Operations, and Kevin Bradway is now VP Sales for this western Michigan / eastern Wisconsin independent manufacturer representation.

All are long-term members of the firm.

Helix

And for those on the West Coast and the manufacturing community, some contractor news.

Helix, a large contractor with locations in Las Vegas, Reno, and Salt Lake City, announced that Victor Fuchs is now President & CEO.

According to the press release:

“Helix Electric, LLC. (Helix), an award-winning electrical contractor that specializes in design-build and highly complex electrical projects throughout Nevada and Utah, is pleased to announce the promotion of Victor Fuchs to president and CEO.

Fuchs, who has been with the company for nearly four decades, previously served as president and managing member of Helix. Under his leadership, the company has expanded its market presence, successfully delivered high-profile projects, and achieved record-breaking revenue growth.

Since joining Helix in San Diego in 1987, Fuchs has played a pivotal role in the company’s evolution. His journey from an entry-level estimator to leading the largest non-union electrical contractors in Nevada and Utah is a testament to his deep industry expertise and firm commitment to leadership and excellence.

“I am honored to continue leading Helix Electric, LLC and Helix Electric of Utah, LLC as president and CEO, a company that has been my professional home for over 30 years,” said Fuchs. “From starting at the bottom to leading this incredible team, my journey has been fueled by a deep commitment to our employees, clients, and the communities we serve. As we continue to break annual revenue records and expand our footprint across the region, I remain dedicated to our mission of fostering a workplace culture where we empower people and power projects for many years to come.”

Products

Current

There has been lots of supplier line movements announced, quietly and visibly, lately. One of the more prominently announced is changes by Current in the Michigan marketplace.

According to two press releases, Current is consolidating the state, transitioning the line from EMI and MLS to Wizard Lighting Company for both its GLI and HLI portfolios.

In the press release, key management from both companies shared,

• “We are excited about partnering with Wizard Lighting Company and look forward to providing the Michigan market with an exceptional customer experience for the commercial, industrial and non-metered/municipal markets,” Current Chief Commercial Officer Chip Taylor said.
• “Wizard Lighting Company is beyond excited to announce our newest partner, Current, for both HLI and GLI portfolios. Current positions Wizard Lighting to compete at the highest level with industry-leading manufacturing, products, technology, tools and services. We are in the process of adding additional resources to grow with our new strategic partner. With offices in Detroit and Grand Rapids, Wizard Lighting Company is motivated to exceed customer expectations and brand experience for the State of Michigan,” said Bryan Wizniewski, Wizard Lighting Company’s Chief Executive Officer & Principal.

The moves are effective June 1.

Others

I’ve been told of some other significant line changes that are helping a couple of agencies strengthen their line card in nascent markets where they had nominal coverage and have been told it’s “okay” to share, however, I am awaiting confirmation to ensure affected firms are notified officially from the suppliers.

Suffice it to say that manufacturers are evaluating their representation based upon performance, succession plans, and representatives having strategic plans for their business as well as a plan to grow the business / take share.

Companies

Q1 was a quiet quarter on the acquisition front.

Galco and Brozelco

For much of the quarter the only deal that was announced was Galco’s acquisition of Brozelco in late February.

Brozelco, a 30+ year old company, based in Tennessee, is an industrial automation distributor. This continues Galco’s expansion into the industrial automation space.

The acquisition market picked up a little in March with:

Wiseway Acquires Northport

Wiseway acquiring Northport Electrical Supply, based in Northport, AL (near Tuscaloosa).

Northport is a small, single location distributor that was previously an IMARK member.

Wiseway is an electrical and plumbing distributor whose strength is in the Kentucky market. This is an indication of the company’s interest in expanding beyond its core market and probably seeking to fill in between the Cincinnati and Alabama markets. The company previously has made at least one other small acquisition (a plumbing distributor). Wiseway is, at least partially, by CID Capital, a private equity firm.

This also marks a continuing trend of small, mostly single location, distributors selling to mid-sized companies. The driver of this is owners seeking to exit due to lack of other family members in the business.

Rexel and Schwing

The largest deal of the quarter was announced at the end of the quarter with Rexel acquiring Schwing Electric, an AD, formerly with IMARK, member.

Schwing, in business for almost 65 years, is known as Long Island’s largest distributor on “the Island”, covering it with six locations.

The press release shared:

“ Rexel USA is pleased to announce that it has acquired Schwing Electrical Supply, a leading distributor throughout Long Island, New York. This strategic acquisition aligns with Rexel USA’s long-term growth objectives, which emphasizes the acquisition of high-quality distributors to expand our footprint in key markets with strong growth potential. Long Island is poised for substantial growth, fueled by planned investments and construction activities in residential, commercial, and healthcare, which will serve as a significant catalyst for Schwing’s continued growth and success.

Founded in 1960 by Charles Schwing and headquartered in Farmingdale, New York, Schwing Electrical Supply Corp has built a strong reputation as a premier electrical distributor in the Long Island area. With over six decades of experience, Schwing has consistently demonstrated a commitment to exceptional customer service and reliable product availability. Schwing operates six locations and employs over 100 dedicated associates.

Following the acquisition, Rexel USA intends to operate under the Schwing Electrical Supply banner, fully leveraging the strength of Schwing’s established brand and talented workforce.

Roger Little, CEO of Rexel USA, commented on the acquisition, stating, “Schwing is the leading electrical distributor on Long Island, known for its long-standing history, strong culture, superior service, and talented associates. This acquisition marks a significant expansion into the Long Island market, which presents attractive growth opportunities. By combining our strengths, we will deliver even greater value and service to our customers, associates, and suppliers. I look forward to the opportunities that lie ahead.”

Peter Schwing, Jack Dunigan, and Bob Dunigan Jr. have successfully co-operated Schwing Electrical Supply as brothers for over 50 years. Through their stewardship, Schwing has grown to become the premier electrical distributor serving the Long Island market, earning a reputation for profound reliability and a customer-first focus. Their lasting legacy lies in the exceptional team of knowledgeable associates they’ve built, dedicated to delivering superior service and quality. Peter, Jack, and Bob expressed, “We are excited to embark on the next chapter of Schwing Electrical Supply through our partnership with Rexel. Our father, Charles Schwing, would take great pride in the accomplishments of the company he founded and the promising growth opportunities that lie ahead as we join Rexel. We would like to express our heartfelt gratitude to our employees, whose unwavering dedication has been the foundation of our success, as well as to our customers and suppliers for their steadfast support over the years.”

This is a quality acquisition for Rexel. While Schwing is not an industry household name, it has always been recognized by those in the New York marketplace as one of the few strong independents serving the island as the national chains focus on New York City. For those familiar with the market, Long Island is it’s own ecosystem and not easily served by NYC-focused distributors.