Acquisition Activity Picks Up in May

Acquisition activity this year has been very mild. After 117 deals being announced over in 3 ½ years, there were only three deals announced in Q1. But in the last week, another four electrical / lighting distributor deals were announced.

• Valley Lighting was sold to a private equity firm.
• Winsupply acquired four location United Lighting & Supply out of Fort Walton Beach, FL
• USESI acquired Swift Electric and will merge the operations into its Monarch region, and, most recently,
• Hein Electric Supply acquired Laser Electric Supply, a small single location distributor
• And, while not an acquisition but a “virtual branch opening”, we heard that Eckart Supply is entering the Cincinnati marketplace by “acquiring” a significant number of salespeople from an incumbent distributor.

Private Equity Invests in Valley Lighting

According to an article in Business Wire, “Caymus Equity Partners LLC, an Atlanta-based private equity firm, is pleased to announce it has acquired Valley Lighting, LLC, headquartered in Linthicum Heights, Maryland. The transaction was completed in partnership with the Company’s CEO, Kathy Deppe, and Executive Vice President, Tommy Jones, who will maintain significant ownership stakes in Valley and continue to lead the business.

Valley is a full-service provider of lighting and shading solutions for complex commercial construction and renovation projects across the Mid-Atlantic. The Company partners with electrical contractors, general contractors, and facility owners to design and deliver custom lighting and shading systems, with a comprehensive offering that spans design consultation, product sourcing, project management, and controls integration. Valley serves a variety of recession-resistant end markets including data centers, government, healthcare, and education.

“We’ve spent decades building Valley into the most trusted partner for high-end, complex commercial projects,” said Kathy Deppe, CEO of Valley. “In Caymus Equity, we found a partner who shares our values and has a track record of supporting founder-led businesses through their next phase of growth. We’re excited for what’s ahead.”

“Kathy, Tommy, and the Valley team have built a company with a well-earned reputation for excellence and long-standing customer relationships,” said Chris Faux, Partner at Caymus Equity. “Valley is exactly the type of business we look to back — operationally strong, customer-first, and poised for growth. Having recently exited a very successful investment in commercial HVAC, TriplePoint MEP, we quickly recognized the value of Valley’s business model and its customer-centric approach to more complex opportunities. We’re excited to help the Company expand its geographic footprint and build on its legacy as a best-in-class lighting and shading partner.”

The investment in Valley on May 1, 2025, marks Caymus Equity’s sixteenth platform investment and the fourth investment out of Caymus Equity Partners Fund II, L.P. To support the acquisition of Valley, Caymus Equity partnered with SI Private Capital, LongWater Capital Solutions, Midwest Mezzanine Funds, and Enterprise Bank.”

Valley Lighting was founded in 1965. In 2020 it was reported that their revenues were $70M, however, with the growth / volatility of the lighting market, estimated current revenues are unknown, however, Caymus sees potential given the comment that this is a “platform” investment. This infers that Caymus and its partners plan to invest into the business to drive organic growth and potentially grow via acquisition. This sounds similar to when Chelsea Lighting was acquired by a private equity firm in 2020.

Winsupply and United Lighting & Supply

According to Winsupply, ” Winsupply Inc., one of the nation’s largest wholesale distributors, has acquired United Lighting & Supply Co.

United Lighting & Supply which operates four locations in Florida, specializes in the wholesale distribution of electrical apparatus, supplies, lighting, and major household appliances.

From its main operation in Fort Walton Beach, Florida, ULS sells electrical products and hosts a lighting and appliance showroom.

Its customers include those in residential, commercial, industrial, and government construction and maintenance markets.

“United Lighting & Supply Co. is proud to become part of the Winsupply Family of Companies,” said Jay MacDonnell, former president, United Lighting & Supply Co. “We look forward to going into the future as a part of the Win team.”

Founded in 1973, United Lighting & Supply primarily serves the markets of southeastern Alabama and northwest Florida.

ULS also has three other locations in Pensacola, Destin, and Lynn Haven, Florida. Its locations in Pensacola and Destin include lighting and appliance showrooms. The company has a total of 34 employees.

ULS will do business as United Lighting & Supply Co., A Winsupply Company.

“United Lighting & Supply’s four locations in the southeast complement our existing footprint in this region of the country as we continue to expand our presence in the market,” said Jeff Dice, President, Winsupply Inc. “United Lighting & Supply has been under the same management since its founding in 1973, and we’re delighted that Jay and Deborah MacDonnell will continue to contribute to the success of the company.”

United Lighting & Supply was an IMARK Group member prior to the merger of IMARK and AD, as was Winsupply (which is no longer part of AD’s IESD division.) Winsupply’s revenues exceed $7.8 billion of which 10-12% is electrical.

Swift Joins USESI and its Monarch Region

Swift Electrical Supply was acquired by USESI and will be merged into the company’s Monarch region.

According to an announcement by Highland Advisory Group, the firm that advised Swift, “Swift Electrical Supply Company, a NJ-based electrical products distributor, has been acquired by USESI.  A third-generation family-owned company, Swift was founded by current owner and President Augie Sodora’s grandfather in 1943.  From the beginning Swift dedicated itself to a customer-first philosophy that allowed them to thrive in a highly competitive market.  As one of the premier “independents” in the region, Swift served its customers out of four locations distributing to over 1,000 building and electrical contractor clients throughout New Jersey, New York and Connecticut.

Highland Advisory Group partnered with owner-President Augie Sodora to interview different investor groups and understand which truly valued the company’s expert team and customer base. Some of Swift’s customers dated back as far as 80 years when they were founded.  USESI and their regional operating company Monarch Electrical Co. clearly understood Swift’s legacy had been built on relationship-driven service, community commitment, and an unwavering dedication to customer success—principles that closely aligned with the core values of both USESI and Monarch.

With over 100 years of experience, U.S. Electrical Services, Inc. (USESI) is the country’s largest independent electrical wholesale distributor. The American owned company is comprised of 14 regional businesses selling products from over 1,000 manufacturers out of 125 brick and mortar locations.  At any point, it is carrying over $100M of inventory across 300,000 unique products specializing in lighting, wire & wiring devices, tools, power distribution, control automation, datacom and solar.”

Highland Advisory Group represented Augie Sodora and Swift Electrical Supply Co. in its acquisition by USESI. Highland’s mission is to empower business owners with the tools, resources, and expertise needed for a successful exit, when they want to, on their terms, and at maximum value.  At Highland we empathize and admire all that comes with being a business owner.  Our sole purpose is to free successful & passionate business owners and give them the reward, recognition, and legacy-enhancing transition they deserve for their life’s work.”

This now gives Monarch 10 locations in New York and northern New Jersey.

Hein Electric Expands to 10 Locations

According to a press release received from Hein Electric Supply, “Hein Electric Supply Company acquired Laser Electric Supply & Lighting Gallery.

Laser Electric Supply, located in Walworth Wisconsin outside of Lake Geneva, specializes in servicing electrical contractors, industrials, and hospitality customers in southern Wisconsin.

Founded in 1990 by Jeff Liberman, Laser Electric Supply grew to 13 associates, added a lighting showroom and expanded geographic coverage in southern Wisconsin from Kenosha to Janesville.  Hein Electric Supply plans to operate out of this current 15,000 square foot facility located at W5724 Willow Bend Rd.

Hein Electric Supply has a long standing 80-year history as a full-line electrical distributor servicing contractors, industrials, municipalities and national accounts.  With this acquisition, Hein Electric Supply grows to 10 locations in Wisconsin employing 80 associates.

“With this acquisition, Hein Electric Supply expands our services offering footprint in southern Wisconsin that allows for growth in additional targeted markets.  Our Projects, Operations, E-Commerce/Marketing, and Business Development teams have immediate plans in place to leverage the Laser Electric Supply name.”, said Chris Stoming President of Hein Electric Supply Company.

Both organizations are part of AD and the recently formed AD Independent Electrical Supply division.”

Laser was a member of IMARK and joined AD’s IESD division through the merger. According to Hein, they had considered expanding into this market for years.

Take Aways

• Two of these acquisitions were for small distributors. While Winsupply is not a mid-size company / acquirer, their business model is, essentially, small, entrepreneurial companies but “owners” seeking “co-investors” and operational support. Hein is a mid-sized distributor acquiring a small distributor. Valley is another example of lack of succession.
• USESI’s acquisition of Swift was a significant acquisition and a further acquisition of independent Eaton distributors. USESI typically operates with a CDC model.
• In considering most of the deals so far this year, perhaps we’re seeing the next “phase” of acquisitions with mid-sized acquiring small companies (which are not a focus of larger companies due to the cost of doing an acquisition and their interest in diversification.)
• With these acquisitions, the acquirers are capturing more revenue to spread over their ever increasing digital / technology costs and will also be able to leverage other elements of their fixed cost structure. Further, increased volume will, inevitably, drive other purchasing benefits and changes in business dynamics.
• With the 4 acquisitions, this is 4 less independents, all of whom were AD members and at least one was an NAED member, further highlighting the need for NAED to encourage participation by AD members to ensure association vitality with the message of “support the 30-70% of your supplier purchases that are outside AD.”

Congratulations to the acquirers and those who sold.