IMARK Members Involved in March Deals

Two IMARK members were involved in deals this month.

Wiseway, located in Lexington KY, acquired AD member Kentucky Lighting and Supply. Wiseway now has 10 locations from central OH and into Kentucky.

Additionally, CED recently completed the acquisition of Nu-Lite Electrical Wholesalers, the six-branch distributor focused on supporting electrical contractors in the New Orleans metropolitan area. Nu-Lite was ranked #94 on the 2018 Electrical Wholesaling Top 200 list.

This now gives CED fourteen locations in the state of Louisiana.

The six Nu-Lite locations will continue to be operated under the Nu-Lite brand and be managed by Rick Corales. Nu-Lite is the leading commercial contractor-oriented electrical distributor serving the New Orleans area.

While no details have been mentioned about Nu-Lite’s marketing group affiliation, it should be noted that Walters Wholesale and U.S. Electrical Services, both of whom are related to CED but not run by CED, are members of IMARK.

CED, as is its nature, allows its businesses / profit centers to operate pretty autonomously so the acquisition shouldn’t have much of any impact on customers and staff.

The continued acquisitions in the industry highlight the challenges that succession can bring while, at the same time, the opportunities it can bring. In Wiseway’s case it becomes a growth strategy given that the three Kentucky Lighting branches expand Wiseway’s geographic reach and expose the company to new customers, hence the deal is accretive. The same can be said for CED as this gains the company significantly more market share in the New Orleans area.

The moral for many … if you are interested in growing through acquisition, stay close to potential targets and build relationships. Some of these deals take time, some happen quickly.

Question becomes … who is next? We’ve heard of others “in play” as well as some that are “on the look-out for opportunities”.

Food for thought ….

If you’re thinking of selling, interested in looking, we can help. Concerned about succession planning or building a growth strategy? Give us a call. We’re not an M&A firm, but we can assist on strategy to help you.