CED Acquires Wildcat

Wildcat Electric Supply, a 53-year-old, two location distributor based in Houston, is the latest independent electrical distributor to sell.

The second-generation distributor who served the contractor and industrial market in Houston and San Marcos, TX, sold to CED.

Knowing Keith Hessemer from back when I was with IMARK, Keith valued “independence” and, presumably, in thinking about selling, the CED profit center business model attracted him. This, coupled with the fact that Wildcat is a Schneider Electric house and CED is a strong Schneider Electric supporter, makes it a good fit.

Keith will continue to manage the business and shared “Wildcat Electric Supply is honored to become part of the CED family of Electrical Distributors. The Wildcat name will carry on and we look forward to continuing what my father Clark Hessemer started back in 1968. We will continue to serve our customers in providing the products and services we are known for in the great State of Texas”.

As manufacturers and reps know, CED’s unique model enables it to manage multiple brands, and profit centers, within the same metropolitan area as each profit center is managed independently and can pursue its desired markets. While some districts / divisions have migrated to common lines for selected offerings, this is by local choice (typically based upon support in the market) and not by corporate mandate. Houston is one of those markets where CED has many different outlets and, while a chain, acts as individual businesses.

According to DISC, the electrical distribution industry’s resource for market data, the Houston metropolitan market is a $3.8 billion market (2021) and is project to be $4.5 in 2024 (but could accelerate if oil / gas companies increase capital expenditures) dominated by national chains. The major independents with presence in the market are Wholesale Electric, Elliott Electric, Dealers Electric, Reynolds Electric (McNaughton-McKay) and Summit has a presence. There are few, if any, mid-size independents remaining in the market. It’s another market that has evolved from independents to chains.

This market, along with some other major metropolitan markets, is a microcosm of the change that the industry is undertaking that will impact the entire industry ecosystem and requires companies to consider scenario planning and evaluating their go-to-market strategy.