Green Mountain Strikes Again. Deal #25. Davis Electrical

Green Mountain Electric Supply acquires 92 year old Davis Electrical and 127 year old Korff Electric

The distributor acquisition train continues to roll on with Green Mountain Electric Supply (GMES) announcing the industries 25^th acquisition since July. Green Mountain acquired two location Davis Electrical Supply.

This comes on the heels of Green Mountain’s recent acquisition of Generation Electric Supply.

Davis Electrical operated a location in Buffalo under the Davis Electrical Supply name and another location in Lockport, NY under the Korff Electric name.

Davis is / was a 92 year-old company, having been founded in 1930! The company serviced the residential and commercial lighting market, ran a lighting showroom, and also served the DIY market.

In 1988, Davis acquired Korff Electric, which had been in business since 1895, making it a 127 year old electrical distributor.

While the Buffalo market for many years has been considered “depressed”, the area has been undergoing a renaissance.

The two locations now give Green Mountain 26 locations as it seemingly rolls-up the small one and two location distributors in northern New England and upstate and western New York. Perhaps someone knows something about the potential of the marketplace? Perhaps the state of New York has various economic incentive programs to attract businesses and Green Mountain is positioning itself as “the” distributor in the market?

Or, perhaps there has been a gold mine found in the White Mountains of Vermont on property that Green Mountain ownership owns?

According to Jeremy Henderson, VP Sales, “Growth to us is adding resources for our customers and employees. We think long term. Our ownership team invests a lot back in the business. You don’t see that too often in this day and age in our industry.”

Green Mountain will be a 70 year old / young company next year.

Sounds like a fun story from a quiet company.

And rumor has it that the company is not done rolling up western NY with at least one more planned, perhaps more. Will there be many other distributors left in the marketplace?

The company is carving an interesting niche and has found a way to profitably serve rural and, in many cases tertiary (or lower) markets that have limited potential but a need. These are markets that others ignore because of the seemingly small potential. But the potential is to potentially have dominant share in small markets. It’s all about scarcity and relationships.

In 2021, Electrical Wholesaling had Green Mountain ranked #96 which would have put revenues around $73 million and Datanyze has them listed at $61 million. With the acquisitions, growth and price increases it is easy to suspect that the company exceeds $100M.

Again, congratulations to the Green Mountain team.