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When Safety Matters
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Wesco has acquired a safety distributor. Previously, Wesco pur-
chased Conney Safety and that acquisition has paid off handsome-
ly. In fact, Wesco recently added 35 salespeople to its Conney staff.
Wesco has made ten acquisitions since June of 2010. In a confer-
ence call with analysts, John J. Engel, chairman, CEO, and presi-
dent of Wesco said, “These acquisitions have strengthened our
electrical core, added product and service offerings to our port-
folio, expanded our global footprint, and improved our overall
market position. Our acquisition pipeline is at a record level, and
we see excellent opportunities to further strengthen our company
via acquisitions throughout this year.”
Earlier this year, Kaman’s chairman and CEO Neal J. Keating
outlined a series of strategic initiatives to grow the distribution seg-
ment of its business. Making additional acquisitions is one strategy.
Earlier this year, the company announced it would acquire all
the operating assets of B.W. Rogers Company, a broad line distributor of fluid power products, including hydraulic hoses, fittings,
pumps, motors, cylinders, valves, pneumatics, machine control,
and automation products. The acquisition significantly expands
Kaman’s footprint in both fluid power and automation. The acquisition also may result in Kaman becoming the sixth largest fluid
power distributor in the country.
B. W. Rogers is one of largest distributors of Parker Hannifin motion and control products and operates from 21 locations in seven
states from the Northeast to the Midwest. B. W. Rogers’ branch
network includes 20 authorized Parker locations, which contain 12
ParkerStores. In the past two years, Kaman has acquired six other
Company executives estimate that the Rogers acquisition will
lead to Kaman being one of the largest Parker distributors in the
Picking Up the Pace
Experts expect the pace of the industry consolidation to pick up.
Reed Anderson says that economies of scale represent a significant
advantage in distribution — whether in sourcing, shipping, or
value-added services to customers.
“Consolidators are also seeking to find more ways to entrench
themselves with customers — whether through expanded product
offerings, service, or geographic coverage,” he says. “Acquisitions
can achieve this in a step function, versus trying to pursue one
internally. The threat from e-commerce is also accelerating consol-
idation, as certain companies without e-commerce capabilities in
some segments are struggling to compete with those that excel at
Overall, the world economy is seeing an increase in the number
of transactions across many business segments.
Global deal volume in the last quarter was $992 billion, according to data compiled by Bloomberg. That includes pending,
completed, and proposed transactions. That number puts this
three-month period on pace to be the biggest year for M&A since
the third quarter of 2007 — the best year ever for deals.
Jack Keough is contributing editor of Industrial Distribution. He
can be reached at John.Keough@comcast.net.