Industry News

We would like to take this opportunity to give a special thanks to this edition's sponsor -- Metropac. Metropac sells exclusively to wholesalers, OEM’s, and manufacturer reps, throughout the United States, Canada and Mexico. Major product lines include, Honeywell, Invensys, Johnson Controls, Robertshaw, White-Rodgers and much more.  Visit their web site at www.metropac.com to see their complete product offerings. Or call their sales department at 800-852-HEAT(4328)

 

To find out more about special e-newsletter advertising opportunities, please contact your Wholesaler sales rep by visiting www.thewholesaler.com.

 

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Metropac's Annual Spring Stock Up Promotion

 

April 1st thru 22nd ONLY!

This is no April Fools. These are LOW, LOW prices. Spring is here, and that means it’s time for Metropac’s annual spring stock up promotion. Stock up now and take advantage of our low promotional prices on Honeywell, Johnson, Robertshaw, Taco, White Rodgers, and other major product lines. Spring stock up orders will be accepted April 1st thru April 22nd only. Click here or call 1800-852-4328 for the 2011 Spring Stock Up Promo.

 

Metropac sells exclusively to wholesalers, OEM’s, and manufacturers reps offering the best prices and widest inventory selection. We stock an extensive inventory of residential and commercial controls to combustion testing equipment to commercial components. Whether you need to stock your shelves or get that hard to find control the next day, Metropac is here to help.

 

Apax Partners to acquire Activant Solutions and Epicor

Activant Solutions Inc., a leading technology provider of ERP and point-of-sale software serving mid-market retailers and distributors, has entered into a definitive agreement to be acquired by funds advised by Apax Partners, one of the world's leading private equity firms with a strong heritage of technology investment. Activant is currently owned by investment funds affiliated with Hellman & Friedman LLC, Thoma Bravo, LLC and JMI Equity, and by management.

Apax also announced that it is has entered into a definitive agreement under which funds advised by Apax will acquire Epicor Software Corporation, a provider of enterprise business software solutions for the mid-market and the divisions of global 1000 companies. Apax intends to combine Activant with Epicor to create one of the largest global providers of enterprise applications focused on the manufacturing, distribution, services and retail sectors. Following completion of the merger, the combined company will be called Epicor Software Corporation.

"This transaction is extremely positive for Activant's customers, employees and investors alike," said Pervez Qureshi, Activant president and CEO. "Our market leadership and expertise in distribution perfectly complements Epicor's expertise in the manufacturing and services sectors. ... With Apax, we are partnering with one of the premier investment firms in the world and one that is very much focused on growth and delivering value to the customers of its portfolio companies. The combined company will have over 30,000 customers, $825 million in annual revenues, and the most visionary business application software and vertical industry expertise in the market today. Apax is committed to growing the businesses in which they invest and has an excellent track record of working as a strategic partner with management to build high-growth companies."

 

ASA members report revenue growth, inventory rebuilding

 

For the 10th consecutive month, American Supply Association members have reported growth, showing a 12.1% rate of growth in per day workday revenues for the month of February 2011 as compared to the same month in 2010, up 1.9% as compared to 2009 and down 6.7% as compared to 2008. Plumbing, heating and pipe, valve and fitting distributors are up 11.4 % YTD and 6.6% on a rolling 12-month basis.

 

Gross profit margins are about the same as compared to last year, and there remains no clear distinction on margin trend based upon size of distributor.

 

Inventory rebuilding continues for the fifth consecutive month, with a 3.6% growth in February; although inventory values are still down 5.2% as compared to 2009 and 10.1% as compared to 2008. This rebuild followed 20 consecutive months of declining inventories. This leaves distributors with improved inventory turns in each of these time periods across the industry.

 

Days sales outstanding at 47.5 days also has improved to the best point since records have been kept, going back to 2009. This is a 3.5-day improvement over 2010. With relative even gross profit margins and employment, the bottom line for distribution is better than 2010.

 

Ferguson reports revenue growth of 9 percent

 

Ferguson’s parent company, Wolseley plc announced its first-half results for the 2011 fiscal year. Wolseley reported revenue increase of 5% on a like-for-like basis.

 

Ferguson’s like-for-like revenue growth for the first six months was 9%, with a further 4% of growth due to the strengthening of the U.S. dollar. All of Ferguson’s major business units generated growth, driven principally by stable new residential and repair and remodel markets. As well, all major businesses continued to gain market share in the first half. Ferguson sales accounted for 40% of Wolseley’s total revenue.

 

“We are very pleased with our performance for the first half of our fiscal year,” explained Ferguson CEO Frank Roach. “It was nice to see year-on-year growth and out-performance in all of our businesses.”

 

Ferguson’s blended branches, which service residential and commercial customers, had a strong first half with solid growth, as the remodel markets held up well. The industrial PVF and HVAC businesses were also strongly ahead. The commercial fire and fabrication business, which provides fire protection products and services, returned to like-for-like revenue growth in the period, although commercial markets generally continue to lag residential markets. Ferguson’s trading margin was 5.5%, up from 4.1% in 2010.

 

Uponor opens new distribution center in Ontario

To address the rising customer volume in Eastern Canada, Uponor recently moved to a larger, more operationally efficient distribution center in Brampton, Ont. The seamless transition to the new facility, which occurred in late March, ensured no disruption to customer service.

“The new distribution center features 24,000 square feet, with 28 feet of clear-height warehouse space,” said Greg Lawler, vice president-Supply Chain. “This provides Uponor with a facility that meets our long-term needs in Eastern Canada.”

The new Brampton Distribution Center is located in the Greater Toronto area’s newest master-planned business park. “We are excited about moving to a larger, more modern facility,” said Bill Gray, general manager of Uponor Ltd. “This new facility will allow us to work even more efficiently and to ensure that we continue to meet our partners’ needs.”

New Products

Water-saving showerhead www.cfgonline.com A new showerhead that flows at a rate of 1.75 gpm is available as a stand-alone item or as an option on tub and shower products. Features include optimized spray pattern, rubber spray formers that provide the ability to wipe away hard mineral deposits, certification to meet EPA WaterSense® criteria and IAPMO Green standard, ADA compliance and a 10-year limited warranty. Cleveland Faucet Group.

Hands-free faucet adapter www.chgusa.com Encore hands-free electronic faucet adapter helps prevent cross-contamination and conserves water. Can be used in food service, healthcare and other commercial environments; ideal as a low-cost, hygienic alternative when retrofitting existing handsink faucets. Converting any existing faucet into an automatic hands-free faucet takes less than 5 minutes, and the adapter fits on most standard faucets with aerators using a simple screw-on installation. Component Hardware Group.

Mini drain snake www.gtwaterproducts.com Quickly unclog stoppages in sinks, showers, bathtubs and urinals. The Drain King Mini Snake is one of the longest units on the market with 26” of cleaning power to attack stoppages all the way into the trap. Made of space-age plastics and safe to use. Can be forced into the drain line to clear stoppage or twisted as it goes down the line to attack stoppage like a sewer snake, without worries of rust or kinking the unit. No chemicals, no mess and no more slow-running drains. GT Water Products.

Movers & Shakers

Anvil International announced that Rick Laviolette has joined the company as VP and GM of Anvil Engineered Pipe Supports (EPS). Anvil International is a subsidiary of Mueller Water Products Inc. Laviolette has 29 years of diversified management experience in sales, manufacturing and applications engineering. Most recently, he was president of Resolute Composite Technologies.   Chris Holbert has joined Modern Supply as an outside sales representative covering Knoxville, Tenn., and the surrounding area. Modern Supply, a kitchen, bath, lighting and Rheem distributor, has showrooms in Knoxville, Johnson City and Chattanooga. Holbert is responsible for new business development in both the contractor and consumer markets. He has over 13 years experience in the kitchen and bath industry.   M&G DuraVent Inc. CEO and President Stephen Eberhard has made the decision, with the Board of Directors' acceptance, to resign his positions effective May 31. The Board will oversee the process for the identification and selection of a successor. The company does not expect to make any additional structural changes or executive leadership changes in the near future.