Industry News
We would like to take this opportunity to give a special thanks to this month's sponsor -- Bradford White Corporation. Bradford White Corporation is a full line manufacturer of residential, commercial and industrial products for water heating, space heating, combination heating and storage applications. The company is headquartered in Ambler, PA and has manufacturing facilities in Middleville, MI, Niles, MI and Rochester, NH.
Bradford White was recently ranked highest among water heater and boiler manufacturers in satisfying subcontractors, according to the J.D. Power and Associates/McGraw-Hill Construction 2006 HVAC and Water Heater/Boiler Subcontractor Satisfaction Study released recently. Bradford White ranks highest among water heater/boiler manufacturers, with the highest ratings in four factors: warranty and repair; ordering process; credit/billing and product. This is a positive reflection on the importance Bradford White is placing on satisfying their customers.
To find out more about special e-newsletter advertising opportunities, please contact your Wholesaler sales rep by visiting www.thewholesaler.com.
Bradford White hosts memorable sales meeting
Situated on the coast of Puerto Rico and the sparkling blue waters of the Caribbean, the El Conquistador resort in Las Croabas provided a beautiful venue as Bradford White, Laars Heating Systems, Bradford White-Canada and Niles Steel Tank sales representatives from throughout North America gathered March 19-21. During the three-day meeting, almost 400 people from Bradford White and its subsidiary companies celebrated Bradford White’s 15-year anniversary as an employee-owned company.
Bradford White has had three acquisitions since its last sales meeting in 2002. This was the first time that representatives from Bradford White, Bradford White-Canada, Laars Heating Systems and Niles Steel Tank joined together to exchange ideas and strategies, interact with each other, forge relationships and forecast plans for the future.
The size and scope of the sales meeting has changed with the growth of the company. The 1993 meeting hosted approximately 100 reps/employees with one company; this year’s event drew almost
400 attendees from four companies under the Bradford White umbrella.
The first night of the meeting was the official opening of the sales gathering. Bradford White rented the entire island for its opening program, which celebrated the anniversary as an employee-owned company. Bradford White-sponsored free-time activities included golf, deep-sea fishing, catamaran sailing and a shopping trip to Old San Juan. Sales achievements awards
Joseph T. Notte, national sales manager for Bradford White, presented the award for “Best of the Best-Total Company” to Signature Sales Inc. of Corona, Calif. Other Bradford White reps honored were: Preferred Sales Inc. of Hermitage, Pa.; Wiggs, Haun & Bohan of Nashville, Tenn.; Michel Sales Agency of St. Paul, Minn.; and Bradford White -- Canada’s choice was Equipco Ltd. of Vancouver, B.C.
Two additional awards were given to Bradford White executives. Bruce Carnevale, vice president-sales & marketing, presented the Sales MVP Trophy to vice president and general manager of the Middleville manufacturing facility, Eric M. Lannes, for his exceptional support of the sales team. Keynote speaker for the evening, retired U.S. Army General and Secretary of State Colin Powell presented Carnevale with the award.
PH&I acquired by First Supply
Madison, Wis. -- First Supply LLC has acquired the assets of PH&I Supply Co. With the addition of the PH&I location in Kenosha, Wis., the First Supply family of locations grows to 24.
PH&I Supply Co., also a Wisconsin-based plumbing distribution company, has been in business for more than 60 years. Joining with First Supply, which is celebrating its 110th anniversary this year, ensures PH&I ’s Southeastern Wisconsin customers continued years of outstanding service.
Joe Poehling, chairman and Dick Adix, president, of First Supply, recently met with PH&I employees and welcomed them to the First Supply family. “I am very excited about our future as one company and I am personally looking forward to working with each of you,” Poehling told them.
As a member of First Supply, Michael (Mick) Medvecz, former president of PH&I , will stay on in the new role as director of sales for the Kenosha area.
First Supply now offers Southeastern Wisconsin eight convenient locations to better serve its customers. The Kenosha facility will be under the direction of Kevin Miller, general manager of the Southeastern Wisconsin locations.
This is First Supply’s second acquisition in recent months. First Supply acquired H.W. Theis Co. in May.
First Supply LLC is a regional wholesale distributor that started in La Crosse, Wis., in 1897 as La Crosse Plumbing Supply. Now with 24 locations in the Upper Midwest and employing more than 500 people, First Supply is a family owned, single source provider of plumbing, heating, cooling, municipal, waterworks, pump/well & septic, builder and industrial supplies.
REHAU opens second Alabama plant
Leesburg, Va. -- REHAU is pleased to announce the grand opening of its second manufacturing plant in Cullman, Ala. Located adjacent to the company’s existing automotive production plant, the new Plant Cullman Construction more than doubles capacity for the production of cross-linked polyethylene piping (PEX) and will create up to 100 additional jobs over the next four years.
To accommodate the increased production, REHAU has invested more than $20 million in construction and equipment for the new 200,000-square-foot facility. The expansion provides space for PEX production, warehousing and shipping.
“With the start-up of the new lines, Plant Cullman Construction will be able to keep up with growing demand and produce nearly all of REHAU’s North American PEX requirements,” said Dr. Kitty Saylor, REHAU North America chief executive officer.
Plant Cullman began manufacturing for the construction industry in 2003. PEX produced at the plant is used in radiant heating, snow and ice melting, fire protection and plumbing applications.
“When we realized that our demand justified a dedicated PEX production facility, Plant Cullman was the obvious choice,” explained Niklas Braun, REHAU vice president-operations and technology. “It is our newest North American plant, making it the best equipped to take on more complex processes such as the cross-linking of PEX. Cullman also has the best logistics expertise based on the sequenced and just-in-time delivery requirements of the plant’s automotive customers.”
The transfer of production has made German plant production lines readily available for increased European business, while also saving on shipping costs of product to fulfill North American market demands.
As a key component to this expansion, the new distribution facility will be equipped with sap les (Logistics Execution System), an advanced warehouse management system. The system includes sap-Console functionality to enable wireless data collection transfers via bar code scanning of each box of product. This completely paperless system will lead to increased productivity and reduced order cycle time.
For additional information, call 800/247-9445 or visit www.REHAU.com.
HD Supply on verge of sale to private equity firm
BY MORRIS R. BESCHLOSS
PVF and economic analyst
As The Wholesaler goes to press, we have learned from a reliable source that Home Depot’s HD Supply wholesale distribution arm is on the verge of being acquired by one of two major private equity consortiums.
Our sources indicate that the bids came in at roughly $10 billion, higher than what was originally anticipated. These sources have named a group comprised of Bain Capital LLC, Carlyle Group and Clayton Dubilier & Rice as a prime bidder. Also in the hunt are Thomas H. Lee Partners LP and ccmp Capital Advisors LLC.
It’s expected that final disposition will be announced during the week of June 18. The Bain/Carlyle/CD&R bid is particularly interesting since the latter’s full partner, Charlie Banks, was formerly CEO of Ferguson Inc. and parent company Wolseley Corp. The major part of Banks’ career was spent in the PHCP industry’s distribution sector with Ferguson, a leading revenue and profit generator among U.S.-based PHCP multi-branch wholesalers. If the CD&R triumvirate comes out on top, it will be especially interesting to see if Banks plays a pivotal role in the operations of the new acquisition.
Our Home Depot contact indicated that former CEO Robert Nardelli, who had built HD Supply into a $12-billion annual revenue giant, was committed to further expansion of this approach, to which a growing number of directors objected. Their concern was that the expansion of HD Supply would dilute the company’s massive cash flow and steer its direction away from the retail homemaintenance business. HD Supply had grown to 13% of Home Depot’s total revenues in 2006; this had gotten a major push with the acquisition of PHCP distributor Hughes Supply for $4 billion earlier in the year. It was reported that Nardellli had planned to expand HD Supply to reach 20% of the retailer’s total sales.
Nardelli’s successor, CEO Frank Blake announced in February that Home Depot would consider selling HD Supply.
It is unknown at this point whether the successful private equity partnership acquirers will divest any part of their newly acquired distribution strength.
Members comprising the bidding interest have acquired numerous well-known brands in recent years. New York-based CD&R recently agreed to buy ServiceMaster Co., a home-services company whose brands include ChemLawn, Merry Maids and Terminix. In December 2005, CD&R joined with Washington-based Carlyle to buy Ford Motor Co.’s Hertz rental car unit; they sold Hertz shares to the public less than a year later. Earlier this year, Boston-based Bain, the third member of that group, acquired OSI Restaurant Partners Inc., the operator of Outback Steakhouse. It is also in the process of acquiring Clear Channel Communications Inc.
Within the competing bidding group, Thomas H. Lee Partners is Bain’s partner in the Clear Channel takeover. Boston-based Lee also participated with Carlyle and Bain in the purchase of Dunkin’ Brands Inc., which franchises Dunkin’ Donuts stores. Ccmp is the former buyout arm of JPMorgan Chase.
New Products
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Elegant faucets The Positano line of faucets provides style and elegance to enhance any kitchen and bathroom decor. Positano faucets were designed with quality workmanship and a keen sense of style, while striving to maintain a competitive cost. Ceramic cartridges, solid brass handles and brass waterways combine functional, consistent performance with style. Matco-Norca. |
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Volume control shower valves Moentrol pressure-balancing volume control valves offer updated, consumer-preferred trim for affordable luxury. Three-function shower valve gives users both a showerhead and a handshower or a showerhead and body sprays running at the same time. Features temperature memory so the dial stays in the same temperature position from the last use. Moentrol trim sold separately. Finishes: chrome, LifeShine brushed nickel, oil rubbed bronze and pewter. Moen Inc. |
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Push-in fittings A new line of Speedfit push-in plumbing fittings feature the added security of Twist and Lock technology. Require no tools to make leak-free, reliable pipe connections for faster installation time, even in confined spaces, and are re-usable many times over without compromising the integrity of the connection. Fittings are available in 1/2", 3/4" and 1" CTS sizes in a variety of configurations. John Guest. |
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Water soluble flux S-39 soldering flux is a water soluble/flushable, acid-free, lead-free, self-cleaning flux for all types of tin solder and their alloys. Solders dissimilar metals and older or tarnished copper, without having to brush or sand the surface. Leaves no residue, won’t transfer taste or odor, withstands overheating.J.C. Whitlam Manufacturing Company. |
Movers & Shakers
Johnstone Supply Inc. named Vince Guillory vice president-sales and marketing. Guillory brings extensive knowledge in the refrigeration and HVACR product areas in markets throughout the country. He has a wide range of industry experience at all levels of wholesale distribution as well as industry-relevant manufacturing experience with Emerson Electric, where he was a division director of marketing. His experience includes 15 years in all levels of management, most recently as regional vice president of HD Supply. |
Steven Rodgers was appointed vice president-supply chain operations for Sloan Valve Company. Rodgers has a history of leading global operations, technology integration and business development initiatives. He has a solid reputation for strategic design and operational execution of supply chain networks and an ability to resolve issues that impact global channel operations. |
Watts Water Technologies Inc. announced that Mike Gaughan has rejoined Watts as the Western regional manager-Automatic Control Valve Group. Gaughan has more than 29 years experience working with pipe, valves, fittings, and instrumentation in the water, plumbing and industrial markets. In his new position, Gaughan will be responsible for further strengthening Watts’ relationships with regional wholesale customers, engineers and municipalities while assisting in the development and implementation of long term sales initiatives. He will be based out of Southern California and will cover the Western U.S. |