A-D hosts rousing annual meeting
Northbrook, Ill. -- In mid-September, Affiliated Distributors held its Plumbing and PVF Division meetings at the Gaylord Texan Hotel in Grapevine, Texas.
The 2006 meeting marked a special milestone in A-D’s history as the group celebrated 25 years of innovation and leadership while serving the independent channel of distribution. More than 600 plumbing and PVF distributor and supplier attendees participated in the meeting, which focused on people, programs and strategies that have enabled A-D to become a market leader in the industries it represents.
The meeting featured outstanding educational sessions on a variety of operational topics of interest to attendees in today’s fast-paced supply chain.
At the Luncheon and Business Meeting, Affiliated Distributors CEO Bill Weisberg gave his annual “State of the Union Keynote” address. An optimistic Weisberg told the audience that A-D’s Plumbing and pvf Divisions are responsible for approximately $6 billion in annual sales transactions, while the new HVAC Division is logging $2.5 billion in sales volume. He went on to note that while A-D continues to grow its array of services, its operational costs have decreased for the 10th straight year. At the same time, A-D has achieved double-digit growth every year for the past 25 years.
“Our strong and sustainable economies of scale allow us to recruit and retain great people,” Weisberg noted. “We are overcoming the challenges of industry consolidation, and have the diversity to weather fluctuations in the economy. A-D continues to invest in new services, programs and great people so our members’ futures will continue to be bright.”
Weisberg summarized the four key lessons he has learned during his tenure at A-D:
- Winners lead and leaders win; never underestimate your ability
- It’s always innovation that drives and sustains growth
- Seize every opportunity to seek out best practices that can make your company or
department better - Surround yourself with great people.
In conclusion, Weisberg commented: “As I look to the future, I see an industry divided. Big companies get the press with their acquisitions; independents get the customers. There is a small army of independents that are professionally managed by people who have a deep commitment to their long-time customers and employees. We’ll continue to attract the best people for profitable, sustainable growth. We stand with independents and we always will.”
Held annually in conjunction with the meeting, the A-D Recognition of Excellence Awards ceremony identifies individual Affiliates and Suppliers who have excelled in marketing, performance and leadership.
Marketing awards were presented in the categories of: Best Annual Planning Process, Best Conversion to an A-D Supplier, and Best Exclusive Promotion. Those programs determined to be the best in each category exemplified this theme. The Service Provider of the Year Award is presented to a company that participates in A-D’s unique Service Provider Program. The prestigious Affiliate of the Year and Supplier of the Year Awards were once again presented in the categories of Performance and Leadership.
The highlight of the ceremony was the MVP Award, presented by Weisberg. This award gives Affiliate companies the chance to recognize their own employees for their leadership and dedication to A-D.
The following companies and individuals were honored during this year’s awards program:
Best Annual Planning Process
PVF Division -- Paramount Supply, Portland, Ore.
Plumbing Division -- Erb Co., Buffalo, N.Y.
Best Conversion to an A-D Supplier
PVF Division -- Harrison Piping Supply Co., Livonia, Mich., and Trerice
Plumbing Division -- Central Supply Co., Indianapolis, and Legend Valve & Fitting
Best A-D Exclusive Promotion
PVF Division -- Ward Manufacturing
Plumbing Division -- Grohe America
Service Provider of the Year
PVF and Plumbing Divisions -- EDIC/Captive Resources
Affiliate of the Year-Performance
PVF Division --Central States Industrial Supply, Omaha
Plumbing Division --Masters Supply, Louisville, Ky.
Affiliate of the Year-Leadership
PVF Division -- Pat Adams, Missouri Kansas Supply, Kansas City, Mo.
Plumbing Division -- Charles Murray, Murray Supply Co., Winston-Salem, N.C.
Supplier of the Year-Performance
PVF Division -- Crane Valve Group & Stockham Valve
Plumbing Division -- Moen Inc.
Supplier of the Year-Leadership
PVF Division -- Phoenix Forge Group
Plumbing Division -- BrassCraft Manufacturing
A-D MVP
PVF Division -- Donna Thompson, All-Tex Pipe & Supply, Dallas
Plumbing Division -- Barry Nitzberg, pace Supply Corp., Santa Rosa, Calif.
Affiliated Distributors is the largest distribution network in North America, comprised of over 360 independent distributor companies doing over $21 billion in sales in the electrical supply, HVAC, industrial supply, plumbing and pvf industries. Discover more about A-D and its mission at http://MyA-D.net.
Arrowhead Brass merges with Champion Irrigation
Los Angeles -- Mercanti Securities llc served as exclusive financial advisor to Arrowhead Brass Products on its merger with Champion Irrigation llc. Arrowhead Brass, a portfolio company of Caltius Equity Partners, is a leading domestic manufacturer of premium rough brass plumbing products and maintains a well-regarded reputation among plumbing wholesalers, contractors and independent sales representatives by producing high-quality, reliable brass plumbing and irrigation valves and related products.
“The merger of Arrowhead Brass and Champion Irrigation combines two well-known brands and will create significant manufacturing and overhead cost savings as well as cross-selling opportunities with plumbing and irrigation customers,” said Randy Bort, managing director of Mercanti.
Michael Morgan, managing director of Caltius, noted, “We have enjoyed working with the Arrowhead team in growing the businesses and the Mercanti team did a terrific job in helping us monetize our investment.”
Champion Irrigation CEO Jim Shearer added, “The company’s reputation for quality and excellent customer service made Arrowhead an attractive partner for Champion. We are very pleased with the merger of these two fine companies and we’re excited about the many opportunities that the merger will provide. We look forward to improving the operations of the combined company while enhancing each brand’s competitive position in both the irrigation and plumbing markets.”
The combined company has been renamed Champion-Arrowhead LLC.
Builders Plumbing & Heating remodels showrooms
Lansing, Mich. -- Offering consumers a luxurious shopping experience while they look for kitchen and bath products, Builders Plumbing and Heating Supply announced the grand opening of its new kohler® Showroom, a gallery presentation of lifestyle suites and new products from Kohler, an industry leader in kitchen and bath design. Featuring working displays and a stunning array of new products, the showroom offers customers the exceptional opportunity to experience the products first-hand prior to purchasing.
Other products featured include Maax, Pearl, Acryline, Ultra, VitrA, Elkay, Blanco, Brizo, Delta, Hansgrohe, Grohe, Lennox Fireplaces, Moen, Showhouse and more. The Ann Arbor, Mich., location also features Kallista products.
Builders Plumbing Supply has been supporting the plumbing industry for 50 years with locations in Ann Arbor, Midland, Traverse City, Grand Rapids and Lansing, Mich. The company’s goal for each location is to supply customers with a showroom that has a large display from top-quality manufacturers, up-to-the-minute design ideas, product manuals and brochures, trained knowledgeable staff and individual appointments to help customers make informed choices and selections.
Castle Group acquired by Wolseley
Newport News, Va. -- In early October, Wolseley announced the purchase of Florida-based Castle Supply Company Inc., CastleNorth Corporation and Lawrence Plumbing Supply Company in a series of transactions. Castle Supply and CastleNorth will operate as a combined entity under the name Castle, a Wolseley Company. Lawrence will operate as Lawrence Plumbing Supply Co., a Wolseley Company.
The acquisition of these companies strengthens Wolseley’s position in this high-growth U.S. market. With 10 locations and nearly 200 employees, Castle Supply is a market leader in the Tampa Bay region. CastleNorth has 10 locations in the central, eastern and northern regions of Florida and more than 125 employees. Lawrence Plumbing Supply has seven locations in the greater Miami region and 77 employees. The combined operations of the three companies generated $196 million in sales for the 12 months ending September 30, 2006.
Bob Cardwell, current president of Castle Supply, will be responsible for the operation of Castle, a Wolseley Company. “We are bringing together the best of the industry leaders,” explained Cardwell. “With our people, customer relationships, market savvy and nimbleness and Wolseley’s buying power, logistics system and proven industry leadership, it will be amazing what we do together to service our customers.”
Joe White, current chairman of Castle Supply, and Bob Stern, current president of CastleNorth, will also remain with the company, as will Joe Lawrence, current president of Lawrence Plumbing Supply. “I am extremely happy for our company’s continued success and the additional opportunities afforded to our associates through this acquisition,” explained Lawrence.
For more information, visit www.ferguson.com.
Schaumburg, Ill. -- The Plumbing Manufacturers Institute is disappointed with the passage of AB 1953 by the California legislature. While the measure’s intent is to make plumbing products safer, PMI asserts that it mandates an arbitrary, redundant and flawed formula to evaluate products that already undergo proven, rigorous testing under a federally-approved certification system.
According to PMI, rather than being grounded in sound science, the bill is based upon a number of misconceptions and discounts the value and use of the performance-based National Sanitation Foundation 61 standard in measuring product safety. Since faucets are already highly regulated and are safe for consumers, PMI believes there is no need for this new California regulation.
As noted by PMI the bill employs an arbitrary and flawed formula to determine lead content in faucets and, despite recent claims to the contrary, no faucets currently manufactured can comply with the requirements of the bill, which is set to go into effect in 2010. While there are lower-lead alloys on the market today -- bismuth as an example -- these materials are used effectively only in simple-to-manufacture products such as water meters. There is no replacement alloy appropriate for the critical, mechanical demands of a faucet.
Most troubling, however, according to PMI, is that the bill contains a massive loophole that is not in the interest of consumers: AB 1953 contains a specific provision that exempts products in the water system, which not only contain the highest levels of lead, but are also the least regulated under the current national testing and certification framework. This leaves many questions open with respect to the aim of the bill as well as with respect to the public’s interest, and PMI looks forward to future and well-informed debate on this issue.
For more information, contact PMI at 847/884-9764.
RAF buys Steamist; former Grohe execs join new ownership
Jenkintown, Pa. -- Steamist Co. Inc., a U.S. market leader in steam bath and sauna equipment, has been acquired by RAF Industries. The announcement was made by Rick Horowitz, RAF president and chief operating officer.
Jeff Noll, formerly president and general manager of Grohe, and Jeff Carney, formerly Grohe vice president-sales and marketing, have both left Grohe to join Steamist with an ownership position. Noll is the new president of Steamist and Carney is the new vice president-sales and marketing.
Steamist’s corporate offices and manufacturing facility are located in Rutherford, N.J. Additionally, the company operates a sales, customer service and warehouse facility in Lancaster, Calif. Steamist has enjoyed a rich 50-year history focused on residential and commercial steam baths and is considered a leader in the industry.
Rick Horowitz noted that RAF had been impressed with Steamist’s impressive history of growth, innovation and unwavering commitment to product quality. “It is a great addition to our portfolio of luxury building products,” Horowitz said.
RAF, based in Jenkintown, Pa., currently owns 18 portfolio companies. According to Noll, the category of residential steam baths has tremendous potential as part of the exploding custom shower market. “Today homeowners have a tremendous and widening array of custom shower designs from which to choose and a steam system fits right in,” Noll said. “It is a great upgrade, whether for a new home or a bath remodel.”
The residential sauna market is also growing, and there is continued growth in institutional markets for commercial steam baths and saunas, he added.
Neil White, former owner and president of Steamist, commented, “I am confident that the company’s acquisition by RAF will help to continue Steamist’s tradition of growth through unmatched product quality, service and customer satisfaction.”
Steamist has a full line of residential steam bath and sauna products and systems, as well as a full commercial line of steambath steam generators, controls and maintenance products. For more information, visit www.steamist.com.
Victaulic buys Nibco interest in NVent
Easton, Pa. -- In late October, piping industry leaders Victaulic Company and Nibco Inc. announced that Victaulic has acquired full ownership of NVent LLC, a joint venture of the two companies located in Allentown, Pa.
Under terms of the agreement, all manufacturing, sales, marketing and distribution efforts will now reside with Victaulic. Nibco will continue to support the business by supplying component parts to NVent used in the manufacture of the PermaLynx product.
NVent manufactures and distributes PermaLynx, a push-to-connect joining system for copper piping that was named “Best of Show” in the Plumbing and Piping category at the 2004 ISH North America trade show.
“We have strong confidence in the PermaLynx product and in the market potential for small diameter mechanical joining systems,” said Victaulic CEO John Malloy. “Both Victaulic and Nibco concluded this business opportunity could best be pursued by one of our two companies. Our acquisition of NVent is an evolution of the original mission of the joint venture to develop innovative small diameter piping solutions. We look forward to working with Nibco as we pursue this opportunity.”
Victaulic is one of the world’s leading manufacturers of mechanical pipe joining systems and Nibco Inc. is a market leader in copper fittings.
Viega opens new North American training facility
Nashua, N.H. -- Viega’s first North American Educational Facility opened September 18 in grand style before a turnout of nearly 350 attendees. Industry partners, city officials and Viega personnel gathered to celebrate the official opening in Nashua, N.H.
Presentations concluding with a ribbon-cutting ceremony and champagne toast began at 11:00 a.m. as Viega executives and the Mayor of Nashua welcomed guests. Joining them were also Viega owners Heinz-Bernd Viegener and Walter Viegener, and general export manager Karl-Heinz Maier.
The impressive 16,000-square-foot Educational Facility, under the direction of Mark Parent, is state-of-the-art. Equipped with a computer lab for plumbing and heating takeoff applications, multiple presentation rooms and an interactive area, the facility showcases the benefits of Viega systems and represents Viega’s extensive knowledge and know-how in the plumbing and heating business.
Dave Garlow, Viega vice president-sales and marketing, commented, “This facility represents many things including a commitment to our North American industry partners, customers, employees and end-users. It also represents Viega’s commitment to being best-in-class in everything we do.”
For additional information on Viega educational programs and/or partner use of this resource call 877-viega-na, or visit www.viega-na.com.
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