WESCO announces merger, buyout plans
By Staff -- Industrial Distribution, 1/1/1998
Pittsburgh, PA.-- WESCO Distribution, Inc., announced on Dec. 15 plans to acquire Brown Wholesale Electric Co. Inc., a regional distributor of electrical and industrial equipment based in Los Angeles, Calif., and its intent to merge its New York Metro operations with those of Avon Electrical Supplies, Inc., Hauppauge, N.Y., to form a new WESCO division.Brown Wholesale Electric Co distributes electrical supplies, construction materials and lighting fixtures through nine branch locations in California, Hawaii and Arizona. The company has annual sales of over $85 million. WESCO says the transaction is expected to close in early January.
Patrick M. Swed, vice president of WESCO's industrial/construction group, said, "Brown Wholesale is a strong regional distributor serving local contractors and industrial customers in several key geographic regions."
Founded in 1928, Brown Wholesale is recognized today as a leading distributor of several major electrical brand products including Cutler-Hammer, Siemens, Appleton, Belden, Thomas & Betts and Philips. Brown's operations in California and Hawaii operate under the name Excel Electric Supply. Ross Brown, grandson of founder Louis Brown, became president of the company in 1996 and will continue to be involved in the business as a consultant to WESCO.
The Avon deal is expected to close in early January 1998. The firm has sales of more than $80 million. "Avon and its management have solid reputations and significant name recognition, and there is a strong synergy between our two organizations," says Swed. "We plan to give Avon's management our full support and work with them to capture a greater share of the $2 billion New York Metro market."
WESCO's existing branch operations in Hicksville and Maspeth, N.Y. will be consolidated into the new Avon Division, and the combined operations will provide a full line of electrical products to the construction, commercial, data communications, and international markets.
Avon principals Kenny and Lenny Moskowitz, will have overall responsibility for the new division. "Joining forces with WESCO presents a tremendous opportunity foir growth," said Avon's co-president, Kenny Moskowitz. "Backed by the resources and experience of one of the nation's leading electrical distributors, we are confident that Avon will become an even stronger player in this huge and diverse marketplace," he added.
WESCO Distribution, Inc. is a privately held electrical and industrial distribution company that operates 320 full service branches throughout North America. The firm's 1996 sales of $2.28 billion placed it third in Industrial Distribution's Top 100 survey.
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