WESCO sells majority share in Fife Electric
By Staff -- Industrial Distribution, 6/1/1998
Novi, Mich.--In another move to enhance supplier diversity for its customers, WESCO Distribution, Inc. is selling a majority share in Fife Electric Co. to a minority owner in Detroit.Production Dynamics of Detroit, Inc., a distributor of electrical, industrial and safety supplies, is set to become the new owner of Fife, which did nearly $45 million in sales last year and supplies the major automakers. WESCO bought Fife, a 70-year-old distributorship, in 1995 and will retain a 49 percent interest.
WESCO last year launched a supplier diversity program to help its customers meet their purchasing goals with minority- and women-owned suppliers (see ID, May 1998). Automobile manufacturers in particular have led the effort.
Production Dynamics president Douglas Venable, who expects the deal to close by early July, calls it "an unparalleled opportunity." Venable says WESCO was "not only supportive but critical to garnering the required support from customers and vendors. Going forward it's expected that the support of the target company will be extremely beneficial with respect to future growth opportunities and leverage in the market.'' Production Dynamics did $6 million in sales last year.
The acquisition is being reviewed by the Michigan Minority Business Development Council, which promotes minority business enterprises.
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