IDG roots run deep with recent acquisitions
By Staff -- Industrial Distribution, 7/1/1998
Newton, Mass.--Al-though Industrial Distribution Group is less than a year old, its roots now run deep.Buford Brothers, Inc., the oldest member of the Industrial Distribution Assn., was one of three companies acquired by IDG early last month. The $40.3 million combined annual revenues of the three companies -- Buford Bros., Knox Industrial Supplies, Inc., and L.D. Supply, Inc. -- brings IDG's annualized revenue to approximately $460 million.
The acquisition of Buford Bros., also the oldest for-profit company in Nashville, Tenn., rounds out IDG's coverage of Tennessee, a hub which centers around the E.C. Blackstone Co.
"Buford and E.C. Blackstone are two very good, old, well-established distributors serving the Memphis and Nashville market areas," says Doug Smith, IDG president and COO. "So IDG now covers the entire state of Tennessee in a very strong way."
"In addition, Buford Bros. has a very old, good reputation in the business and a strong leader in Bill Young," Smith says. "As individuals we like roots about things and clearly a foundation of good roots is a positive thing. In Tennessee, Buford Brothers' longevity certainly has relevant value. But users still say you must perform. It's nice to be old, but it's even better to give the performance that's required to meet users' needs."
Buford Bros., like each of IDG's subsidiaries, expects to benefit from the economies of scale associated with size.
"Our interest lied in being part of a larger organization, which opens up a lot of doors for us in terms of our growth down the road," says Young, president of Buford Bros. "With all the competition in this industry, we were constantly asking ourselves how are we going to fit? How are we going to compete with the MSCs and the Graingers and the larger companies? This obviously answered a lot of those questions for us."
Young says it is a confirmation of IDG's philosophy that established companies like 161-year-old Buford Bros. and 66-year-old Knox Industrial are selling to IDG.
"What it shows is that with what IDG is doing, the purpose is not to take away from the local name or customer base," Young says. "All that remains in place. Part of their philosophy is that profitable, local companies are going to continue to do what they do best. The name Buford Brothers will still be there."
Knox Industrial is a $9.5 million third-generation general-line MRO distributor that will strengthen IDG's base in southern California. L.D. Supply is a $17 million cutting tools supplier that fills a gap in IDG's domestic reach and strengthens the company's foothold in the aerospace industry.
IDG is currently looking for space in Los Angeles to combine the L.A. operations of Knox Industrial Supplies, Slater Industrial Supply and Continental Air Tools, as well as space in which to combine the Nashville operations of Buford Bros. and E.C. Blackstone. I
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