WAYNE, Pa. — In a move that is expected to positively affect the future of independent electrical distribution, AD and IMARK Electrical on Tuesday announced their intent to merge.
The AD board of directors and the IMARK Electrical boards of directors jointly announced that after many months of confidential discussions and extensive due diligence, both boards have unanimously voted to merge IMARK Electrical and AD. The transaction is subject to IMARK Electrical shareholder approval, among other things, and is expected to close later this year.
This merger of equals within the U.S. electrical industry brings together two member-owned groups consisting of 725 independent electrical distributors in the U.S. The new entity will be a division within AD called, "The Independent Electrical Supply Division, U.S." (IESD) and will be part of the overall AD community of 1,410 independents spanning nine construction and industrial verticals and 14 divisions within the U.S., Canada and Mexico.
The merger is centered on the electrical channel in the U.S. and does not include IMARK Canada, IMARK Plumbing or IMARK Group, each of which are separate legal entities from IMARK Electrical.
Speaking on behalf of the AD board of directors, Paul Kennedy, the CEO of DSG, commented, “We believe this merger will significantly strengthen AD and IMARK’s electrical members and partners in the United States. It will bring together the best in both organizations’ programs and services, and provide a valuable and effective hedge against consolidation.”
John Thompson, IMARK Electrical board chairman and the CEO of First Electric Supply, said, “In addition to creating an even stronger future for Independent electrical distributors, this merger will eliminate significant redundancies for our supplier partners currently working with two separate groups, and will create exciting new opportunities for growth, efficiencies and best practice sharing.”
Don Slominski, AD board member and executive chairman of McNaughton-McKay, added, “Both organizations have a rich history of supporting independents in this industry. Coming together represents a powerful opportunity for us to further strengthen a channel that suppliers, manufacturer representatives, and customers highly value.”
Steve Helle, former IMARK board chairman and CEO of Granite City Electric, said, “AD’s transition to member-ownership in 2018 opened the door for this possibility. I salute the IMARK Electrical board and the special committee that worked out all the details that enabled this to happen.”
A special committee comprised of members from both boards worked diligently to provide strategic direction and thought leadership throughout the process. Thanks to John Thompson, CEO of First Electric Supply; Scott Teerlinck, president and CEO of Crescent Electric Supply; Sheila Hernandez, VP of marketing and supplier relations at Summit Electric Supply; Paul Kennedy, CEO of DSG; Don Slominski, executive chairman of McNaughton-McKay; John Eggleton, president and CEO of Kirby Risk; and David White, former chairman and CEO of Border States, for the countless hours committed to this important work.
“The vision, focus and collaboration of our boards, the special committee, and the support they received from both our staffs has been outstanding — Bob Smith and Marisol Fernandez, particularly; they’re all-stars," said AD Chairman and CEO Bill Weisberg. "Combining our teams and our members within a united group paves the way for multi-generational success for independents.”
George Vorwick, former IMARK board chairman and CEO of United Electric Supply, commented, “The future is bright for independents in the electrical industry. Many of us are already friends so we are excited about working together and formally leveraging the power of best practice exchange and new ideas.”
