Interline Brands

Interline Brands, Inc.
Subsidiary of The Home Depot
Industry Wholesale/Distribution (business)/Retail
Predecessor Wilmar Industries
Barnett, Inc.
Founded 2000
Headquarters Jacksonville, Florida, USA
Area served
 United States, Canada, United States Virgin Islands, Puerto Rico
Key people
 Kenneth Sweder
(CEO)
Federico Pensotti
(CFO)
Michael Agliata
(Vice President)
Products plumbing, electrical, security hardware, HVAC, janitorial & sanitary products
Revenue $1.4 billion (2013)
Number of employees
 4,300
Parent The Home Depot
Website www.interlinebrands.com

Interline Brands, Inc., headquartered in Jacksonville, Florida, is one of the largest wholesale distributors and direct marketers of maintenance, repair and operations (MRO) products for non-industrial businesses in the United States. Interline Brands distributes a broad range of products such as HVAC, janitorial supplies, plumbing supplies and security supplies.

Interline Brands was established when Wilmar merged with Barnett, including their acquisitions, in 2000 forming an umbrella company called Interline Brands. Gradually Interline Brands diversified their customer base through the acquisitions of propane supplier Leran Gas Products and janitorial supply distributors AmSan and JanPak. In 2015 Interline Brands merged five of its janitorial brands into one unified brand called SupplyWorks.[1][2][3] On July 22, 2015 The Home Depot acquired Interline Brands for $1.6 billion.[4]

History

JanPak distribution center

The origin of Interline Brands first began with Wilmar Supply Co in 1978. Wilmar was a hardware store in Collingswood, New Jersey founded by Martin Green and his son William Green.[5] To expand it's business beyond retail it began selling MRO products to area apartment complexes and then expanded geographically by distributing to multi-family housing businesses. Wilmar went public in 1996 and purchased 14 regional competing businesses before acquiring the Sexauer Group, a well-known and established distributor, in 1999. A leveraged buyout in May, 2000 took the company private in preparation for the next stage of growth.[6] Wilmar approached Barnett, Inc. about merging because the two businesses were very similar, but each targeted a different customer base. Wilmar's customers performed facility maintenance, while Barnett sold to locksmiths, retail hardware and contractors. The two joined in September 2000 and named the umbrella company, Interline Brands.[7] Their guiding principle was to "change as little as possible about the way our customers currently do business with us".[8] Each of the businesses (including Sexauer) retained their identity from the customer's point of view, including salesmen, telephone numbers, products, etc. They realized the value of each company's brand, and preserved sales/marketing relationships built over the years. What did change was behind the scenes in accounting, distribution and administration, realizing economies of scale. In 2000, Interline had a total of 76 distribution centers, which they were able to shrink to 56 in 2004. A 319,000 sq ft (29,600 m2) national distribution center in Nashville, Tennessee was opened in 2001, reducing the inventory required at the local distribution centers and improving delivery times.[7] In late 2004 Interline went public as NYSE:IBI but was later delisted in September 2012 to become privatized.[8][9]

To further expand the business of Interline the firm acquired several distributors of cleaning supplies. It first acquired American Sanitary or AmSan in May 2006 for $127.5 million.[10] Cleansource, a regional distributor of JanSan products, was acquired in October 2010 for $60.1 million.[11] A regional supplier of cleaning and packaging solutions called JanPak was acquired in 2012 for $82 million.[12] On March 16, 2015 Interline merged AmSan, CleanSource, JanPak, Trayco, and Sexauer into a new national brand called SupplyWorks.[13] AF Lighting was also sold to Almo Corporation in March 2015 because lighting was a minimal part of the business of Interline Brands.[14] The Home Depot acquired Interline Brands in July 2015 for $1.6 billion from P2 Capital Partners, Goldman Sachs' private equity arm, and the management of Interline Brands.[4] In January 2016 Michael Grebe retired leaving Kenneth Sweder as the new CEO.[15]

Operations

Interline Brands distribution center and a Pro Center.

The company staffs 30 showrooms throughout North America with 70 strategically placed distribution centers stocking over 30,000 products under 10 brand labels.[2] Its customer base includes:

This company has spies who constantly watch any wiki edits The Interline companies offer plumbing, electrical, HVAC, security hardware and janitorial products, but nearly half of Interline's sales are plumbing products. Their goal is to provide premium products at competitive prices with same or next-day delivery. "Get It Right. Get It Now." is the company slogan. Products are sold using multiple channels: direct sales by national account representatives or field representatives, telephone sales, customer service representatives, direct marketing through flyers & catalogs, "pro centers", vendor managed inventory, and Internet-based service.[16] Most Interline Distribution Centers include a customer center for over-the-counter sales which Barnett customers prefer. In markets with a sizeable customer base but no distribution center, Interline would look for an existing single-location supply house that could be purchased and turned into a "pro center"—a small contractor showroom and pickup facility that stocks high turnover items.[7] Next day delivery is shipped using Interline Brands delivery trucks. Third party carriers such as UPS and Saia is also used for customers outside of the next day service area. There are also will call or pick up locations at most Interline Brands locations. Products can be purchased online or through a sales representative.[17][18][19]

Interline Brands contains eight brand names to serve contractors, specialty distributors, housing maintenance and janitorial needs. The products from these brands are stored in distribution centers and contractor showrooms in the United States, Canada, and Puerto Rico.[20]

Interline Brands delivery truck.
Brands of Interline Brands
Wilmar
Barnett
Maintenance USA
Hardware Express
US Lock
Copperfield
Leran Gas Products
SupplyWorks
Eagle Maintenance Supply[21]
Northern Colorado Paper[22]

Exclusive Products

Interline Brands has 10 exclusive brand products

Wilmar

Wilmar delivery truck.

Wilmar Supply Company was founded in 1978 by William Green and Martin Green in Collingswood, New Jersey as a hardware store. Wilmar expanded its retail business by selling MRO products to apartment complexes and multi-family housing.[23][24] In the 1980s William Green became CEO of Wilmar and in 1993 William bought out Martin's interests in Wilmar. The annual revenues of Wilmar escalated from $24.52 million in 1993 to $100.64 million in 1997. In the same year The Pier-Angeli Group, Lindley Plumbing and Supply Company and Management Supply Company was acquired by Wilmar as part of its strategy of expanding to new markets through the fragmented industry. On January 24, 1999 Wilmar went public and raise over $47 million.[25] Wilmar expanded into the institutional and lodging facilities by acquiring Sexauer and Trayco in December 1999 for $85 million.[26] Wilmar also acquired Ace Maintenance Mart USA, Inc. in 1999. On January 24, 1999 Wilmar went public as (NASDAQ:WLMR) and raise over $47 million.[27] Wilmar expanded into the institutional and lodging facilities by acquiring Sexauer and Trayco in December 1999 for $85 million. Wilmar went private in May 2000 by investment groups that include Parthenon Capital, CCMP Capital, Sterling Investment Partners, BancBoston Capital and Svoboda Capital, LLC. William Green still retained the position of CEO William Green.[28][29] In 2000 Wilmar, based in Moorestown, New Jersey, purchased Barnett, Inc. for $214 million.[30] Wilmar and its acquisitions became an umbrella company under the name Interline Brands in 2001.[31] Michael J. Grebe became CEO of Wilmar in October 1999 and continued to be CEO when Interline Brands formed. After Wilmar and Barnett merged the two companies began a program of integrating operations into streamlining the distribution operations. The logo of Interline Brands is colored after Wilmar with red, black and white.[32]

Maintenance USA

Maintenance USA is a low price supplier of maintenance, repair and operations products. It was founded in 1974 as Ace Maintenance Mart USA in San Diego, California and acquired by Wilmar in 1999.[33][34][35]

Barnett

Barnett delivery truck.
Copper elbows are part of Barnett's products.

Barnett was established in 1958 as Barnett Tube Fitting and Valve Company by the Leonard Barnett family. The initial purpose of Barnett was to supply copper tubing to customers through its catalog. In 1972 Barnett changed to Barnett Brass & Copper.[36] Barnett was acquired by Waxman Industries for $12.5 million giving Barnett access to the mail-order market. Waxman Industries formed Barnett, Inc. in 1993 and two years later it reached $100 million in sales.

US Lock key blanks.

In April 1996 Barnett went public and completed its IPO.[37] Leran Gas Products was acquired by Barnett from Waxman Industries. In November 1997 Forbes ranked Barnett as 60th of the Top 200 Best Small Companies in America. By the end of 1997 Barnett had mailed over 4.5 million flyers for its new 1,800 products. The result of the mailings added 38,000 new customers. In 1998 Barnett, Inc. acquired U.S. Lock from Waxman Industries, Inc. for $33 million. Barnett established its headquarters in the LaVilla neighborhood in downtown Jacksonville, Florida in May 1998.[38] By the end of 1998 Barnett also acquired U.S. Lock from Waxman Industries for $33 million.[39] Waxman Industries, which owned 44% of Barnett, underwent a plan of financial restructuring that included the sale of its Barnett stock by December 2000. With Barnett now private the New Jersey company Wilmar Industries acquired Barnett in 2000 for $214 million due to its similar operations.[31][40] In July 2015 The Home Depot acquired Interline Brands for $1.6 billion.[41]

Barnett of the Caribbean distributes to the Caribbean market of Barnett. It is located in Bayamon, Puerto Rico.[42]

U.S. Lock

U.S. Lock has a wide variety of security locks and accessories from padlocks to door handles. The five national distribution centers for U.S. Lock are located in Brentwood, San Bernardino, Louisville, Charlotte and Jacksonville. U.S. Lock first began as Lawrence Locksmith Supply Corporation in 1974 in Rockville Centre, New York. In 1988 it was acquired by Waxman Industries, Inc. and renamed U.S. Lock.[43] In 1998 Barnett, Inc. acquired U.S. Lock from Waxman Industries, Inc. for $33 million.[44]

Leran Gas Products

Leran Gas Products was established in 1958 as a business-to-business distributor of propane gas products to the liquefied petroleum gas industry of the United States. It is the only national distributor of propane gas products. Barnett acquired Leran Gas Products in 1997.[45]

Hardware Express

Hardware Express is a supplier for hardware retailers and wholesalers.[46]

SupplyWorks

SupplyWorks delivery truck.

SupplyWorks is the result of five previous brands acquired overtime by Interline Brands and merged into one unified brand. The rebranding makes SupplyWorks easier to grow under one brand instead of multiple brands.[47] President & COO Kenneth Sweder says on the creation of SupplyWorks, "The launch of SupplyWorks punctuates the growth strategy we've been pursuing to build a leading share position in the highly fragmented institutional facilities maintenance end market. Supply stands for products and the Works represents everything the products do for the customer.[48]

SupplyWorks has over 68 distribution centers throughout the United States along with 100 delivery vehicles. Next day delivery is shipped using Supplyworks delivery trucks. Third party carriers such as UPS is also used for customers outside of the next day service area. There are also will call or pick up locations at most Supplyworks locations. The customer base of SupplyWorks is property management, conctractors, health care and educational facitilies. Products can be purchased online or through a sales representative.[17][18][19] The products of SupplyWorks consists of a variety of cleaning solutions and janitorial supplies. There are over 3,000 brand supply partners of SupplyWorks such as Georgia-Pacific, 3M, Diversey, Kimberly-Clark and Spartan.[49][50]

Sexauer

The oldest brand of this merger is Sexauer. J.A. Sexauer Manufacturing Company or Sexauer was founded in 1921 as a specialty plumbing repair parts manufacturer and distributor. Trayco was founded in 1993 in Florence, South Carolina. Trayco distributes plumbing supplies, light fixtures, and maintenace parts to wholesale retailers or housing units.[51] In 2000 the newly formed MRO distributor Interline Brands purchased Sexauer to further expand their similar customer base.[52]

AmSan

AmSan Renown soap dispenser.

Interline Brands expanded into the janitorial business by acquiring AmSan in 2006 for $127.5 million. AmSan, an acronym for American Sanitary, was founded in 1987 in Deerfield, Illinois and supplied over 40,000 products to mainly institutional facilities such as health care or professional cleaning contractors.[53] In November 2010 Interline Brands expanded more into the janitorial business by acquiring CleanSource for $60.1 million.[54]

Trayco

Trayco was founded in 1993 in Florence, South Carolina. Trayco distributes plumbing supplies, light fixtures, and maintenace parts to wholesale retailers or housing units.[51]

CleanSource

CleanSource is a regional sanitary distributed from San Jose, California. The customer base of CleanSource consisted of healthcare facilities and educational institutions.[55]

JanPak

JanPak was founded in 1945 as Paper Supply Company in Bluefield, West Virginia. It is a distributor of janitorial and sanitation or "JanSan" supplies to regional customers. Before 2000 JanPak facilities went by a variety of different names through its sister branches such as Charlotte Paper Company in Charlotte, North Carolina or Greenville Paper Company in Greenville, South Carolina.[56] The customer base of JanPak consists of property management, educational facilities and health care. There are 17 JanPak distribution centers throughout the Southeast United States. In 2012 JanPak reached $232 million in sales and around $2.2 million net income.[57] The headquarters of JanPak is located in Davidson, North Carolina.[58][59]

References

  1. ↑ Funk, Dale: "Interline Brands Files for IPO" Electrical Wholesaling, July 1, 2004
  2. 1 2 "Interline Brands, Inc." Hoovers Business Intelligence, Company overview
  3. ↑ "Company Profile". Interline Brands. Interline Brands. Retrieved June 24, 2015.
  4. 1 2 Bray, Chad (July 22, 2015). "Home Depot to Buy Interline Brands for $1.6 Billion in Cash". New York Times. Retrieved July 22, 2015.
  5. ↑ "William S. Green". Philadelphia Business Journal. September 29, 1997. Retrieved November 13, 2015.
  6. ↑ "Wilmar Industries completes Acquisition of Barnett Inc.". Svoboda. Retrieved November 13, 2015.
  7. 1 2 3 Olsztynski, Jim: "Interline Brands’ Unique Vision" Supply House Times, May 4, 2004
  8. 1 2 "History" Interline Brands, About Us
  9. ↑ "Interline Brands, Inc." Interline Brands, Inc. Stockholders Approve Adoption of Merger Agreement, August 28, 012
  10. ↑ "Interline Brands, Inc. Expands into the $23 Billion Sanitary Supplies Market With the Acquisition of American Sanitary (AmSan)".
  11. ↑ "Interline Brands, Inc. Announces Acquisition of CleanSource". October 29, 2010. Retrieved March 17, 2015.
  12. ↑ Clinton, Michael (December 4, 2012). "Interline Brands buys JanPak for $82 million". BizJournals. Retrieved March 17, 2015.
  13. ↑ Cela, Lev (March 15, 2015). "Interline Brands Launches SupplyWorks - Merges Five Brands Into One". Yahoo Finance. Retrieved March 17, 2015.
  14. ↑ Longo, Linda. "AF Lighting Under New Ownership, Relocates to Philadelphia". Enlightenmentmag. A Bravo Integrated Media Design. Retrieved July 18, 2015.
  15. ↑ Werley, Jensen (December 21, 2015). "Exclusive: What comes next for Interline Brands?". Jacksonville Business Journal. Retrieved 1 April 2016.
  16. ↑ "Interline Brands Inc. (IBI)" Yahoo Finance
  17. 1 2 "JanPak Inc. Announces Plans to Expand Operations in Lexington County". Lexington County. Retrieved 27 January 2016.
  18. 1 2 "SupplyWorks – Smarter Maintenance Solutions". supplyworks.com. supplyworks. Retrieved September 4, 2015.
  19. 1 2 "SupplyWorks Smarter Maintenance Solutions". uscommunities.org. US Communities. Retrieved 25 March 2016.
  20. ↑ "Company Profile". Interline Brands. Interline Brands. Retrieved June 27, 2015.
  21. ↑ "Interline Brands Acquires Eagle Maintenance Supply". mdm.com. MDM. Retrieved October 12, 2015.
  22. ↑ "Northern Colorado Paper purchased by Interline Brands". bizwest.com. February 1, 2011. Retrieved October 12, 2015.
  23. ↑ "William S. Green – Wilmar Industries Inc (wlmr)". The Wall Street Transcript. November 17, 1999. Retrieved 29 April 2016.
  24. ↑ "About Wilmar". ziprecruiter.com. Zip Recruiter. Retrieved 7 January 2016.
  25. ↑ "William S. Green". Philadelphia Business Journal. September 29, 1997. Retrieved 3 February 2016.
  26. ↑ "Wilmar acquires Sexauer for $85M". Philadelphia Business Journal. December 7, 1999. Retrieved 3 February 2016.
  27. ↑ "Wilmar Completes Buy-Back Program; CEO William Green Suspends Selling Program.". Business Wire. June 2, 1999. Retrieved 21 March 2016.
  28. ↑ "Investor Group Completes Acquisition of Wilmar Industries" (PDF). Sterling Investment Partners. May 2000. Retrieved 29 April 2016.
  29. ↑ "Interline plans to grow internally and through acquisitions". Jacksonville Business Journal. March 28, 2005. Retrieved 21 March 2016.
  30. ↑ "COMPANY NEWS; WILMAR INDUSTRIES TO ACQUIRE HARDWARE DISTRIBUTOR". The New York Times. July 11, 2000. Retrieved 21 March 2016.
  31. 1 2 Basch, Mark (August 14, 2003). "Getting to know them". Florida Times-Union. Retrieved 11 January 2016.
  32. ↑ "Company Overview of Interline Brands Inc.". Bloomberg. Bloomberg. Retrieved 22 March 2016.
  33. ↑ "Interline Brands, Inc.". getfilings.com. Retrieved 7 February 2016.
  34. ↑ "Ace Maintenance Mart USA". Dun & Bradstreet. Retrieved 7 February 2016.
  35. ↑ "Maintenance USA". e-musa.com. Maintenance USA. Retrieved 8 January 2016.
  36. ↑ "Company Overview of Barnett Brass & Copper Inc.". Bloomberg.com. Bloomberg Business. Retrieved 7 January 2016.
  37. ↑ "A spinoff to success". Forbes. November 3, 1997. Retrieved 22 March 2016.
  38. ↑ Mathis, Karen (January 13, 2000). "Barnett Inc. plans second building, next to headquarters". The Florida Times-Union. Retrieved 22 March 2016.
  39. ↑ "Barnett Inc.". company-histories.com. Company-Histories.
  40. ↑ "Waxman Hopes to Ease Debt with Barnett Stock Offering,". Plain Dealer. February 7, 1996.
  41. ↑ Gibbons, Timothy (July 22, 2015). "Interline's distribution network — and rise of renters — key to Home Depot's acquisition of company". Jacksonville Business Journal. Retrieved 22 March 2016.
  42. ↑ "Barnett of the Caribbean". puertoricoindex.com. PR Index. Retrieved 14 January 2016.
  43. ↑ "Waxman Industries reports earnings for Qtr to March 31". New York Times. May 5, 1988. Retrieved September 13, 2015.
  44. ↑ "Barnett plans to buy U.S. Lock's assets". Jacksonville Business Journal. December 16, 1998. Retrieved 19 March 2016.
  45. ↑ "Leran Gas Products". npgapropanemarketplace.com. NPGA Propnae Marketplace. Retrieved November 10, 2015.
  46. ↑ "About Us". Hardwareexpress. Hardware Express. Retrieved 8 January 2016.
  47. ↑ Werley, Jensen (March 17, 2015). "Interline Brands debuts SupplyWorks at EverBank Field (Video)". Jacksonville Business Journal. Retrieved November 30, 2015.
  48. ↑ "AmSan is Now SupplyWorks – A New National Brand". Strictly Business Magazine. June 1, 2015. Retrieved November 25, 2015.
  49. ↑ Botelho, Stefanie (November 25, 2015). "Interline Brands launches SupplyWorks, merges five brands into one". University Business. Retrieved November 25, 2015.
  50. ↑ "Interline Launches SupplyWorks, National MRO Products Distribution Brand". TradePress. March 31, 2015. Retrieved 22 March 2016.
  51. 1 2 "Trayco". trayco.hub.biz. Hubbiz. Retrieved November 16, 2015.
  52. ↑ "Sexauer, Ltd.". cawebdir.com. cawebdir. Retrieved September 4, 2015.
  53. ↑ "Interline to acquire American Sanitary for $127.5M". Jacksonville Business Journal. Retrieved September 4, 2015.
  54. ↑ "Interline Brands Inc. Announces Acquisition of CleanSource". GlobeNewsWire. Retrieved September 4, 2015.
  55. ↑ "Interline Brands Acquires CleanSource for $60.1M". Modern Distribution Management. October 29, 2010. Retrieved 2 March 2016.
  56. ↑ "Paper Supply Co. changes its name to JanPak Inc.". Triad Business Journal. October 10, 2000. Retrieved 28 January 2016.
  57. ↑ "Interline Brands Acquires JanPak". Industrial Distribution. December 5, 2012. Retrieved November 7, 2015.
  58. ↑ "Interline Brands CFO to step down, Company also agrees to buy JanPak Inc.". Jax Daily Record. December 5, 2012. Retrieved October 19, 2015.
  59. ↑ "JanPak". makersrow.com. Maker's Row. Retrieved October 19, 2015.

External links

This article is issued from Wikipedia - version of the Tuesday, May 03, 2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.