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In a merger of two major Top 200 regional distribution companies, Border States Electric (BSE), Fargo, ND, said it has reached an agreement to acquire Kriz-Davis Co., Grand Island, NE. Both companies are 100% employee-owned through Employee Stock Ownership Plans (ESOPs). Kriz-Davis Co. and it’s wholly owned subsidiary, Chapman Metering, will join the Border States family on August 28, 2017 (pending regulatory approval).
“Kriz-Davis Co. is a company we have admired for decades. They are a great cultural, geographic and market fit,” said Tammy Miller, CEO at Border States. “We are both 100 percent employee-owned American companies serving the construction, industrial and utility markets. We are wired the same way. As owners, we are wired to deliver solutions, value and a customer-first mindset.”
“Over the years, we have come to know and respect Border States and their leadership. Our two companies share the same values based on doing what’s right for our customers, employee-owners, vendors and communities. Border States also maintains a strong belief in the power of employee-ownership,” said Tim Berry, CEO at Kriz-Davis Co. “By joining with Border States, it only adds to the opportunities for customers, vendors and our employee-owners."
Berry told Electrical Marketing in an email that the companies' similar cultures and their employee ownership were the two biggest factors in Kriz-Davis Co. joining Border States. "We have also each independently served the same customer types in our respective and individual geographies for years," he said. "By bringing our two companies together only expands the value and service levels we will bring to our customers."
He also said that while Kriz-Davis and Border States have very little customer overlap, they do both have branches in several of the same communities in Kansas and Missouri. "Since Border States branches do not compete against each other in the market, we will evaluate options and eventually bring the teams together to bring more resource and value to our customers," he said in the email. Kriz-Davis will eventually move from its Eclipse ERP system to BSE's SAP system. Berry said integration plans are being finalized now, but that he expects to complete the transition by mid-February.
Kriz-Davis Co. has been in business for more than 70 years. With nearly 250 employee-owners, they generate $200 million in annual sales through 19 locations (including Chapman Metering) in Nebraska, Iowa, Kansas, Oklahoma, Texas and Missouri.