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Rep News - December 6, 2024 Update
3Q 2024 Business Conditions & Latest Pricing Trends
AD’s merger with IMARK Electrical has officially been consummated along with IMARK Electrical’s formal separation from IMARK Group.
IMARK Electrical Board Chairman John Thompson said in the press release, “IMARK Electrical was instrumental in creating IMARK Group, and the best practice sharing that we experienced there was positive. However, the benefits from merging with AD are enormous. With AD we have best practice implementation plus increased purchasing volume in our core industry; additional growth opportunities for our members who operate in other industries; member ownership; effective governance; and economies of scale. These economies of scale come from being a single group in multiple industries and countries to operate efficiently, and develop and staff innovative programs.”
AD’s 900-plus independent owner/members span 14 divisions in the U.S., Mexico and Canada with annual sales (pre-merger) exceeding $75 billion of electrical, industrial, safety, bearings and power transmission, plumbing, PVF, HVAC, decorative brands and building materials products.
Paul Kennedy, CEO of DSG said in the press release, “This marks a historic moment in the independent electrical channel in North America. This merger of equals will operate as the newly created AD Independent Electrical Supply Division (IESD) representing over 700 independently owned electrical distributors with annual sales over $43 billion. The strategic importance of coming together as one combined entity will
forever shape the future of the independent electrical channel. IESD is now one group, supported by one team of individuals committed to accelerating the growth of the electrical channel.”
A special committee with representatives from the AD and IMARK boards of directors provided strategic direction for the transaction. The committee members were John Thompson, CEO of First Electric Supply; Scott Teerlinck, president and CEO of Crescent Electric Supply; Paul Kennedy, CEO of DSG; Don Slominski, executive chairman of McNaughton-McKay Electric Co.; and David White, former chairman and CEO of Border States.
IESD will be part of AD’s Electrical & Industrial Business Unit, led by Marisol Fernandez, who has been deeply involved in the strategic process with both organizations.
AD welcomes 16 associates from the IMARK Electrical team to AD. Karen Baker, president of the Independent Electrical Supply Division, will lead a team of associates dedicated to the growth and expansion of the channel. Joining Baker from IMARK will be Jerry Knight who will join AD as a senior VP, Supplier Relations and work closely with Steven Guidry, AD’s senior VP, Supplier Relations on all matters and programs supplier facing. Tim Babcock, VP, Member Engagement, will lead a team comprised of Shaker Brock, director, Member Engagement; and Melissa Sealy, a second director, Member Engagement; focused supporting members. Kelly Koch, senior director, Marketing, will join the division and focus on electrical programs. Other key former IMARK associates will also be added to Baker’s team in addition to others throughout Finance and IT.
Bob Smith, former president and CEO of IMARK Electrical, will also join AD as a senior advisor to AD’s executive team as they work through the integration process and bring together two strong organizations.
The newly reconstituted IESD board of directors is comprised of 14 industry leaders represented in equal parts from both groups to provide guidance on strategic matters that impact the division.
These leaders are: John Hanna, president and COO, Fromm Electric and IESD co-board Chair; George Vorwick, president and CEO, United Electric Supply and IESD co-board Chair; John Cady, president, Revere Electric; Michael Doris, president, Mars Electric; Danny Gray, president and CEO, Independent Electric Supply; Steve Helle, president, Granite City Electric Supply; Paul Kennedy, president and CEO, DSG; Craig LaRue, president, Alameda Electrical Distributors; Lura McBride, president and CEO, Van Meter; John Marshall, president and owner, Atlantic Coast Electric Supply; Jason Seger, president and CEO Border States; Jeff Metzler , CEO, Lonestar Electric Supply; Luis Valls, president and Co-CEO, Turtle & Hughes; and Bruce Summerville, president, Inline Electric Supply
Hanna and Vorwick will serve as co-chairs for the this board and help guide staff on integration and governance matters at the Divisional level. The IESD board will provide the necessary and strategic direction as AD reimagines the possibilities, and IESD seeks to accelerate growth that outpaces industry performance.
Siemens to carve out EV business
Siemens plans to carve out its eMobility business. The company bundled its eMobility charging activities in 2018 and subsequently organized it into a separate business unit in 2022.
According to the Siemens press release, the carve out of Siemens eMobility will give the business entrepreneurial freedom to transform into a more agile, focused and efficient market player. Siemens eMobility offers IoT-enabled hardware, software and services for AC and DC charging from 11 kW to 1 megawatt for a broad range of applications. The business has production and R&D sites in Germany, Portugal, the United States, India and the Netherlands.
Kohler Energy rebrands as Rehlko
Kohler Energy, Kohler, WI, officially rebranded under its new corporate name Rehlko. Rehlko will continue operating as an independent enterprise. The company became a stand-alone entity in May 2024 when Platinum Equity completed a transaction with Kohler Co. to establish then-Kohler Energy as a stand-alone business. Platinum Equity is the majority owner of Rehlko with Kohler Co. remaining an investment partner.
“We are embracing our future as an independent company with the new Rehlko brand and celebrating our legacy and our commitment for tackling the most complex energy challenges, and the values that guide everything we do and stand for,” said Brian Melka, Rehlko CEO, in the press release. “Our company’s new name is derived from the six letters of Kohler and reflects the reliability, resolve, reinvention and resilience that have been and will remain the hallmarks of this organization in addressing the ever-evolving distributed energy needs of the marketplace.”
Rehlko will continue to offer a broad portfolio of energy solutions, including power generation, energy storage and renewable energy technologies.
The press release said the company will support this rebranding with a multi-faceted marketing effort to introduce Rehlko across business and trade publications, with the theme “Resilience is Reinvention.”
The company will continue its partnership with two of the Interpublic Group’s (IPG) global communications and branding agencies: the Weber Shandwick Collective and FutureBrand, which have been supporting brand launch and brand design efforts, respectively.
Headquartered in Wisconsin, Rehlko will maintain operations in 100-plus locations around the world.