Contractors and Distributors work together, supplying Electrical Connectors

Electrical Trends is a blog focused on the electrical industry and we have referred to it in a couple of our own past blogs.  This week their blog is titled “Another Distributor Acquirer – Another Industrial Competitor” which is about Kaman Industrial Technologies buying Zeller Corporation, an AD distributor in New York state.  We found their perspective very interesting and wanted to share some of the highlights with you.

  • Kaman is a $1.5 Billion industrial distribution company that purchased Minarik in 2010 and Zeller within the last couple of months.  Are there more acquisitions in their future?  Well, in their Q2 2012 investor presentation, Kaman emphasized their commitment to grow through acquisition so……..
  • Zeller is a Schneider Electric ACE distributor (automation & control)……..did Kaman talk with Schneider in advance of the announcement about how this acquisition might be a broader opportunity for both companies?  Might Kaman pursue other electrical distributors, especially those with Schneider’s automation products?  Interesting questions……………
  • So who might their competitors be?
    • Motion Industries also carries electrical supplies – could they expand with the industrially-oriented electrical distributors to more effectively compete against Kaman?
    • Applied Industrial Technologies is another industrial/PT company that carries motors, controls and other electrical lines – might they acquire more electrical distributors to remain competitive?
    • And what about electrical manufacturers?  Will they see Kaman, Motion and Applied Industrial as national chains to authorize?

What do you think of more acquisitions in the electrical distribution industry?  Who benefits from this activity?  Does it affect your business in any way? Please share your thoughts and LIKE our blog.  And as always, thanks for subscribing to EVERYTHING’S CONNECTED.

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