HDW buys ‘Handy Hardware’
Hardware Distribution Warehouses Inc. has acquired the retail distribution business of World and Main LLC’s Houston division, formerly known as Handy Hardware.
Financial terms weren’t disclosed.
Employee-owned Hardware Distribution Warehouses Inc., based in Shreveport, Louisiana, provides inventory and retail services to lumberyards, hardware stores and farm/ranch retailers.
Kenny Beauvais, CEO and President of Hardware Distribution Warehouses Inc. (HDW) , said, “We are excited to add important geography to our distribution network that will allow us to serve 2,000 retail locations. This will also add experienced talent to our employee-owned company that will strengthen our position in the marketplace and our offerings to our retailers.”
The acquisition expands HDW’s business further into Texas and Oklahoma and adds approximately 13,000 products to the company’s offerings.
HDW Vice President of Corporate Communications Jimmy Horne said World and Main customers will receive the same type of service as in the past and HDW customers will benefit from broader product selection and inventory.
Hardware Distribution Warehouses operates distribution centers in Greenwood, Mississippi, and Shreveport, Louisiana. The acquisition adds 400,000 square feet of warehouse space from the World and Main Houston division distribution center in Houston.
HDW serves retailers in nine states — Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Oklahoma, Tennessee and Texas — and is a member/owner of Distribution America, which describes itself as the nation’s largest network of independent hardware and paint sundries wholesale distributors.
At World and Main headquarters in Cranbury, New Jersey, the sale marks the end of strategic review of the Handy Hardware business.
"This divestiture is consistent with our focus on growing our core businesses and executing on our long-term strategic plan” said Bryan Yeazel, president and CEO of World and Main. “Handy Hardware has a strong team with a business model that is highly complementary to HDW’s. We are grateful to our Handy team for their tireless work and wish them the best for a smooth transition.”
The move allows World and Main to focus energy and capital on its strategic growth plan, he said. "This transaction will amplify World and Main’s capabilities, allowing us to be a better partner with our customers," Yeazel said. "We look forward to serving our customers across our broad product offering in the home, hardware, and building supply categories.”
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[The above article has been revised to include comments from World and Main LLC.]
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Distributors look ahead, with an eye on products
Distribution America and PRO Group presented awards during the groups' combined Executive Planning Conference, held in Tucson, Ariz.
Best New Product Awards
• Hand & Power Tools – CLC Custom Leathercraft – DeWALT Pocket Lighted USB Charging Tool Backpack
• Hardware – Master Lock Co. – Bluetooth Padlock
• Paint Sundries – DAP DynaGrip Heavy Duty Max Construction Adhesive
• Plumbing – Delta Faucet – Elongated Night Light Toilet Seat
• Electrical – Promier Products – Wireless Light Switch
• Lawn & Garden/Pet – The Ames Companies – Multi-Purpose Garden Rake
• Housewares/Seasonal – World & Main (HBC) 8-In. Utility Blower
• Automotive- Cequent Consumer Products – REESE Ball Mount Boot Brush
• Overall Winner: Swan Products, LLC – Hose Swiver
Distribution America Vendors of the Year
• Specialty Products – Gardner Gibson
• Tools- Apex Tool Group
• Hardware- Midwest Fastener Corp.
• Paint and Paint Sundries – Rustoleum Brands
• Plumbing- Genova Products Inc.
• Electrical- Leviton Manufacturing Co.
• Lawn & Garden- Boss Manufacturing Co.
• Soaring Eagle Vendor Partnership Award- Rustoleum Brands
PRO Group, Inc. Key Suppliers of the Year:
• Plumbing – Genova Products, Inc.
• Electrical – Southwire
• Hardware – Master Lock Company
• Seasonal – Seymour Midwest
• Tools – Custom LeatherCraft Mfg. Co.
• Paint Sundries – Rust-Oleum
• Overall – Chapin International
The 3-day EPC event ended Nov. 16, and included more than 2,000 face-to-face meetings, a scramble golf tournament and a reception themed “What’s in Store for You?” sponsored by the National Hardware Show with raffle drawings and giveaways. The conference also featured a popular feature item display area. Distributor attendees selected the best new products and presented awards to the manufacturers in the major hardline categories.
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Ace’s sales miss in Q3
Ace Hardware Corporation reported a sales miss in the third quarter — even if the co-op wasn't expecting to match its impressive results in the prior-year quarter.
“Our expectation for the third quarter of this year was modest sales growth and lower net income as a result of last year’s strong 13.2% consolidated revenue growth and 45.3% net income growth,” said John Venhuizen, president and CEO. “We missed on sales in our Ace domestic business, but exceeded our net income budget.”
"The sales miss was largely driven by last year’s sell-in of LED lights and the lowering of wholesale selling prices to our retailers," he added. "For our shareholders, these wholesale price reductions were positive as over three-quarters of our wholesale price changes were decreases, resulting in less margin for the corporation, but more margin for our retailers.”
Total revenue for the quarter was $1.2 billion, a decrease of 3.6% from the previous year. Decreases were noted across several departments with electrical, paint and plumbing showing the largest declines.
Meanwhile, net income of $50.2 million was down by $4.1 million from the year-ago quarter.
Retail same-store sales moved the needle at an increase of 0.8%, however, riding on the back of a 2.2% increase in average transaction size.
Ace added 36 new domestic stores in the third quarter of 2016 and cancelled 16 stores, with total domestic store count now at 4,335. That's an increase of 60 stores from the third quarter of 2015.
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ACE North Dakota should never
ACE North Dakota should never have complied with the Sheriff's dept agenda of refusing heating supplies to the Standing Rock group of grownups with kids. That wasn't business or law, it was a threat to life and safety as a lever to pursue an oil-company's corporate goal. I used to have a lot of admiration for ACE and their member dealers. Still time to publicly reverse a bad decision!