WAYNE, Pa. – AD announced today that the merger with IMARK Electrical has officially been consummated along with IMARK Electricals’ formal separation from IMARK Group.
IMARK Electrical Board Chairman, John Thompson commented, “IMARK Electrical was instrumental in creating IMARK Group; and the best practice sharing that we experienced there was positive. However, the benefits, for us, 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 the economies of scale that come from being a single group in multiple industries and countries to operate efficiently, develop and staff innovative programs, and make the investments needed to keep our members competitive long into the future.”
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 commented, “Today 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 talented team of individuals committed to accelerating the growth of ONE Independent Electrical Channel.
AD and IMARK Electrical announced their intent to merge earlier this year and commissioned a Special Committee with representatives from their respective Boards of Directors. Since that time, members of the Special Committee have worked tirelessly to provide strategic direction for the transaction.
AD’s Chairman and CEO, Bill Weisberg added, “I want to express my deepest gratitude to the AD LLC Board and the IMARK Electrical Board of Directors for their vision and dedication to finding mutually beneficial solutions, and especially to each of the members of the Special Committee who worked closely over so many months to bring together both organizations. 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 Company; and David White, Former Chairman and CEO of Border States, invested countless hours and demonstrated unwavering commitment to this important and transformational work.”
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 will proudly welcome 16 associates of the IMARK Electrical team to the AD family. Karen Baker, President of the Independent Electrical Supply Division, will lead a talented team of associates dedicated to the growth and expansion of the channel. Joining Karen from IMARK will be Jerry Knight who will join AD as a Senior Vice President, Supplier Relations and work closely with Steven Guidry, AD’s Senior Vice President, Supplier Relations on all matters and programs that are supplier facing. Tim Babcock, Vice President, Member Engagement will lead a team comprised of Shaker Brock, Director, Member Engagement, and Melissa Sealy, a second Director, Member Engagement focused supporting our members. Kelly Koch, Senior Director, Marketing will join the Division and focus on Electrical programs. Several other key former IMARK associates will also be added to Karen’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 comprised of 14 Industry leaders represented in equal parts from both groups will provide critical guidance on strategic matters that impact the Division. These leaders will serve on behalf of ALL members:
John Hanna and George Vorwick will serve as Co-Chairs for the newly created 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.
This merger marks AD’s 16th and is the most sizable throughout the organization’s rich history of bringing together the best Independent Distributors under one member owned and governed organization. The merger further strengthens the competitive position of AD members in the marketplace.
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