June 4, 2024   

AD and IMARK Electrical Announce Merger Plans

2024 05 ad imark electrical merger.jpg

725 independently owned electrical distributors to come together under one buying group umbrella

 

Affiliated Distributors (AD), a member-owned buying and marketing group, and IMARK Electrical, another prominent marketing group of independently owned electrical distributors, have announced their intention to merge. This strategic move is anticipated to have a significant impact on the purchasing dynamics between independent electrical distributors and various electrical and lighting manufacturers throughout the United States.

The merger, which is subject to IMARK Electrical shareholder approval, is expected to close later this year. It will bring together two member-owned groups consisting of 725 independently owned electrical distributors in the U.S.

The new entity, to be called The Independent Electrical Supply Division, U.S. (IESD), will be a division within AD and part of the overall AD community of 1,410 independents spanning nine construction and industrial verticals and fourteen divisions within the U.S., Canada, and Mexico.

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The merger is focused on the electrical channel in the U.S. and does not include IMARK's operations in Canada, plumbing, or IMARK Group, which are separate legal entities.

Paul Kennedy, CEO of DSG and a member of the AD Board of Directors, said the merger is expected to strengthen AD and IMARK's electrical members and partners in the United States, bring together programs and services from both organizations, and provide a hedge against consolidation.

John Thompson, IMARK Electrical Board Chairman and CEO of First Electric Supply, said the merger will eliminate redundancies for supplier partners currently working with two separate groups and create opportunities for growth, efficiencies, and best practice sharing.

A Special Committee comprised of members from both Boards worked to provide strategic direction throughout the process.

The merger has been made possible by AD's transition to member-ownership in 2018, according to Steve Helle, former IMARK Board Chairman and CEO of Granite City Electric.

 

 

 




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