BlackHawk Industrial acquires Kendeco Tool Crib
Tulsa, Oklahoma — BlackHawk Industrial Distribution, Inc. today announced the acquisition of Kendeco Tool Crib, a leading industrial distributor serving the MRO marketplace. Kendeco, based in St. Cloud, Minnesota is the sixth acquisition of BlackHawk Industrial and follows the acquisitions during the past seventeen months of Oklahoma-based Duncan Industrial, Arkansas based Rogers Industrial, Nebraska based Fuchs Machinery, Illinois based Sanders Tools and Supply and Wisconsin based Tool Service. With the acquisition of Kendeco, BlackHawk expands and strengthens its geographical footprint into the Central region of the U.S. Financial terms of the transaction were not disclosed.
Founded in 1969, Kendeco is one of the premier industrial distributors of cutting tools, abrasives, fluids and engineered product along with a wide variety of MRO supplies serving end user customers primarily in the markets of Minnesota, North Dakota, South Dakota, and Wisconsin. Bill Scheller, CEO of BlackHawk Industrial said: "We are excited to add the talented employees of Kendeco as part of our growing family of operating divisions within BlackHawk Industrial. Kendeco, led by Bob Miller, has a very long history of being a supplier of choice with strong customer and vendor relationships in its local marketplace. We believe that Kendeco will be further enhanced as part of Blackhawk Industrial as a result of additional operating scale, management resources and a broader product offering. We are also excited to share the combined resources of BlackHawk Industrial with the customer and vendor base of Kendeco."
Mr. Scheller also added: "BlackHawk will continue to look for additional U.S. based industrial distributors to acquire as we further build out our business. Kendeco continues to add to our business model in so many ways: local leadership, strong technical and value added selling, focus on engineered products, deep supplier support, and a strong team culture. We believe that as a result of our addition of the entire Kendeco Team and their leading edge Minnesota operation, we will further strengthen and complement our recent acquisitions in Wisconsin and Illinois. Kendeco also offers many services that will be expanded to support the entire BlackHawk Industrial customer base through their ability to reach new markets and their complete comprehensive vending and other inventory management systems"
BlackHawk Industrial will look to Bob Miller to continue to lead the Kendeco Division. Mr. Miller will be a valued member of the BlackHawk Industrial commercial leadership team on a go forward basis. Bob is well respected in our industry and in the local Minnesota marketplace. Mr. Scheller said: "We look to Bob's continued leadership at Kendeco and in his ability to impact the regional marketplace. Bob has been tasked to grow the Kendeco division of Blackhawk Industrial both organically and through future acquisitions in its local marketplace. Our goal is to add additional branches, new sales staff, and to further expand our customer service resources to deepen our penetration in the local markets."
Bob Miller, former President and co-owner of Kendeco said: "The entire Kendeco staff is excited to become the newest member of the expanding BlackHawk Industrial Family. We spent the past 16 months watching Bill Scheller build BlackHawk into a new dynamic distributor in the industrial marketplace. As I looked at the culture and leadership style that BlackHawk has built, we believe it matches the direction we have found successful at Kendeco. In addition,
I strongly believe in the vision and strategy of empowering the local commercial leaders, who intimately know their local marketplaces, customers, and employees.
"As a local distributor, I believe that my vendors, customers and the team at Kendeco will be well served under the support and structure of the BlackHawk Industrial leadership. I am excited to be joining BlackHawk Industrial and adding value in my leadership role."
About BlackHawk Industrial
BlackHawk Industrial Distribution, Inc. was formed by Bill Scheller, former CEO of ORS-Nasco, and Brazos Private Equity Partners, LLC, a leading Dallas-based private equity firm, to implement an active buy-and-build strategy in the highly fragmented, $400 billion industrial distribution market.
Background of Bill Scheller
Bill was most recently CEO of ORS Nasco, one of the largest, pure wholesale distributors of industrial supplies in North America. Bill has held leadership positions for almost 30 years at companies such as Pillsbury, Patterson Companies, as well as ORS Nasco. During nine years at ORS Nasco, Bill provided the overall leadership and direction for the company in North America. ORS Nasco experienced significant revenue and earnings growth, improved operations and working capital efficiency and enhanced its sales and marketing capabilities. These efforts led to the successful sale of ORS Nasco to United Stationers, Inc. in 2007.
About Brazos Private Equity Partners, LLC
Brazos Private Equity Partners, LLC is a Dallas-based private equity firm that manages approximately $1.4 billion of equity capital. Brazos seeks to partner with outstanding management teams and/or families of closely-held middle-market businesses to maximize value. Brazos has been one of the most active middle-market private equity investment firms over the past decade, having completed 55 acquisitions in a broad range of industries including consumer, food and beverage, business and financial services, healthcare, manufacturing / industrial and distribution. Brazos has significant experience acquiring, growing and monetizing distribution businesses. Since 2002, Brazos has invested in four successful distribution companies: ORS Nasco, Inc., Shelter Distribution, Inc., Strategic Equipment and Supply Corporation and Tri-Northern Security Distribution, Inc.
President / CEO
BlackHawk Industrial Distribution, Inc.
5460 South Garnett Road - Suite G
Tulsa, Oklahoma 74146