Grabbing a share of one of the hottest residential construction markets in the U.S., GE Supply, Shelton, Conn., has purchased Cashway Electric Supply Co., Denver, Colo. Terms of the deal were not disclosed.
"Cashway Electric Supply is a complementary fit for us," says Bill Meddaugh, president of GE Supply. "They have an outstanding tradition of serving the residential sector in the Denver area, while our GE Supply Denver branch focuses on major industrial and commercial customers. This acquisition reflects our commitment to bring the best possible products and services to every major segment of the electrical market."
Cashway Electric, with annual sales of approximately $22 million and 55 employees, has been in business for more than 30 years.
Cashway Electric's headquarters and three branches around the Denver area will continue to operate under the Cashway Electric Supply name and will be staffed with the same management and sales support personnel. Dick Allard, president of Cashway Electric, has signed an employment agreement to remain with GE Supply for a undisclosed time, he says.
Allard decided to sell when he realized an electrical distributor serving the Denver market needs to have annual sales of about $35 million to $40 million to compete and to continue to be viewed by the factories as a viable entree to the market. Not all manufacturers believe that buying groups are a viable part of the industry, he says, and therefore the pressure is on independent distributors to "still command the penetration of the marketplace."