Hughes Supply Inc., Orlando, has agreed to buy TVESCO Inc., a Memphis, Tenn.-based distributor of electric utility and electrical products.
TVESCO (Tennessee Valley Electric Supply Co.) distributes utility supplies and commercial and industrial electrical products to municipal utilities, electric cooperatives and contractor customers through 14 branches in five southeastern states. TVESCO had annual sales of approximately $138 million for the 12 months ended Dec. 31, 2004, and employs 170 full-time associates. The company ranked No. 38 on Electrical Wholesaling's 2005 Top 200 listing. Hughes Supply is ranked No. 8 on that listing.
Tom Morgan, president and CEO of Hughes Supply, said, “We believe serving the utility industry is an excellent business with very good long-term growth prospects as utility companies, in efforts to increase efficiency and productivity, are increasingly outsourcing their inventory management and procurement services to distributors.”
In addition, Morgan said he expects a higher level of maintenance spending by utility companies with the recent passage of the energy bill by Congress. This legislation requires electric utilities to meet federal reliability standards for the electricity grid. He expects Hughes' utility-related business to account for more than $900 million in sales by 2007.