Interline Brands

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Interline Brands, Inc.
Private
Industry Wholesale/Distribution (business)/Retail
Predecessor Wilmar Industries
Barnett, Inc.
Founded 2000
Headquarters Jacksonville, Florida, USA
Key people
Michael J. Grebe
(Chairman & CEO)
Federico Pensotti
(CFO)
Kenneth D. Sweder
(President & COO)
Michael Agliata
(Vice President)
Products plumbing, electrical, security hardware, HVAC, janitorial & sanitary products
Revenue $1.4 billion (2013)
Number of employees
4,300
Parent The Home Depot
Website www.interlinebrands.com

Interline Brands, Inc., headquartered in Jacksonville, Florida, is one of the largest wholesale distributors and direct marketers of maintenance, repair and operations (MRO) products for non-industrial businesses in the United States. Interline Brands distributes a broad range of products such as HVAC, janitorial supplies, plumbing supplies and security supplies. Interline Brands was formed in 2000 when two businesses called Wilmar and Barnett merged because they had a similar customer base. Gradually Interline Brands expanded their customer base through the acquisitions of Maintenance USA, US Lock, Hardware Express and Leran Gas Products. In 2015 Interline Brands merged five of its janitorial brands into one unified brand called SupplyWorks.[1][2][3] On July 22, 2015 The Home Depot acquired Interline Brands for $1.6 billion.[4]

History[edit]

Wilmar Industries was a Camden, New Jersey hardware store in 1978 with big aspirations. To grow the business, they began selling MRO products to area apartment complexes, then expanded geographically, becoming a distributor targeting multi-family housing businesses. Wilmar went public in 1996 and purchased 14 regional competing businesses before acquiring the Sexauer Group, a well-known and established distributor, in 1999. A leveraged buyout in May, 2000 took the company private in preparation for the next stage of growth. Wilmar approached Barnett, Inc. about merging because the two businesses were very similar, but each targeted a different customer base. Wilmar's customers performed facility maintenance, while Barnett sold to locksmiths, retail hardware and contractors. The two joined in September 2000 and named the umbrella company, Interline Brands.[5] Their guiding principle was to "change as little as possible about the way our customers currently do business with us".[6] Each of the businesses (including Sexauer) retained their identity from the customer's point of view, including salesmen, telephone numbers, products, etc. They realized the value of each company's brand, and preserved sales/marketing relationships built over the years. What did change was behind the scenes in accounting, distribution and administration, realizing economies of scale. In 2000, Interline had a total of 76 distribution centers, which they were able to shrink to 56 in 2004. A 319,000 sq ft (29,600 m2) national distribution center in Nashville, Tennessee was opened in 2001, reducing the inventory required at the local distribution centers and improving delivery times.[5] In late 2004 Interline went public as NYSE:IBI but was later delisted in September 2012 to become privatized.[6][7]

To further expand the business of Interline the firm acquired several distributors of cleaning supplies. It first acquired American Sanitary or AmSan in May 2006 for $127.5 million.[8] Cleansource, a regional distributor of JanSan products, was acquired in October 2010 for $60.1 million.[9] A regional supplier of cleaning and packaging solutions called JanPak was acquired in 2012 for $82 million.[10] On March 16, 2015 Interline merged AmSan, CleanSource, JanPak, Trayco, and Sexauer into a new national brand called SupplyWorks.[11]

The Home Depot acquired Interline Brands in July 2015 for $1.6 billion from P2 Capital Partners, Goldman Sachs' private equity arm, and the management of Interline Brands.[12]

Products and organization[edit]

Interline Brands delivery truck.

The company staffs 30 showrooms throughout North America with 70 strategically placed distribution centers stocking over 30,000 products under eleven brand labels such as Hardware Express, Maintenance USA, Wilmar, U.S. Lock and Sexauer.[2] Its customer base includes:

  • Facilities maintenance businesses servicing multi-family housing facilities, educational institutions, lodging and healthcare facilities, government properties and building service contractors
  • Professional contractors who repair, remodel and build residential and non-industrial facilities
  • Specialty distributors, including plumbing and hardware retailers.

The Interline companies offer plumbing, electrical, HVAC, security hardware and janitorial products, but nearly half of Interline's sales are plumbing products. Their goal is to provide premium products at competitive prices with same or next-day delivery. "Get It Right. Get It Now." is the company slogan. Products are sold using multiple channels: direct sales by national account representatives or field representatives, telephone sales, customer service representatives, direct marketing through flyers & catalogs, "pro centers", vendor managed inventory, and Internet-based service.[13] Most Interline Distribution Centers include a customer center for over-the-counter sales which Barnett customers prefer. In markets with a sizeable customer base but no distribution center, Interline would look for an existing single-location supply house that could be purchased and turned into a "pro center"—a small contractor showroom and pickup facility that stocks high turnover items.[5]

Brands[edit]

Interline Brands distribution center.

Interline Brands contains eight brand names to serve contractors, specialty distributors, housing maintenance and janitorial needs. The products from these brands are stored in distribution centers and contractor showrooms in the United States, Canada, and Puerto Rico.[14]

Wilmar[edit]

Wilmar is a maintenance supplier of plumbing, janitorial and appliance supplies of MRO to multifamily housing communities.[15]

Barnett[edit]

Barnett is a supplier of plumbing, electrical and HVAC to professional contractors while also functioning as a wholesaler.[16]

Hardware Express[edit]

Hardware Express is a supplier of building supplies for wholesaler and hardware retailers.[17]

Leran Gas Products[edit]

Leran focuses on propane installations and other appliances for propane suppliers.[18]

Maintenance USA[edit]

A single-source provider of MRO products to managers and owners of loding, multifamily and public housing facilities.[19]

US Lock[edit]

A supplier of security products to locksmiths and security professionals.[20]

Copperfield[edit]

The nation's largest full-service distributer of hearth and chimney products.[21]

SupplyWorks[edit]

A supplier of broad-line facility maintenance solutions ranging from plumbing to janitorial products.[22] It was formed by merging AmSan, Sexauer, CleanSource, JanPak, and Trayco into a unified national brand now called SupplyWorks.[23]

The brands of Interline Brands

Former Brands[edit]

AF Lighting was sold to Almo Corporation in March 2015 because lighting was a minimal part of the business of Interline Brands. The janitorial brands AmSan, Cleansource and JanPak no longer exist because they were united into one single brand called SupplyWorks. Sexauer and Trayco also no longer exist as brands because they were united with the janitorial brands into SupplyWorks.[24][25]

References[edit]

  1. ^ Funk, Dale: "Interline Brands Files for IPO" Electrical Wholesaling, July 1, 2004
  2. ^ a b "Interline Brands, Inc." Hoovers Business Intelligence, Company overview
  3. ^ "Company Profile". Interline Brands. Interline Brands. Retrieved June 24, 2015. 
  4. ^ Bray, Chad (July 22, 2015). "Home Depot to Buy Interline Brands for $1.6 Billion in Cash". New York Times. Retrieved July 22, 2015. 
  5. ^ a b c Olsztynski, Jim: "Interline Brands’ Unique Vision" Supply House Times, May 4, 2004
  6. ^ a b "History" Interline Brands, About Us
  7. ^ "Interline Brands, Inc." Interline Brands, Inc. Stockholders Approve Adoption of Merger Agreement, August 28, 012
  8. ^ "Interline Brands, Inc. Expands into the $23 Billion Sanitary Supplies Market With the Acquisition of American Sanitary (AmSan)". 
  9. ^ "Interline Brands, Inc. Announces Acquisition of CleanSource". October 29, 2010. Retrieved March 17, 2015. 
  10. ^ Clinton, Michael (December 4, 2012). "Interline Brands buys JanPak for $82 million". BizJournals. Retrieved March 17, 2015. 
  11. ^ Cela, Lev (March 15, 2015). "Interline Brands Launches SupplyWorks - Merges Five Brands Into One". Yahoo Finance. Retrieved March 17, 2015. 
  12. ^ Bray, Chad (July 22, 2015). "Home Depot to Buy Interline Brands for $1.6 Billion in Cash". New York Times. Retrieved July 22, 2015. 
  13. ^ "Interline Brands Inc. (IBI)" Yahoo Finance
  14. ^ "Company Profile". Interline Brands. Interline Brands. Retrieved June 27, 2015. 
  15. ^ "About Us". Wilmar. Interline Brands. Retrieved June 27, 2015. 
  16. ^ "About Us". Interlinebrands. Interline Brands. Retrieved June 27, 2015. 
  17. ^ "About Us". Hardware Express. Interline Brands. Retrieved June 27, 2015. 
  18. ^ "About Us". Leran Gas Products. Interline Brands. Retrieved June 27, 2015. 
  19. ^ "About Us". Maintenance USA. Interline Brands. Retrieved June 27, 2015. 
  20. ^ "About Us". US Lock. Interline Brands. Retrieved June 27, 2015. 
  21. ^ "Copperfield". Interline Brands. Interline Brands. Retrieved June 27, 2015. 
  22. ^ "SupplyWorks". Interline Brands. Interline Brands. Retrieved June 27, 2015. 
  23. ^ "Our Brand Story". SupplyWorks. Interline Brands. Retrieved June 27, 2015. 
  24. ^ Longo, Linda. "AF Lighting Under New Ownership, Relocates to Philadelphia". Enlightenmentmag. A Bravo Integrated Media Design. Retrieved July 18, 2015. 
  25. ^ Cela, Lev (March 15, 2015). "Interline Brands Launches SupplyWorks - Merges Five Brands Into One". Yahoo Finance. Retrieved March 17, 2015. 

External links[edit]