Growth and Partnership Increase in North Carolina

What does it mean when a company grows? When you’re a contractor who needs materials at your job site, you hope that it means more selection, expanded service, and options that support your jobs — no matter where they are in the country.

The Macomb Group is proud to announce the next step in our growth, which aims to deliver all those benefits and more: the acquisition of Mechanical Supply Company, which will serve as the center of our southeastern regional presence.

Mechanical Supply Company is a well-respected, long-established North Carolina-based PVF distributor headquartered in Matthews, with branches in Greensboro and Charlotte. The acquisition enables us to extend The Macomb Group’s service to the southeast marketplace as well as support out-of-state contractors looking to expand their areas of business activity.

“It’s an important piece of the jigsaw for us, a growing market, and a great location that many businesses are moving into,” says Executive Vice President Keith Schatko.

But the deal is about much more than geographical growth. The Macomb Group’s approach to mergers and acquisitions is not just about gaining market share or driving out competition; it’s about truly growing a meaningful business in the communities and markets we serve.

That means acquiring businesses that share The Macomb Group’s culture, values, and commitment to service.

Proven reputation

“In the case of Mechanical Supply Company, they bring a proven reputation in their markets, being the go-to PVF outfit,” says Keith, “and they offer what we have always offered: superior customer service.”

Similar to The Macomb Group, Scott Reid and Dennis Mullen — the co-founders of Mechanical Supply — have built a team spirit over more than 30 years, valuing employee expertise and sharing a philosophy of understanding customer needs, getting the job done however long it takes, responding to emergency calls at all hours, and opening for special needs.

“The owners have been hands-on,” Keith explains. “They’ve been in business 40-plus years each, so they know how to lead by example. Everyone appreciates the fact that not only do they help them do what they should be doing but they also do it with them. And that’s something we often hear about Macomb.”

Not surprisingly, then, Mechanical Supply’s owners were looking for a buyer that would support their values and help the business grow to the next level.

Mark Calzolano, The Macomb Group’s Vice President of Corporate Development, played a key role in the acquisition. He agrees that this company just had the right fit.

“Anybody can do a transaction if they’re willing to spend a little time and invest capital,” he says. “The real challenge is to do the right transaction: one that provides value and opportunities for all stakeholders — your employees, your customers, your vendors, and your owners.”

Cross-sell opportunities

As well as a meeting of the minds on values, Mark sees The Macomb Group and Mechanical Supply meshing as established PVF suppliers in their respective territories with exciting cross-sell opportunities. For example, The Macomb Group’s expertise in automotive, power, and energy markets presents an opportunity for our new sales team in the southeast, and to that end, plans are already underway for joint sales and marketing calls.

“In a number of ways, Mechanical Supply is where Macomb was many years ago,” Mark adds. “There are numerous similarities between the two organizations. Our first meeting with the founders was almost like a reunion, with both sets of owners taking turns telling stories about growing their businesses and sharing lessons learned along the way. There was an instant connection and genuine respect for what each team had accomplished.”

This is reassuring for our new colleagues in North Carolina at a time when the process of change inevitably generates uncertainty, not to mention a massive team effort to integrate the two organizations.

Given its excellent reputation in North Carolina and surrounding markets, Mechanical Supply Company will retain its name, subtitled with its membership in The Macomb Group, and will continue to operate as it did previously. The real impacts of the change will be positive. Mechanical Supply will gain

• some new market sector expertise;
• support for sales and large contracts;
• greater purchasing scale and assistance with inventory control;
• a dedicated human resources department;
• the support of Macomb’s IT group;
• a website with eCommerce capabilities; and
• Electronic Data Interchange (EDI) data handling, demanded by some larger customers.

For customers, the acquisition will also deliver significant benefits.

“A lot of the mechanical contractors in our market have expanded into other markets, such as Tennessee, Kentucky, and even towards the Carolinas, and we have a few people who are located here in Michigan who are bidding work in the North Carolina market,” says Keith. “What this will do is give us a chance to showcase our brand in the Carolinas as well as bring the economies of scale and pricing to those jobs.”

All in all, the acquisition isn’t so much about a need to get bigger as it is to provide better service to our customers.

This acquisition is a validation of the efforts of our newest colleagues in North Carolina and is an achievement for everyone at The Macomb Group.

As Mark explains, “The team at Mechanical Supply Company has built a great engine. Together, we’ll be driving to new and exciting places.”