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MDM recently spoke with United Stationers President and CEO Dick Gochnauer about why the master distributor bought MBS Dev, a small Denver-based software provider for distributors. The move was part of a long-term strategy to help both its resellers and the technology providers that serve them to stay on top of capabilities necessary to stay competitive in today’s online environment.

In February 2008, United Stationers President and CEO Dick Gochnauer told MDM the master distributor was well on its way to better integrating its customers – which it calls “resellers” – electronically through e-commerce, online marketing, and data tools and services.

The Deerfield, IL-based distributor of office, jan-san, and industrial

United Stationers Inc., Deerfield, IL, a North American wholesale distributor of business products, today sales for the second quarter 2009 were $1.16 billion, down 7.4% from the prior year same period. Profit decreased 1.4% to $21.5 million.

Weak macro-economic conditions contributed to revenue declines in furniture, industrial, technology and traditional office supplies. Despite these conditions, the janitorial/breakroom category experienced sales growth.

"United’s results reflected our associates’ excellent efforts to control what we can in the face of difficult market conditions," said Richard W. Gochnauer, president and chief executive officer. "While employment and manufacturing trends continued to weaken in the quarter, the rate of change in our sales improved sequentially …

United Stationers Inc., Deerfield, IL, reported sales of $1.12 billion for the first quarter of 2009, down 10% from first quarter 2008.  Profit fell 36.6% to $13.5 million.
 
Continued weakness in the economy contributed to reduced sales in all product categories with the exception of janitorial/breakroom, which remained at last year’s level. The company previously announced it would be eliminating 250 positions.
 
While we are encouraged by some recent trends, we expect markets to remain weak in the near term and are planning accordingly,” said Richard W. Gochnauer, president and CEO. “On a more positive note, the economy has generated renewed interest among customers and suppliers around utilizing United’s …

United Stationers Inc., Deerfield, IL, reported sales of $1.1 billion for the fourth quarter 2008, an increase of 2.3% over the same period 2007. Profit declined 20.5% to $22.6 million.
 
Sales for 2008 grew by 7.3% to $4.99 billion. Year-end profit totaled $98.4 million, down 8.2% from 2007.
 
ORS Nasco, acquired in December 2007, contributed approximately 6% to the fourth quarter growth. Sales per workday in the janitorial/breakroom product category were up approximately 9%, while the traditional office products, technology products and office furniture categories were down 3%, 8% and 20%, respectively.
 
 Business customers are reacting to the recessionary environment by reducing spending and employment, and we are seeing the effects in …

United Stationers Inc., Deerfield, IL, announced it would eliminate 250 positions – about 4% of its total workforce – in response to the challenging economic environment as it stays focused on maintaining its sound financial position and delivering strong cash flow.
 
About half of the position eliminations have been identified and will occur this week. The balance should be substantially completed by March 31. Management and non-management employees will be affected by these reductions.
 
"We have a committed and valued workforce, so it is with considerable reluctance that we are proceeding with a staffing reduction," said Richard W. Gochnauer, president and CEO. "This action is, however, a necessary response to current market …

United Stationers Inc., Deerfield, IL, master distributor of business, janitorial/breakroom and industrial products, reported sales of $1.3 billion for the third quarter 2008, an increase of 12% over the prior year quarter. Profit increased 20% to $33.1 million.
 
The December 2007 acquisition of ORS Nasco contributed 7% to the growth rate. Product category sales were up nearly 15% in janitorial/breakroom, up 2% in technology, and down 10% in furniture. Traditional office products grew 3%, driven by a significant increase in cut sheet paper.
 
Sales for the nine months ended Sept. 30, 2008, were $3.8 billion, up 8.9% from the same period last year. Year-to-date profit declined 3.8% to $75.9 …

United Stationers Inc., Deerfield, IL, master distributor of business, jan-san and industrial products, has tapped Stephen A. Schultz to the position of group president, LagasseSweet and ORS Nasco.

In this new role, he will assume responsibility for setting and monitoring the delivery of strategic goals and objectives for both business units. Schultz joined Lagasse, the company’s janitorial and breakroom supplies division, in early 1999 and has served as its president since 2001.
 
Todd A. Shelton has been promoted to president of LagasseSweet after serving since 2005 as its COO. Shelton joined Lagasse in 2001, directing its financial and operational functions. In his new role, he will be responsible for leading LagasseSweet in the development and execution of …

Recently, United Stationers Inc. held a conference call to discuss its second quarter earnings. Though the earnings themselves are interesting -sales were up 9.7%, mostly on the strength of the ORS Nasco acquisition, what was more interesting was how the company is utilizing technology to address transportation costs and improve customer relations.
 
Sure, a lot of companies are utilizing route analysis software to improve delivery routes and reduce fuel usage. United Stationers is doing that as well. However, they’ve also worked with an outside firm to create a network of local and regional couriers to supplement deliveries already being handled by UPS or FedEx.
 
In particular, smaller orders or harder-to-deliver orders can be turned over to the courier network for …

United Stationers Inc., Deerfield, IL, master distributor of business, janitorial/breakroom and industrial products, reported sales in the second quarter 2008 were up 9.7% to $1.25 billion.
 
Seven percent of the growth rate came from ORS Nasco, which was acquired in December 2007.
 
Sales were up nearly 14.4% in the janitorial/breakroom category, up modestly in office products and technology, and partially offset by an 8% decrease in furniture sales.
 
Sales in the first half 2008 rose 7.3% increase over the prior year, with 6.6% related to ORS Nasco.
 
Our supplier and reseller partners continue to tell us that the marketing and distribution services we offer as a wholesaler are even more critical during times of slow growth, high fuel costs …

United Stationers Inc., Deerfield, IL, reported first quarter 2008 sales were up 5% to $1.25 billion. The December 2007 acquisition of ORS Nasco added $74 million. Excluding acquisitions, sales were down 1.2%.
 
We are taking action to help offset the effects of a weaker economy that adversely affected sales, particularly in higher margin discretionary products,” said Richard W. Gochnauer, president and CEO. “We reduced product purchases and are managing inventory levels consistent with the sales environment. These actions reduced volume-related supplier allowances earned, while improving inventory turnover, working capital efficiency and cash flow. On a positive note, our sales and earnings were boosted by the investments we have made in the janitorial/breakroom category and …

MDM spoke with United Stationers CEO Dick Gochnauer recently about the company’s move into the industrial sector as well as the role it plays as a master distributor. In Part II of this interview, Gochnauer addresses private label, recruiting and retaining employees and data-sharing.
 
MDM: How is United Stationers preparing for a potential economic slowdown in the next year?
 
Dick Gochnauer: I have less concern over industrial, foodservice and JanSan. In the office products space, we are seeing a slowdown. We saw it starting to occur in 2007. We figured it was coming and it did. We are prepared if the economic slowdown continues in 2008. We are planning to get growth but know that it may be more challenging. The good news in the office …

United Stationers Inc., Deerfield, IL, reported sales in 2007 grew 2.2% to $4.6 billion. This increase reflected continued strong growth in the janitorial and breakroom supplies category.
 
Sales for the fourth quarter were $1.1 billion, up 0.6% compared with the prior-year period. After adjusting for an additional workday in 2007, sales were down 1.1%.
 
First quarter organic sales to date are trending up approximately 1.6% over the same time last year, driven by strong revenues from janitorial and breakroom supplies,” said CEO Richard Gochnauer. “Office product sales remain soft. Including incremental sales related to ORS Nasco, reported revenues to date are up approximately 7.3%, compared to the prior year.”
 
“Our focus on profitable growth …

United Stationers, with sales approaching $5 billion, is a master distributor of business, foodservice and janitorial supplies, and recently moved into the industrial space with the purchase of ORS Nasco, a master distributor of industrial supplies with sales of close to $300 million.


MDM recently sat down with United Stationers’CEO Dick Gochnauer to talk about United’s recent move into the industrial sector, as well as what the company is seeing in the various market segments it serves. United Stationers has recently embarked on a journey to expand its e-commerce capabilities with its distributor customers.

It also plans to spread best practices from its core competency -office products distribution -into other segments: JanSan (served by its …

United Stationers Inc.’s wholly owned subsidiary, United Stationers Supply Co., Deerfield, IL, has agreed to acquire ORS Nasco Holding Inc., an affiliate of Brazos Private Equity Partners, LLC, for $180 million. ORS Nasco, Muskagee, OK, is a master distributor of industrial supplies, selling exclusively to independent distributors.
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The company has annual sales of $285 million. ORS Nasco offers about 200,000 branded and private-label products from over 600 manufacturers. ORS Nasco sells to more than 10,000 independent distributors in multiple channels, including industrial, MRO (maintenance, repair and operations), safety, construction, welding, and oilfield services.
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ORS Nasco serves its highly diverse customer base through eight distribution centers across …

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