Industrial and business supply distributor Global Industrial Company completed its first acquisition in 8 years when it added St. Louis, Missouri-based Indoff on May 22.
Despite not having acquired any new companies since 2015 when Global Industrial (then a subsidiary of Systemax) purchased Plant Equipment Group, the company’s CEO Barry Litwin says Global Industrial has been continually evaluating the market ever since, waiting on the perfect strategic fit.
“We have been active in the market for a long time,” Litwin told MDM. “But it’s really about finding the right fit at the right price. When we launched the customer experience strategy back in 2019 and we had been talking to the market about our organic strategy, we were continually asked about M&A. Our answer and our reproach has always been that we continue to remain active in the market. When we find a target that has a really good opportunity to extend our products and add customers, and a business that has a very similar go-to-market model, then that’s when it would make sense for us. I would tell you that we’re constantly looking in the market for opportunities like that.”
Indoff’s complementary product lines in material handling and furniture and interiors fit the bill for Global Industrial. Indoff also has an appliance business called Allied Appliance, which services the hospitality and government markets, and further complements Global Industrial’s Excel business.
“With Global Industrial being a leader in [eCommerce], we certainly see opportunities to leverage our platform over time to help them extend the offers and products they give to their customers.”
— Barry Litwin, Global Industrial CEO
Indoff will continue to operate as a standalone business under its current brand and current leadership team as a wholly-owned subsidiary of Global Industrial, so the integration process will be minimal, Litwin says.
“Frankly, it’s a great business and we’re not looking to make significant changes to it,” he said. “We’re just looking at areas we can further support its growth and help accelerate goals for Global Industrial.”
For one, Global Industrial hopes to incorporate eCommerce into Indoff’s selling model over time.
“With Global Industrial being a leader in that space [eCommerce], we certainly see opportunities to leverage our platform over time to help them extend the offers and products they give to their customers.”
In 2022, Port Washington, New York-based Global Industrial’s sales were $1.17 billion, a 9.7% increase from the year prior. In first quarter of 2023, sales were down about 5.1% year-over-year to 273.8 million. Consolidated operating income from continuing operations decreased 39.7% to $17.8 million, and net income per diluted share from continuing operations decreased 38.6% to $0.35.
The performance reflects cautious purchasing behavior from the company’s core businesses, Litwin said in May 2 news release.
