The MDM news cycle for the various wholesale distribution markets we provide coverage of has been robust during 2024’s first quarter, but perhaps no other industry vertical has had as many big headlines as electrical supplies — especially this past week.

Major distributors Border States and Sonepar dominated headlines with significant acquisitions that illustrate further consolidation in electrical supplies: Sonepar is set to acquire Michigan-based distributors Madison Electric Company and Standard Electric Company, while Border States will add Virginia-based Dominion Electric Company.

Both deals are expected to close by the start of May and represent considerable geographic and revenue expansion.

On MDM’s 2023 Top Distributors List for electrical, data and security products, Sonepar’s North American operations charted at No. 3, and Border States was No. 6.

Here, let’s dive into the details of Border States’ Dominion deal and what it means for the distributor going forward, as well as how it aligns with the company’s other recent expansion. Stay tuned for a similar breakdown for Sonepar.

What Border States Gains in Dominion

In acquiring Arlington, VA-based Dominion, Border States gains an 84-year-old, family-owned distributor that serves customers in markets of commercial, residential, government, business and institutional spaces across Virginia and Maryland. 

Self-branded as the largest family-owned and operated electrical distributor in the Mid-Atlantic, Dominion operates nine branches with over 300 employees, and Border States noted that the company has over $374 million in annual sales. 

Geographically, the pending acquisition’s benefit is obvious when looking at Border States’ current locations map for the surrounding region below:

The nine Dominion branches in Virginia and Maryland will give the company an immediate strong foothold in the mid-Atlantic and enable it to serve major metropolitan areas of Washington D.C./Arlington/Alexandria and Baltimore.

This was the branch location map Border States shared upon announcing its acquisition of Sequel Electric Supply in August 2023 (click on it for larger version): 

Once Dominion is added, it essentially leaves only the California coast, Georgia and the greater Northeast as the only regions left for the company to fill. So, we’ll be interested to watch for any news of further Border States expansion into any of the metro areas in those remaining states in the near future.

The Dominion deal also represents a great final milestone for CEO David White, who is set to retire on April 1 after 24 years with the company, including the past 4 as its top executive. He will be succeeded by current Border States President Jason Seger, a 25-year company veteran.

Dominion has some interesting major customers that include:

• The National Air and Space Museum in Washington D.C. — the venue of the National Association of Wholesaler-Distributors’ 2023 Executive Summit Gala.
• Silver Line Metro – A rapid transit line of the D.C. metro system
• Nestle’s Arlington headquarters
• Virginia Tech’s Innovation Campus
• The National Cancer Institute in Shady Grove, MD

Dominion has six business divisions: Commercial Lighting, Material Sales, Services, Supply Counters, Residential Lighting and Switchgear/Power Distribution.

The Big Picture: 3x to 4x Expansion in 13 Years

The Dominion acquisition will Border States’ national footprint to over 130 locations and approximately 3,500 employees. And based on MDM’s calculation of industry revenue per employee, it puts the company right around $4 billion in annual revenue today. 

According to Border States’ history timeline, it first topped $1 billion in annual sales in 2011, when it had 58 branches and about 1,300 employees. So, whether you go by sales or physical footprint, the company essentially tripled or quadrupled in size in just 13 years. Its timeline states that Border States first topped $2 billion in 2018, when it had 109 branches and about 2,500 employees. It has since doubled its revenue in a little over 5 years.

While Dominion is just the latest addition, it’s the largest since the 2017 acquisition of Kris-Davis Co., which added 19 locations across Iowa, Kansas, Missouri, Nebraska, Oklahoma and Texas. That followed the 2016 addition of Shealy Electrical Wholesalers in the Carolinas, which gained 17 locations and 350 employees; the 2014 purchase of Western Extralite, which added 17 branches in Kansas and Missouri; and the 2013 acquisition of Electrical Wholesale Supply of Utah, which added eight branches.

Those four deals represented a rapid expansion for Border States beyond its namesake Dakota states.

Much more recently, Border States added a major presence in the U.S. south with its aforementioned August 2023 acquisition of Sequel Electrical Supply in Meridian, MS, which added 18 locations across Mississippi, Louisiana, Alabama and Florida, backed by 220 employees.

Final Thought

Again, even with the leadership transition from White to Seger, I don’t expect Border States to slow down on the expansion front anytime soon. Since the company is employee-owned and private, its remarkable growth story over the 13+ years has been quieter than it may have been for a publicly-traded company. But it’s a story well worth telling.

More from Border States

Other recent news out of Border States includes:

• The appointment of Jason Stein as its new Chief Information Officer, announced Feb. 1
• The acquisition of Hollywood, CA-based Winston Engineering — a provider of professional mechanical, electrical and plumbing (MEP) engineering services for residential, commercial, educational and government needs that is licensed in 16 states. That deal closed March 1.
• The news of former CEO Tammy Miller seriously considering running for North Dakota’s governor seat, which was confirmed when she announced her gubernatorial campaign for the position on Feb. 15.
• The company’s Spring 2022 rebranding from Border States Electric and BSE acronym to simply Border States, which included a new logo and tagline, “Border States. For the Unstoppable.”