Thursday December 9th, 2021 – Sonepar USA, a subsidiary of the privately held Sonepar Group, announced that it has entered into an agreement to acquire Richards Electric Supply Company. This acquisition allows Sonepar to grow its business into Ohio and Kentucky markets and serves as another example of the Group’s continuing investment in North America. ArkMalibu acted as the exclusive financial advisor to Richards Electric. Terms of the transaction were not disclosed.
A family-owned business headquartered in Cincinnati, Ohio since 1937, Richards Electric will add four branch locations and 150 associates to the Sonepar network. Richards Electric expects to record sales in excess of $125M for 2021.
In the United States, Sonepar operates through a network of electrical, industrial, and utility distributors with 700 locations and coverage in all 50 states. The Richards Electric acquisition follows Sonepar’s August purchase of Springfield Electric Supply Company in Springfield, Illinois and further builds Sonepar’s presence in the Midwest.
Rob Taylor, President of Sonepar North America, said:
“Richards Electric’s footprint makes it a great strategic fit for Sonepar. It is a well-respected company with an outstanding track record of solutions-oriented customer service that aligns very well with ours. I look forward to our companies coming together and leveraging strengths to expand Richards Electric’s business opportunities.”
Commenting on the acquisition, Mike Misrach, Owner and CEO of Richards Electric, said:
“We were attracted to Sonepar’s decentralized approach and their reputation as a global leader in electrical distribution. We believe Sonepar will bring best-in-class technology and distribution expertise to expand our business. We also share the same culture of a family managed company that values employees and a first-in-service philosophy. We’re looking forward to the next chapter of Richards Electric as part of the Sonepar family and its network of great companies.”
Mike Misrach also acknowledged the ArkMalibu team:
“We could not be happier with our decision to trust ArkMalibu with the sale of our family-owned business. Their breadth of knowledge in the distribution space coupled with their detailed analysis of what makes our company unique led to a deal that surpassed our expectations in many ways. I would not hesitate to recommend ArkMalibu to any business owner who is considering an exit – they guided us well throughout the process and we thoroughly enjoyed working with their team.”
The acquisition is expected to close in December, subject to customary regulatory approvals.
ArkMalibu is one of the only Mergers & Acquisitions advisory firms that focuses exclusively on sell-side transactions for business owners throughout the United States and internationally. ArkMalibu serves its privately owned clients based on its conflict free market position, proprietary process, experience and creativity. ArkMalibu prides itself on guiding clients through unchartered M&A territory with experience, integrity, and confidentiality at every turn. ArkMalibu was named ACG Cincinnati Deal Maker of the Year in 2010 and 2018.
About Richards Electric
Richards Electric has been helping its customers power homes, businesses, and cities by supplying quality electrical products and exceptional customer service ever since Richard Misrach opened the company’s doors in 1937. Over eighty years later, Richards maintains the same customer-focused values with an increased emphasis on technology, innovation, and solution-oriented service. These, paired with one of the most extensive product inventories in the Midwest, make Richards Electric one of the premier companies in its industry. The company’s 4 branches are located in Cincinnati (OH), Dayton (OH), Louisville (KY), and Lexington (KY).
About Sonepar USA
Sonepar USA is an independent, family-owned company with global market leadership in the B-to-B distribution of electrical, industrial and safety products, services and solutions. The company is a proud member of the Sonepar Group, the world’s largest privately held electrical distributor. Sonepar entered the US in 1998 and has continued to grow due to strategic acquisitions and organic growth. Today, Sonepar USA is represented by 14 locally managed operating companies with over 700 locations nationwide. For more information, visit soneparusa.com.