The next VDTA/SDTA Convention & Show will be in
New Orleans, LA
February 27 - 29, 2012
at the Ernest Morial Convention Center
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The next VDTA/SDTA Convention & Show will be in |
Electric Sweeper Service Company Completes Acquisition of Substantially All Assets of Star Equipment and Supplies Enhanced Sales and Distribution Capabilities Position Company for Further Growth VALLEY VIEW, OH – The Electric Sweeper Service Company (“ESSCO”), a MCM Capital Partners portfolio company and the nation’s leading wholesaler of vacuum cleaner parts and vacuum cleaners to independent dealers, completed its acquisition of substantially all assets of Star Equipment and Supplies (“Star”) in mid-September. Based in Hauppauge, NY, Star is one of the most recognized and trusted brand names within the independent vacuum dealer channel. Since its founding in 1963, Star has built a loyal, geographically diverse customer base for vacuum cleaner parts and supplies, finished goods and central vacuum systems. Over time, company management successfully established coast-to-coast sales and distribution capabilities by opening and operating distribution centers in Hauppauge, Fontana, California and Earth City, Missouri, as well as customer service centers in Denver, Colorado and Atlanta, Georgia. Moving forward, ESSCO will leverage the Star brand as a key marketing asset under its corporate auspices. ESSCO also plans to retain Star’s existing management, customer service and warehouse staffs. Terms of the transaction were not disclosed. “The future looks very bright for the combined companies,” said Tom Bianco, ESSCO CEO. “This is a great marriage of two leading organizations in the industry which will eventually benefit our customers greatly. The biggest value is the fact that we are now truly a nationwide organization. ESSCO and Star customers will eventually be able to be shipped by their closest warehouse which will save both time in transit and freight costs. Another benefit of the acquisition is the increased territories that both organizations now enjoy. The combined companies are now able to sell Panasonic Platinum, Hoover and Proteam equipment to a greater portion of the country and we will continue to negotiate larger territories for our customers.” The acquisition of substantially all assets of Star will strengthen ESSCO’s industry leadership in its core independent vacuum cleaner dealer channel as management continues to expand operations in channels that include janitorial supplies and pet products. Concurrently, Star’s broadened geographical reach will benefit dealers in all regions by allowing them to receive orders quickly and make customer service and order entry available during business hours. “Other significant ways that ESSCO and Star customers will benefit eventually includes proprietary products and lines of equipment that each company currently carries,” said Bianco. “Many dealers were happy about the acquisition simply because they could now order everything they needed from a single source. The number of parts carried in stock will increase from 10,000 to 15,000 which will improve upon the already unequalled fill rate for ESSCO and Star. Lines of equipment like Powerstar central vacuums which have a very strong dealer following will be available to all ESSCO and Star customers. ESSCO customers will additionally benefit from Star employees expertise in central vacuums. Additionally, ESSCO’s catalog and Web site, long industry-standard resources for parts and vacuum cleaners, will be enhanced as new products become available. The Web site includes more than 4,500 schematics in an easy-to-search format with real-time price and stock position search features. Dealers will also have one-stop access to proprietary equipment brands and parts that were once sold separately by each company. Examples of these products include Pet Supplies and Janitorial supplies that Star dealers will now have access to. This, in turn, provides easier access to a greater assortment of products than ever before. “We have been working very closely with our counterparts at Star since the acquisition,” said Terry Finger, ESSCO VP of marketing. “The employees of ESSCO and Star are remarkably similar. Customer service is the number one priority in both organizations and Star has some very experienced and knowledgeable customer service representatives. One of the biggest hits so far is offering the ESSCO catalog and Web site to Star customers and employees alike. These valuable tools were an immediate benefit from a research standpoint on the customer level and from an efficiency standpoint for Star employees. The customer service representatives really enjoy the schematics on www.essco.net.” Company Pursues Fast-Track Growth “We will use our newly combined sales volume to actively source parts and equipment from other sources. We understand that it is imperative that our dealers have top quality lines of products to sell profitably and be able to compete with mass merchants. Our greater buying power will allow us to purchase in large quantities at very competitive prices. We will continue to use our resources to research unique products that can only be sold through independent vacuum shops as well.” “We are pleased to offer our support and best wishes to Tom Bianco and ESSCO in the acquisition of substantially all assets of Star (f/k/a Star for Parts),” said Eddie Chernoff, president of Motors & Armatures, Inc., owner of Star. “Motors & Armatures, Inc. (MARS), established in 1946, is experiencing significant growth with unprecedented upside opportunities which will require focusing all of our resources on the heating, ventilating, air conditioning and refrigeration industry. While we have enjoyed our 24-year stewardship of Star, our divestiture of the company will best serve the interests of both ESSCO and MARS as well as their respective employees and vendors.” “We believe this is a perfect fit for both Star and ESSCO. The transition has been seamless so far and we are able to share many benefits that the two strongest distributors in the industry provide to their customers,” said Jeanne Rogers, marketing manager at Star. “Both companies will have a larger product mix to sell in the market, more locations for better delivery service and Star customers will truly enjoy the catalogs and Web site access from ESSCO while still being able to work with their favorite knowledgeable Star customer service representative. We look at his move as a very positive one for our company and our customers and the truth is that the best just got better.” About The Electric Sweeper Service Company About MCM Capital Partners Reprinted from Floor Care Professional, November 2009 |