Ferguson ready for the Big Apple after acquisition of Davis & Warshow
Ferguson Enterprises has wanted the chance to step into the bright lights of New York City for some time now. With its recent acquisition of respected plumbing wholesaler Davis & Warshow, the United States’ largest plumbing distributor has found the perfect dance partner.
On Tuesday, Ferguson announced it had acquired Davis & Warshow in a stock transaction. It marks the sixth acquisition Ferguson has completed in the last 14 months and comes on the heels of its recent 2012 fiscal year report of $9.7 billion dollars in sales - a 10% increase over 2011.
With a presence in the New York City commercial market, Ferguson CEO Frank Roach is pleased his company has aligned with the “iconic” Davis & Warshow, a company that has built a strong customer base from its 87-year history.
“We wanted to go to New York the right way,” Roach told Supply House Times. The right way was teaming up with an iconic brand known for service, growth and performance. And having a brand built on people doing the right things. It was a natural fit for us.”
“The timing was right for both companies. We were looking at expanding our presence in the residential space and Davis & Warshow was looking for opportunities to expand as well.”
Ferguson Senior Vice President of Business Development Steve Petock says the companies will hit the ground running because of its shared business mentalities and beliefs.
“Also, you look at the company’s core values, you look at the strategies they operate with and they’re very closely aligned with what we are,” Petock told Supply House Times. “We see a lot of synergies immediately as soon as we get together and start sharing best practices.”
Davis & Warshow CEO Frank Finkel says his company will be able to grow with the backing of like-minded company Ferguson. “Ferguson and Davis & Warshow share the same primary focus - providing outstanding service and creating loyal customers,” Finkel said. “We will continue to operate our business the same way we always have and expect to increase our service level even further with the vast resources of Ferguson behind us.”
Roach believes Ferguson will be able to hit the ground running in New York City because of Davis & Warshow’s core values of relationships. “There is a cultural fit with their people. People who want to perform well and take care of their customers while seeking opportunities for growth,” Roach said. “It really is all about people and not bricks-and-mortar. We can do bricks-and-mortar. But, the relationships they have with their customers…that’s something we could not create immediately like they have over their history.”
Ferguson COO Kevin Murphy was impressed with how well Davis & Warshow is able to cover the broad spectrum of the wholesale industry. “(They have) a nice blend of local branches, showrooms, repair-remodels and new construction. A good, good blend,” Murphy told Supply House Times.
Davis & Warshow is well known for its green initiatives. It was recently recognized for converting its 209,000-sq.-ft. Queen facility from fluorescent lighting tubes to LED lighting and becoming the first U.S. facility to reach net zero lighting costs with LED tubes. Roach is ready to learn from Davis & Warshow and begin implementing some of the company’s ideas into the larger Ferguson group.
“This is the beauty of bringing on a new company,” Roach stated. “We can learn from our acquisitions and this is definitely an area where they can help us accelerate our green initiatives and performance.”
Read here for Ferguson’s announcement on acquiring Davis & Warshow.