Why This Matters to Distributors: Electrical Equipment Co.’s acquisition of Foster Electric expands EECO’s Virginia presence and adds an established electrical contractor customer base to its industrial automation and power solutions business. Foster will retain its name, Lynchburg location and 25 employees as EECO pursues growth during its 100th year in business.
Electrical Equipment Co. has acquired Foster Electric, adding a longtime Central Virginia electrical distributor as EECO expands its regional business and contractor customer base.
Raleigh, North Carolina-based EECO said the transaction closed Aug. 11. Financial terms were not disclosed.
Founded in 1956, Foster Electric is a full-line electrical supply distributor serving Central Virginia and surrounding markets from Lynchburg. The company has 25 employees and has spent 70 years building its business with electrical contractors.
Foster will continue to operate under its existing name from its Lynchburg location with its current employees, EECO said.
The acquisition brings together distributors with complementary customer bases.
EECO specializes in industrial automation and power solutions and serves industrial customers across the Carolinas and Virginia. Foster brings an established position in the electrical contractor market in Central Virginia.
That gives EECO an opportunity to expand its contractor business while potentially bringing more of its automation and power capabilities to Foster’s existing customers.
“For nearly 70 years, our team has focused on taking care of the customers and communities we serve, and that won’t change,” Foster Electric president Duane White said. “Joining EECO gives us access to greater resources while allowing us to keep operating the way our customers have come to expect.”
EECO President and CEO Mark Holmes said Foster’s local market position was an important part of the deal.
“Foster Electric’s reputation for service and deep roots in the Lynchburg market make them a great fit for EECO,” Holmes said. “As we celebrate 100 years of serving our customers, welcoming Foster Electric’s team and supporting their continued success as an independently operated part of our company is exactly the kind of growth we want to build on.”
EECO was founded in Raleigh in 1926 and is marking its 100th anniversary this year. The full-line electrical distributor operates 11 locations across Virginia, North Carolina and South Carolina, employs approximately 265 people and reports annual sales of $250 million.
The Foster deal adds to that regional platform without eliminating the acquired company’s local identity, a structure increasingly used by distributors seeking to retain customer relationships, employees and local market knowledge following acquisitions.
EECO, in turn, gives Foster access to a larger regional organization and additional resources while leaving its existing operation intact.
The transaction comes as electrical distributors position themselves around increased investment in power infrastructure, industrial automation, manufacturing, and other electrical-intensive markets.
EECO said Foster will continue operating with the same team and from the same Lynchburg location following the acquisition.
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