Why This Matters to Distributors: AD’s acquisition of supplyFORCE gives its independent distributor members an established platform for pursuing and servicing large, multi-site national accounts. More than 80 supplyFORCE employees are joining AD as the member-owned organization looks to expand its technology and services for national accounts.
AD has completed its acquisition of supplyFORCE, bringing the national accounts organization and more than 80 of its employees into the member-owned distributor group.
The transaction closed Sept. 24 after receiving unanimous approval from the AD LLC and supplyFORCE boards and what AD described as an overwhelmingly favorable vote by supplyFORCE shareholders. Financial terms were not disclosed.
The acquisition gives AD greater control over a national accounts platform designed to help independent distributors compete for and service large customers with operations across multiple locations and geographic markets.
SupplyFORCE coordinates business among independent distributors to provide national and multisite customers with broader geographic coverage and a single point of contact. Under AD ownership, supplyFORCE will continue operating as an optional program available to AD members, according to the company.
AD first announced plans to acquire supplyFORCE in July.
The deal is AD’s 18th transaction involving another member-owned organization, according to the company. AD has used acquisitions and combinations with other independent distributor groups to expand its scale, geographic reach, and services across the industries it serves.
AD Chairman and CEO Bill Weisberg said representatives from the AD and supplyFORCE boards formed a joint special committee that spent months working through the transaction before both boards approved it.
“We are equally grateful for the contributions and support of both AD and supplyFORCE leaders who worked tirelessly to ensure that the process of bringing together both organizations was executed in a manner that represents the best interest of its shareholders, members, supplier partners, associates, and the National Account Customers that count on supplyFORCE to deliver great service,” Weisberg said.
AD has been building its national accounts leadership team ahead of the closing.
The organization named Shannon Bibbee president of national accounts in August following the announcement of the proposed acquisition. In September, AD named Rocky Belmonte executive vice president of national account sales, putting him in charge of the commercial organization serving national accounts.
The appointments, combined with the supplyFORCE acquisition, give AD a dedicated management structure for expanding national accounts across its membership.
John Harman, president of The Kendall Group and chairman of supplyFORCE, said additional investment in technology will be a focus following the acquisition.
AD said supplyFORCE will operate as a value-added program like AD eCommerce and the AD Center for Independent Leadership, which members can choose to use rather than as a mandatory service.
The acquisition adds national accounts to AD’s broader portfolio of shared services for independent distributors across markets including electrical, industrial and safety, HVAC, plumbing, pipe, valves and fittings, bearings, power transmission, building supplies and waterworks.
With the transaction complete, AD said its focus will shift to integrating supplyFORCE and expanding the program for members and national account customers.
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