The company described the move as the next phase of its distribution strategy following the Juniper acquisition, which combined two large distributor networks and created an opportunity to streamline operations globally

The leadership changes have come as foodservice distributors serving schools and institutional customers continue navigating higher operating costs, evolving nutrition requirements and ongoing supply chain pressures tied to federally funded meal programs.

The strategy is expected to focus on acquiring and combining automation distributors and related businesses into a larger specialty distribution company.

Chris Kelley most recently served as president of USABlueBook, a specialty distribution business within HD Supply.

The result is a cost structure moving against distributors at the product, fuel, and freight layers simultaneously.

Transportation and warehousing costs, a direct operational input for wholesale distributors, showed some of the sharpest movements in the April report.

Robert Aarnes, who has led ADI since 2018, will become president and CEO of the standalone distributor.

For distributors, the practical steps are clear. Companies that imported directly and paid duties under the International Emergency Economic Powers Act should be filing claims through the Consolidated Administration and Processing of Entries portal.

President and CEO Jay Geldmacher said the company exceeded expectations during the quarter despite ongoing economic uncertainty.

Chairman and CEO Brad Jacobs said the quarter reflected weaker conditions across the building products sector as well as continued investments in technology, staffing, and integration work.