Industry News
SPR purchase complete Further to previous reports, INDEPENDENT DEALER can reveal that Central National Gottesman (CNG) completed the acquisition of S.P. Richards Co. (SPR) as expected. “On January 31, SPR became a wholly owned subsidiary of CNG, becoming our fourth vertical operating division,” confirmed Bill Meany, a senior vice president of CNG, who will assume the role of president of SPR. “SPR will operate as a separate wholesale division with their own P&L. Our customers and suppliers will continue to work with the same people they are used to working with.” As previously stated, former executive chairman Yancey Jones and former president and CEO Mike Maggio will remain with the company for the time being. “Mike and Yancey will assume new roles supporting SPR in this transition,” continued Meany. “Mike will become senior advisor to me, as well as a member of the SPR Advisory Board. Yancey will assume the role of SPR Advisory Board president. Mike and Yancey are committed to ensuring a successful transition and supporting the strategic growth initiatives that they had set for 2023. “It is business as usual for SPR. Our colleagues are dedicated to fulfilling the needs of our customers and those of their end-users. We will continue to improve the quality of our service, our people and in the important role we play as a service provider in the industry.” One of the news owners’ immediate priorities is to focus on rebuilding inventory levels, something that the wholesaler is thought to have struggled with since the pandemic. CNG’s existing distribution network, both nationally and internationally will be key FEBRUARY 2023
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to achieving this goal. “We pride ourselves on bringing the highest level of service and professionalism to everything we do,” Meany declared. “Over the course of the next several months we are focused on growing our inventory position to support customers’ demands and reviewing the delivery requirements of our in various segments of the business” The deal has been generally well received by members of the IDC, with commentators citing CNG’s impressive track record in acquisitions, solid financial standing and well-respected, family-led ownership. SPR represents one of CNG’s largest acquisitions to date. It has also put paid to fears that the company might be sold to a more direct competitor of the IDC, although some have expressed concern that there are categories, such as paper and packaging, in which CNG divisions act as direct resellers. “I think it’s going to be great for the industry,” said IOPFDA executive director Mike Tucker. “The company has a lot of money, they haven’t had to borrow money for the acquisition, and they are very experienced when it comes to warehouse management and logistics. I think that will prove to be a strength for SPR.” “I think the chances of a positive outcome from this acquisition are good,” added Mark Leazer, executive director of AOPD. “The industry, and especially the IDC, needs to have strong wholesalers. There was an element of uncertainty around the future of S.P. Richards and this deal will help remove that. It looks like the new owners are leaving a lot of the current team in place to provide some continuity. I see that as mostly positive. There are a lot of strong, experienced veterans who know the industry well still at SPR.” INDEPENDENT DEALER
Bill Meany
“I think this is a new and exciting development,” said Matthew Hebert, president at Office Partners. “From what I know, they are very good at distribution and have an incredible financial status. So, I believe this will bring new opportunities to dealers and vendors to help with maybe new ways of distribution.” “At this point there is more that we don’t know than we know. That’s my usual reaction in these circumstances,” said Mike Gentile, president, and CEO of ISG, sounding a note of caution and optimism. “I am relieved that someone has acquired the business. Yes. Because it removes the uncertainty around S.P. Richards’ future. I am hoping that CNG invests the monetary and intellectual capital to the company, SP can have a tremendous future and fill a strategic gap in our industry. A clear and decisive strategic direction is needed. And I hope it brings a different temperament to the company, by which I mean a more positive, collaborative relationship with ISG as a buying group” Based in Purchase, New York, CNG is a privately held, $9 billion, global paper, packaging and facilities supplies sales and distribution giant. Its distribution division includes the Lindenmeyr Munroe, Kelly Spicers and Spicers Canada businesses. CNG boasts more than 137 years of family ownership, market knowledge, and adaptability to create value for clients worldwide. It was founded in 1886 and employs 3,100 people in 29 countries around the world. PAGE 16
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