BIG INTERVIEW
SPR’s VISION:
A work in
PROGRESS
L
Almost two years into the momentous acquisition of S.P. Richards, the pace of transformation at the wholesaler is finally quickening, replacing a period of pandemic-induced firefighting
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ittle did Yancey Jones and Mike Maggio know when they acquired S.P. Richards (SPR) from Genuine Parts Company (GPC) in June 2020 that what was happening at the time would turn out to be so much more than a temporary global health crisis. To say they had their work cut out dealing with the many and varied pandemic challenges over the best part of two years would be an understatement. As such, their vision – to become a distribution company to all customers offering all products they might feasibly want – had to be put on the backburner. Surviving and facilitating their customers’ survival became paramount. Jones and Maggio need no introduction as regards their credentials to meet the obstacles they faced. But as Executive Chairman and President/CEO respectively of SPR, they’ve certainly required their combined 90+ years of industry experience to steer the wholesaler into calmer waters. In the process, their vision didn’t get blurred, however, as OPI CEO Steve Hilleard found out when he caught up with these two unflappable industry veterans. Coupled with a sharp appreciation of what was important at any given point during an intensely difficult period, that vision became even more focused. And finally now, there’s light at the end of the tunnel as the new world of work is beginning to take shape, with all the repercussions it will bring to SPR, its customers and the industry at large.
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OPI: When you entered into this transaction with GPC to buy SPR, you can’t have imagined in your wildest dreams the dramas to come? Yancey Jones: Absolutely not. In June 2020, just before the transaction closed, we had seven banks that were all very excited about the future. So were we. We thought COVID was over. Sales were good in July and August. But then September came,
COVID was back. All the schools – in fact, almost everything – shut down again. Overall, 2020 was not a banner year for us, with some areas down 40%. Luckily, we also had some categories that were up 30% – our jan/san business was booming and helped us through the second half of 2020, and the same was the case for PPE. We certainly didn’t expect to sell millions and millions of dollars worth of face masks overnight when we first invested in SPR. We were in the same boat as everybody else – supply chain issues and difficulty getting products. There was plenty of inventory, just not the right inventory. OPI: Mike, those pandemic issues aside, what else would you highlight that perhaps you hadn’t anticipated following the acquisition? Mike Maggio: As you know, we had significant plans to change the way we go to market and also how our customers and the manufacturers look at us as a partner. COVID got in the way of those plans. The attitude was: let’s get through this, survive and then start again. We always knew it was going to be difficult to wean ourselves from GPC, not for Yancey and I, but for the organisation, and that turned into an even bigger challenge because the pandemic has lasted for so long.
