Ferguson purchased 13 companies in fiscal year 2016. The acquisitions spanned coast-to-coast and multiple business types, including waterworks, plumbing, fire and fabrication and MRO, in addition to e-commerce companies and appliance and lighting showrooms.
“We added many reputable companies with talented associates to our portfolio this year,” said Ferguson CEO Frank Roach. “Our acquisition pipeline is strong, and we will continue to look for companies that integrate seamlessly with our core businesses and align with our corporate culture and values.”
Geographic expansion is also important to Ferguson’s acquisition strategy. The company focuses on markets where Ferguson has a limited presence or high-potential markets.
Entry into Michigan waterworks market through acquisition
Ferguson Waterworks, the industry’s largest waterworks distributor, acquired three Michigan-based waterworks companies – Michigan Pipe & Valve; Michigan Pipe & Valve; and Michigan Meter Technology Group in June and July. The acquisitions expand Ferguson’s geographic footprint in the upper Midwest and provide a full waterworks offering in the state.
Ferguson Waterworks now has Michigan locations in Flushing, Kalamazoo, Lansing, Warren and Madison Heights. The locations offer industry-leading meter lines and service, and with the acquisition of Michigan Meter, Ferguson Waterworks is now the sole distributor of Neptune Water Meters and AMI/AMR in Michigan.
“Our entry into the Michigan waterworks market is a good example of a bolt-on acquisition in a geography Ferguson was not currently servicing,” Roach added. “More importantly, we are pleased to welcome the knowledgeable associates of these three companies to the Ferguson family, and look forward to establishing strong customer relationships in the upper Midwest.”
Ferguson’s fiscal year ended July 31. Full financial results will be released on Sept. 27.
Company acquires Westfield Lighting
In related news, Ferguson announced the acquisition of Westfield Lighting Co. Inc. (Westfield Lighting) in an asset transaction completed Aug. 29. Ferguson will conduct business from the former Westfield Lighting location as Westfield Lighting, a Ferguson enterprise.
The company has a 10,000-square-foot showroom located on the north side of Indianapolis in Westfield, Ind. It has been in business for more than 37 years and is owned by Mike and Nancy Hutson, who purchased the company in 2004.
“Westfield Lighting is a great addition to our showroom business in the Indianapolis area,” Roach added. “We look forward to continuing the company’s tradition of providing exceptional customer service as we expand our lighting presence in the local market.”
Ferguson continues to grow its lighting business nationwide. It acquired Andrews Lighting Gallery earlier this year. The company operates 270 showrooms nationwide known as Ferguson Bath, Kitchen & Lighting Galleries. The showrooms offer lighting, appliances, and bath and kitchen faucets, fixtures and accessories. They are well known for their knowledgeable product experts and customer service.