About the Company:
Founded in 1946, Dealers Supply Company (“DSC”) is a wholesale distributor of HVAC equipment, parts, supplies, and accessories. DSC operates 16 HVAC distribution branches across Georgia and North Carolina, serving contractors throughout the Southeast. Its subsidiary, Aladdin Metal Products, Inc. (“AMP”), designs and manufactures HVAC equipment accessories, including curbs, curb adapters, and a variety of sheet metal products. Since 1959, AMP has supplied HVAC sheet metal products to wholesale distributors serving commercial and residential end markets.
Sell-Side Mandate:
The Lenox Group was approached by the management team to explore strategic options including finding a financial partner or buyer. Lenox generated a market valuation of the business to help the shareholders determine their transaction options and design the most effective process. Lenox was engaged to sell the business and worked closely with the Company to prepare marketing materials, build a financial model, engage a sell-side Quality of Earnings provider, and execute a fulsome sell-side process (including both financial and strategic buyers) to market the Company. Lenox assisted the Company with all phases of negotiation and transaction due diligence.
Outcome:
The Lenox Group ran a highly efficient process and sold Dealers Supply Company to Ferguson Enterprises Inc. (NYSE: FERG), moving from LOI execution to signed Merger Agreement in 35 days. Founded in 1953, Ferguson is North America’s largest value-added distributor of HVAC, plumbing, waterworks, and industrial products, serving both residential and commercial markets. This acquisition supports Ferguson’s long-term growth strategy for its HVAC parts and equipment business.