What a deal! Webb, holding a very attractive position in Ohio and western PA, is combining with Heritage Distribution, backed by Beijer Ref.
This transaction truly exemplifies the power of strategic alignment of two organizations. And there is so much more to like about the deal beyond the strategy.
First…the Why
Webb had been a family-owned business for generations and the business was thriving. As the business grew, it became increasingly important for the family owners to consider strategic partnerships to ensure the maximum potential for Webb, its many employees and customers alike. As our team got to know the Webb business, culture, and the direction it was heading, it certainly became clear that it would take a special partner, one who would see the value and be able to build on an already strong market position, to get the right deal done.
Next…the How
Following a rigorous preparation and development of the Webb story, including unearthing everything about this opportunity we believed would resonate among the strongest potential partner candidates, we developed a very targeted list of options. This included merger candidates, private equity firms and strategic players, all tiered through our experience, relationships and tactics. We shared our view, discussed, studied and re-studied every option, weighing the pros, cons and risks of each. Ultimately, we finalized and proceeded with our discussions under a framework of the highest confidentiality, professionalism and integrity. It was an honor to have these discussions as well as the strong Webb management team to assist when necessary.
Importantly, the job of the advisor is to balance the risk of engaging various parties who appear to be interested. Reputations matter. While there was significant interest in partnering with Webb, the strongest interest and authenticity emerged in our discussions and collaboration with…
Finally…the Who
Headquartered in Atlanta, Heritage Distribution Holdings is a collection of former family-owned HVACR distribution businesses. Backed by Beijer Ref (listed in Sweden and the largest global provider of HVACR products), Heritage has a tremendous reputation and market positions across the Southeast, Midwest and Great Plains regions of the United States.
One of the unique aspects of Heritage, which we believed played a key role in winning this transaction, is its commitment to not just preserving the culture and employee base, but enhancing these important elements of a business. The ownership of Webb placed a high degree of importance on the quality of the buyer on this measure and Heritage really distinguished itself here.
With this combination, Webb brings a strong position in the upper midwest and strengthens vendor relationships at the Heritage level. Webb will benefit by combining forces with one of the largest strategic and growing players in this industry. The many strategic benefits of this partnership will unfold in the years to come.
We are thrilled with this outcome.
