Essendant

Last updated

Essendant Inc.
Company type Private
Nasdaq: ESND
Industry Wholesale Distribution
Founded1922;102 years ago (1922)
Headquarters Deerfield, Illinois, United States
Key people
ProductsBusiness products, office supplies, electronics, furniture, industrial, janitorial, automotive
RevenueIncrease2.svg $5.369 billion (2016) [1]
Owner Sycamore Partners
Number of employees
6,400 [2]  (2017)
Website www.essendant.com
Footnotes /references
[3]

Essendant Inc., formerly known as United Stationers, is a national wholesale distributor of office supplies, with consolidated net sales of $5.3 billion. Essendant serves 30,000 reseller customers and stocks over 160,000 items, including traditional office products, office furniture, janitorial and break room supplies, industrial supplies, and technology products. Essendant is headquartered in Deerfield, Illinois and also has operations in Dubai, United Arab Emirates (UAE).

Contents

Distribution

Essendant's network of 20+ distribution centers allows the company to ship most products overnight to more than 90% of the U.S. [4] and next day delivery to major cities in Canada. [5]

Essendant services and distributes 2,000 brands and 80,000 SKUs across all major channels [6] to their customer base of 30,000 resellers. [5]

History

Essendant was incorporated in 1922 under the name Utility Supply Company in Chicago by partners Harry Hecktman and Morris Wolf. During the early 1930s, the company published its first office products catalog. The concept was such a success that the business was further expanded with the opening of its first retail store in 1937. In the early 1950s, in addition to its catalog and retail operation, management recognized growing opportunities in the office products wholesale business. In 1970, the company opened its first distribution center. As time passed, the company found it difficult to compete as both a retailer and wholesaler. So, in 1978, the retail operations were sold and the company began to operate exclusively as an office products wholesaler.[ citation needed ]

Essendant incorporated and went public in 1981 as United Stationers Inc. (USTR) on the NASDAQ. In 1984, the company established MicroUnited to capitalize on the growth in the computer supplies sector. The company's MicroUnited division focused on the distribution of peripherals and supplies to computer products resellers.[ citation needed ]

In June 2002, the company announced that, as part of its succession plan, Richard W. Gochnauer, would become the company's chief operating officer and a member of the board of directors upon his start at the company in July. [7]

In September 2008, the company pioneered the use of data analytics to illustrate the Value of Wholesale to distribution (aka VOW Program).

In December 2010, the company announced that P. Cody Phipps, the company's chief operating officer, would become president and CEO when Richard W. Gochnauer, CEO, retired at the annual shareholders’ meeting in May 2011. [8]

In April 2015, the company announced the departure of P. Cody Phipps, the company's chief executive officer, and Director Robert Blaine Aiken Jr. would take over as interim CEO. In early 2015, the company re-branded from United Stationers to Essendant. The new company name became effective in June 2015. The company's symbol on the NASDAQ Global Select Market changed from USTR to ESND. [9]

In July 2015, Essendant announced that its board of directors appointed Robert B. Aiken Jr., president and CEO effective immediately. Aiken, who had been serving as interim president and CEO since May 2015, would continue as an Essendant board member. [10]

On October 25, 2017, the board of directors elected Richard D. Phillips president and chief executive officer, effective immediately. Mr. Phillips, who had been serving as interim president and CEO since June 2017, was also elected to Essendant's board of directors and the board's executive committee. [11] January 31, 2019, the board announced that Harry Dochelli had been named president. [12] [13] [14]

In May 2024, Harry Dochelli announced his retirement and Dave Boone, former CEO of Staples Canada, was named interim CEO in his stead. Dochelli will remain on as an advisor until December 2024. [15]

In June 2024, Essendant launched Connected Commerce, an ecommerce, fulfillment and third-party logistics platform. [16] Connected Commerce services are intended to serve companies in business-to-business (B2B), business-to-consumer (B2C), and business-to-business-to-consumer (B2B2C). [6]

Mergers and acquisitions

As competition in the late 1980s intensified within the office products industry, consolidation at all levels of the industry became commonplace. In June 1992, the company acquired Stationers Distributing Company, a $425 million office products wholesaler in Fort Worth, Texas. This transaction made the company a $1.5 billion wholesale distributor.[ citation needed ]

In March 1995, the company acquired Associated Stationers, a $475 million general line wholesaler. Three years later, on April 3, 1998, the company acquired Azerty, a $350 million wholesaler of computer consumables. Azerty was founded in April 1983 by Marvin Frackt as the US subsidiary of Inter City Papers Limited of Montreal, Quebec, Canada. Bill Dueger was the first manager of Azerty, reporting to Marvin Frackt. Subsequently, the company's MicroUnited division was merged into Azerty. In July 2000, Essendant increased its geographic penetration in Canada by purchasing Azerty Canada, a $115 million computer consumables business.[ citation needed ]

To expand their line of business, on October 31, 1996, the company acquired Lagasse Bros., Inc., a wholesaler of janitorial and sanitation supplies. In January 2001, the company completed the acquisition of Peerless Pape to broaden the Lagasse division's reach. [17]

In May 2005, Lagasse completed the purchase of Sweet Paper, which expanded Lagasse's product line and enhanced its scale and infrastructure in key markets. [18] The company decided to sell its Canadian division in March 2006, and completed the sale of certain assets associated with its Canadian division three months later. [19] [20]

The company acquired ORS Nasco, on December 21, 2007. [21] On March 1, 2010, the company acquired their first technology company, privately owned MBS Dev, a Colorado-based software provider. [22] In November 2012, the company signed a stock purchase agreement to acquire 100% of the outstanding shares of O.K.I. Supply Co. (O.K.I.) for an all-cash purchase price of $90 million. [23] On May 29, 2014, the company announced that its wholly owned subsidiary, United Stationers Supply Co., signed an agreement to acquire 100 percent of the outstanding shares of CPO Commerce, Inc., for an all-cash purchase price of $30 million, with up to an additional $10 million to be paid in three years based on performance. [24]

On October 31, 2014, the company completed the acquisition of Liberty Bell Equipment Corporation, a United States wholesaler of auto aftermarket tools and supplies, and its affiliates (collectively, "MEDCO") including G2S Equipment de Fabrication et d'Entretien ULC ("G2S"), a Canadian wholesaler. [25] On December 17, 2014, the company announced the sale of MBSDev to ProjectAX. [26] On August 3, 2015, The company completed the acquisition of Nestor Sales LLC., a wholesaler and distributor of tools, equipment and supplies to the transportation industry. [27] On January 31, 2019, Staples, Inc., [28] announced that an affiliate of Sycamore Partners (which owns Staples) has acquired Essendant, [29] a national wholesale distributor, [30] in an example of vertical integration.

Further reading

Related Research Articles

<span class="mw-page-title-main">Save A Lot</span> American retail and grocery company

Save A Lot Food Stores Ltd. is an American discount supermarket chain store headquartered in St. Ann, Missouri, in Greater St. Louis. It has about 900 independently owned and operated stores across 32 states in the United States with over $4 billion in annual sales.

<span class="mw-page-title-main">Staples Inc.</span> American multinational office supply retailing corporation

Staples Inc. is an American office supply retail company headquartered in Framingham, Massachusetts.

<span class="mw-page-title-main">Alliance Healthcare</span> European health products distributor

Alliance Healthcare, formerly Alliance UniChem, is a wholesaler, distributor and retailer of pharmaceutical, surgical, medical, and healthcare products throughout Europe. The company supplies more than 110,000 pharmacies, doctors, health centres, and hospitals from over 288 distribution centres in 11 countries.

<span class="mw-page-title-main">Cardinal Health</span> American multinational health care services company

Cardinal Health, Inc. is an American multinational health care services company, and the 14th highest revenue generating company in the United States. Headquartered in Dublin, Ohio, the company specializes in the distribution of pharmaceuticals and medical products, serving more than 100,000 locations. The company also manufactures medical and surgical product, including gloves, surgical apparel, and fluid management products. In addition, it operates one of the largest networks of radiopharmacies in the U.S. Cardinal Health provides medical products to over 75 percent of hospitals in the United States.

Ferguson plc was an American-British multinational plumbing and heating products distributor. In August 2024, it merged into Ferguson Enterprises.

Cencora, Inc., formerly known as AmerisourceBergen, is an American drug wholesale company and a contract research organization that was formed by the merger of Bergen Brunswig and AmeriSource in 2001. It is considered one of the largest pharmaceutical companies in the world and distributes generic pharmaceuticals, over-the-counter healthcare products as well as home healthcare supplies and equipment.

SpartanNash Company is an American food distribution and retail company headquartered in Byron Center, Michigan. The company was founded in 1917 and was formerly known as Spartan Stores until it adopted its current name on November 19, 2013 following a merger with Nash Finch Company. The company's core businesses include distributing food to independent grocers, military commissaries, and corporate-owned retail grocery stores in 44 states, Europe, Latin America, and the Middle East.

<span class="mw-page-title-main">Graybar</span> American electronics distribution company

GraybarElectric Company, Inc. is an American wholesale electrical, communications and data networking products distribution business, which also supplies related supply-chain management and logistics services. The company is based in Clayton, Missouri and is an employee-owned corporation.

<span class="mw-page-title-main">Sysco</span> American distribution company

Sysco Corporation is an American multinational corporation involved in marketing and distributing food products, smallwares, kitchen equipment and tabletop items to restaurants, healthcare and educational facilities, hospitality businesses like hotels and inns, and wholesale to other companies that provide foodservice. The company is headquartered in the Energy Corridor district of Houston, Texas. Sysco is the world's largest broadline food distributor; it has more than 600,000 clients in a wide array of fields. Management consulting is also an integral part of their services. The company operates approximately 330 distribution facilities worldwide; providing service to over 90 countries.

Ingram Content Group is an American service provider to the book publishing industry, based in La Vergne, Tennessee. It is a subsidiary of Ingram Industries.

<span class="mw-page-title-main">Tech Data</span> U.S.-based technology company

Tech Data Corporation was an American multinational distribution company specializing in IT products and services headquartered in Clearwater, Florida. It merged with competitor Synnex to form TD Synnex. Synnex is to be the primary owner. Tech Data provided a broad range of product lines, logistics capabilities and value-added services that enable technology manufacturers and resellers, such as Google, Apple, Cisco, Dell, Fortinet, Hewlett Packard Enterprise, HP Inc., IBM, Lenovo, LG, Microsoft, Sony, Trend Micro, Viewsonic, TP-Link and VMware, to deploy IT solutions.

Avnet, Inc. is a distributor of electronic components headquartered in Phoenix, Arizona, named after Charles Avnet, who founded the company in 1921. After its start on Manhattan's Radio Row, the company became incorporated in 1955 and began trading on the New York Stock Exchange in 1961. On May 8, 2018, Avnet changed stock markets to Nasdaq, trading under the same ticker AVT.

<span class="mw-page-title-main">Genuine Parts Company</span> Auto/industrial/electronic parts

Genuine Parts Company (GPC) is an American company engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials. GPC serves numerous customers from more than 2,600 operations around the world, and has approximately 48,000 employees. It owns the NAPA Auto Parts brand.

Henry Schein, Inc. is an American distributor of health care products and services with a presence in 33 countries. Ethisphere named Henry Schein as one of the 2024 World's Most Ethical Companies for the 13th consecutive year. For eight consecutive years, the company has received the Equality 100 Award: Leader in LGBTQ+ Workplace Inclusion by the Human Rights Campaign Foundation.

<span class="mw-page-title-main">The Home Depot Pro</span> U.S. wholesale distributor

The Home Depot Pro, headquartered in Jacksonville, Florida, is a wholesale distributor and direct marketer of maintenance, repair and operations (MRO) products for non-industrial businesses in the United States. The Home Depot Pro distributes products such as HVAC, janitorial supplies, plumbing supplies, and security supplies.

<span class="mw-page-title-main">Bunzl</span> British multinational distribution and outsourcing company

Bunzl Public Limited Company is a British multinational distribution and outsourcing company headquartered in London, England.

Univar Solutions Inc.(formerly Royal Vopak) is a global chemical and ingredients distributor and provider of value-added services.

<span class="mw-page-title-main">Activant</span> American technology company

Activant Solutions Inc. was a privately held American technology company specializing in business management, software serving retail and wholesale distribution businesses headquartered in Livermore, California.

Dentsply Sirona Inc. is an American dental equipment manufacturer and dental consumables producer that markets its products in over 120 countries. It has factories in 21 countries. The present company is largely the result of a merger in 1993 in which Gendex Corporation acquired Dentsply International Inc. for $590 million.

Beacon Roofing Supply, Inc. is an American publicly traded company which sells residential and non-residential roofing products, as well as related building products in North America. As of December 31, 2023, the company has 533 locations throughout all 50 states in the U.S. and six Canadian provinces, and over 8,000 employees. In addition to roofing, local divisions may also sell windows, siding, decking, waterproofing and other external building products. The company is currently headquartered in Herndon, Virginia.

References

  1. ↑ "Requested symbol wasn't found".
  2. ↑ "Essendant". Fortune. Archived from the original on January 9, 2019. Retrieved January 8, 2019.
  3. ↑ "About Us". Essendant. Retrieved September 9, 2024.
  4. ↑ Howland, Daphne (September 18, 2018). "Staples buys workplace vendor Essendant for $996M". Retail Dive. Retrieved August 26, 2024.
  5. 1 2 "United Stationers / Essendant". Library of Congress, Washington, D.C. 20540 USA. Retrieved August 26, 2024.
  6. 1 2 Brohan, Mark (July 15, 2024). "B2B distributor Essendant reinvents itself through Connected Commerce, digital transformation". Digital Commerce 360. Retrieved September 11, 2024.
  7. ↑ "United Stationers Names Gochnauer as Chief Operating Officer".
  8. ↑ "Adobe Executive Guide_2".
  9. ↑ "United Stationers Changes Name to Essendant, Repositions for the Future". Archived from the original on February 6, 2016.
  10. ↑ "Sycamore Partners Affiliate Acquires National Wholesale Distributor" (Press release). January 31, 2019.
  11. ↑ "Essendant Names Richard D. Phillips President And Chief Executive Officer" (Press release).
  12. ↑ "When Harry met Sandy". February 27, 2019.
  13. ↑ "2019 Top 100". September 30, 2019.
  14. ↑ "Sycamore Completes Essendant Acquisition".
  15. ↑ "Essendant Announces Interim CEO". CleanLink. Retrieved November 20, 2024.
  16. ↑ "Essendant Launches Connected Commerce". Distribution Strategy Group. June 27, 2024. Retrieved December 4, 2024.
  17. ↑ "Peerless Paper is acquired by Lagasse Bros., Inc., a subsidiary of United Stationers, Inc". April 10, 2023.
  18. ↑ "Lagasse, Inc. to Purchase Sweet Paper Sales". Archived from the original on January 12, 2017.
  19. ↑ "United Stationers has sold Azerty to Synnex Corporation". Lincoln International. Retrieved August 17, 2020.
  20. ↑ www.sec.gov. p. 29 https://www.sec.gov/Archives/edgar/data/355999/000104746908002036/a2182993z10-k.htm . Retrieved August 17, 2020.{{cite web}}: Missing or empty |title= (help)
  21. ↑ "United Stationers to Buy ORS Nasco for $180M". Archived from the original on March 17, 2016.
  22. ↑ "United Stationers Acquires MBS Dev".
  23. ↑ "United Stationers to Acquire O.K.I. Supply".
  24. ↑ "United Stationers Completes Acquisition Of CPO Commerce". Archived from the original on March 1, 2016.
  25. ↑ "United Stationers Acquires MEDCO".
  26. ↑ "United Stationers Sells MBS Dev".
  27. ↑ "Essendant Closes on Acquisition of Nestor Sales LLC". August 3, 2015.
  28. ↑ "Essendant tapping into Staples' resources". October 15, 2019.
  29. ↑ "Essendant Unveils Email And Personalization Tools For Resellers".
  30. ↑ "Staples Acquires Essendant in $996 Million Deal". Archived from the original on August 16, 2019.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.