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CED to Acquire US Electrical Services

CED (Consolidated Electrical Distributors) will acquire US Electrical Services, LLC, Exton, PA,  ; a recently formed distribution holding company lead by former Sonepar USA chief Richard Worthy.  ;   ;   ;
US Electrical Services will be incorporated under a new corporation, US Electrical Services, Inc., which will continue to operate as a separate entity. USESI's founder, Richard Worthy, will continue to lead the company as its CEO, and the US Electrical senior management team will also remain with the company.  ;
I've known Dean Bursch for quite some time," Worthy said,  ; "and have the utmost respect for him and the operating model CED has utilized to build the most successful branch centric electrical distributor in our industry. Their operating model has forged a clean, crisp customer strategy, operating strategy, and employee strategy into a highly successful profit model that has created lasting value for the customer, employee and shareholder alike.

"As we talked it became clear that we share a common, optimistic vision of the electrical distribution industry's evolution, and most significantly, that the regional hub and spoke model that USESI employs was a distinct operating model and skill set that CED did in fact highly value. The last six months of negotiations also proved there is very good chemistry and the personality 'fit' is right.  ; Our many meetings with CED cemented our initial feelings that CED was the right home for USESI."

As part of the transaction, Standard Electric, or SESCO, will come under the USESI umbrella of regional companies along with its current companies EW, Monarch, Weidenbach/Brown, and Lade/Danlar. No other CED business is planned to be part of USESI, he said.
"The two operating models are significantly different and the growth potential of a stand alone USESI through further acquisitions and organic branch openings is very great in its own right," Worthy said.

USESI was founded in early 2006 and has acquired 11 electrical distribution companies, opened 19 new store locations and three Central Distribution Centers.
Worthy says USESI will soon be "back on the acquisition and expansion trail with the full support of CED."

CED is No. 5 on Electrical Wholesaling's list of the Top 200 released in June 2007. According to that list, CED has 5,200 employees and more than 500 locations nationwide.

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