Facilities maintenance distributor Interline Brands (NYSE: IBI) is going to continue building its jan-san platform as a way to stabilize and diversify its end-markets. As it said in a recent investor presentation (both in its quarterly earnings call and a presentation at the Robert W. Baird Industrial Conference), jan-san is a "critical component of overall MRO requirements."
American Sanitary, or AmSan, which Interline purchased in mid-2006, represents about 27% of Interline's sales. The distributor plans to increase efforts to cross-sell jan-san to its core MRO customers, and MRO to existing jan-san customers to "deepen its share" of total spend. The distributor also noted it would be evolving its specialty plumbing business into broader national brands focused especially on institutional customers.
"Opportunistic acquisitions" are also a part of the plan.
Currently, Interline's breakdown by percentage of all products, based on the third quarter, is:
Other Products 9%
Interline's end-markets are split out by:
Multi-family residential/Institutional facilities 75%
Professional Contractors 15%
Specialty Distributors 10%