Hajoca Corp. (Ardmore, Pa.) and marketing group Affiliated Distributors, based in King of Prussia, Pa., reached a "mutual and amicable decision" to separate on May 1 of this year, said Bill Weisberg, chairman/CEO of A-D.
"Hajoca is a fine company and we highly respect their management team," Weisberg said. "That said, we all felt that parting ways was in the best interests of both organizations. A-D was created to serve independents and the suppliers who support them. We work for hundreds of distributors and suppliers in four industries. Our plumbing division, post-Hajoca, has almost $4 billion in sales and purchases of plumbing products. But frankly, the key in this economy is not how big you are, it's how much value you provide. Our focus this year is on providing profitable growth for our key suppliers and sharing best practices among our member distributors."
Hajoca, a member of C.L. Watt, became a part of A-D when it merged with C.L. Watt in January 2001 and formed its plumbing division.
Several A-D members contacted by Supply House Times confirmed the amicability of the split with Hajoca.
"It was just a mutual parting of ways," one member said. "This was something decided between A-D and Hajoca."
Hajoca's large size combined with different business philosophies and operating procedures may have played a role in the decision to separate from A-D, another member said.
Hajoca declined to comment.