Colonial Commercial Corp. Buys RAL Supply
RAL Supply Group is headquartered in Middletown, N.Y., and has five other facilities in the towns of Fishkill, New Windsor, Poughkeepsie and Suffern, N.Y., and Peekskill, Mass. RAL was recognized as SUPPLY HOUSE TIMES’ Wholesaler of the Year in 1981 and again in 1991.
Colonial is a holding company with two HVAC distribution firms as operating subsidiaries: Universal Supply Group, Inc. and American/Universal Supply Inc. The companies have 12 branches in New Jersey (8), New York (3) and Pennsylvania (1), with annual revenues totaling around $58 million. Colonial is a NASDAQ public company traded under the symbol CCOM.
The undisclosed purchase price was to be based primarily on book value and determined at closing, which was expected by mid-October. Colonial said RAL would continue operating as The RAL Supply Group, Inc. as a wholly-owned subsidiary.
William Pagano, president of Universal Supply Group, said his organization was attracted to RAL’s strength in HVAC and hydronic heating, which comprises about 50-60% of RAL’s sales volume. “Their geographic locations fit in nicely,” said Pagano. He noted that Universal is a leader in the design of direct digital control systems and systems that control multi-location facilities through the Internet, and “we’re hoping to expand our controls business through the RAL branches.”
RAL is also known as a distributor of high-end plumbing, and operates the RAL Bath Showplace in New Windsor, N.Y. Pagano said his company didn’t target RAL with an eye toward expanding into plumbing distribution, but “we’ll watch where that goes.” Pagano expected most of RAL’s operations people to remain with the company.
RAL President David Berman was unavailable for comment as we went to press.
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