The sale of Todd Pipe and Standard Wholesale in Las Vegas to Hughes Supply in 2004 created the opportunity for this sale, Shoen said.
“The market goes through different cycles,” he explained. “There was a huge burst of acquisition activity in the mid- to late-90s, then it slowed down. It picked up again recently. The increase in acquisition activity created an environment where I started getting phone calls about my company,” Shoen said. The Las Vegas market is fairly small; Kelly's Pipe & Supply has been one of the larger players, he noted.
“I talked to several different people,” Shoen said. “I felt Hajoca was the best fit for my company. This acquisition enables us to continue doing business in the same way we have done since 1960. Hajoca is a confederacy of independent businesses. Not a whole lot has changed, but now we have stronger financial backing. Employees will have greater opportunities for advancement. Further expansion of our business is possible.
“The main reason for selling to Hajoca was to enable Kelly's Pipe & Supply and the showrooms (European Bath, Kitchen, Tile & Stone) to continue as close to 'business as usual' as possible,” Shoen said.
- Pat Lenius