House-Hasson Hardware finalizes acquisition of Bostwick-Braun
America's largest independent regional hardware distributor, has finalized its acquisition of former Midwestern U.S. wholesale hardware distributor Bostwick-Braun Hardware's warehouses and inventory.
The acquisition adds to House-Hasson two warehouses in Indiana and Arkansas as well as more than 45,000 stock keeping units (SKU) to its existing 55,000 SKU inventory. The facility, inventory and employee expansion will give House-Hasson a springboard to strengthen its position in multiple states and to grow its independent hardware store and lumberyard customer base in states it hasn't previously served.
"Our focus is dealer profitability, and that focus is the reason for this acquisition," said Steve Henry, House-Hasson president and CEO. "We're adding the Arkansas warehouse to our existing ability to serve customers in Texas, Louisiana, Arkansas, and other Southwestern states. The Indiana warehouse opens opportunities for us in Indiana, Ohio, Pennsylvania, New York, Michigan, and other states in the Northeastern region."
"Independent hardware stores and lumberyard dealers have a great future," Henry said. "The need for them is growing every day. They provide an unmatched level of local service and responsiveness to their customers. We're proud to serve them, and now we'll be able to serve them even better."
A due diligence process has been underway since the acquisition letter of intent was signed on Tuesday, March 19, 2024. The deal was finalized on Friday, June 28. Terms of the cash sale are private between the parties.
"Our corporate policy has long been not to borrow money to finance acquisitions," Henry said. "Our debt-free status gives us great latitude and flexibility to act on behalf of our dealers' best interests."
To this point, House-Hasson has served customers in 23 states and the Caribbean Basin from its 500,000-square-foot headquarters warehouse in Knoxville, Tenn., and 250,000-square-foot warehouse in Prichard, W. Va. Adding to its operations the former Bostwick-Braun warehouses in West Helena, Ark., and Ashley, Ind., gives House-Hasson a total of approximately 1.3 million square feet of warehouse, receiving, shipping, and administrative space.
Additionally, 75 former Bostwick-Braun employees have transitioned into the House-Hasson workforce, bringing the total number to 532 House-Hasson employees serving dealers from the company's now four locations.
"We're delighted to have these great people join us," Henry said. "Throughout the due diligence process we've been impressed with their work and that they understand and want to be part of our focus on dealer service and profitability."
