There have been a number of what one might call business “storms” during the course of the past two-plus years. The most recent one in the world of Carolina Wholesale Group International/ARLINGTON calls for riding the perfect wave as opposed to riding it out.
Larry Huneycutt doesn’t need a surfboard, but the owner of the continuously growing supplies distribution juggernaut has certainly made a splash in recent weeks. In June alone, his company added four businesses to his stable via the M&A route, picking up Cartridge Warehouse of Canoga Park, California in a separate deal before snapping up Blackford Capital’s catalog of distributors—International Toner Company of Buffalo Grove, Illinois; Supplies Wholesalers in Reno, Nevada; and Cartridge World USA of McHenry, Illinois.
We chatted with Huneycutt in the latest installment of Two-Minute Drill for insight into how these deals came together and to see if he has designs on taking over the supplies distribution world…or at least a significant part of it.
It’s not often that a company announces four deals in such a short span. Can you provide some insight into the impetus and timing behind them?
Huneycutt: It was the perfect storm, really. We were approached by Blackford Capitol earlier this year to make an offer on the SW/ITC companies. Coincidently, CWI’s leadership decided to exit the industry and approached us on a takeover opportunity. It was a situation where these acquisitions closed nearly at the same time.
Do you have more prospects under consideration? What are some of the key attributes you’re seeking in a prospective acquisition?
Huneycutt: Not at this time. We have our hands full with these companies. Regarding the key attributes, we are always looking for opportunities that provide an overall value to our already successful brand, ARLINGTON. At the same time, we like the idea of being on the buyer’s side of industry consolidation.
How do these deals change the face of the supplies landscape?
Huneycutt: I’m not sure about this one. Certainly, we hope that ARLINGTON has more opportunities to earn market share. Additionally, we hope the synergies between SW/ITC/ARLINGTON will create a better value for our dealer partners. At the end of the day, we want to provide the best possible service to our partners.
Likewise, how do these deals position ARLINGTON and CWG International moving forward?
Huneycutt: This will be fleshed out in the coming months. It should be an exciting summer at ARLINGTON!
