SPR purchase complete

Further to previous reports, INDEPENDENT DEALER can reveal that Central National Gottesman (CNG) completed the acquisition of S.P. Richards Co. (SPR) as expected on January 31, 2023.

While, at time of going to press, we were yet to receive any further comment from the new leadership at SPR, sources suggest that it will continue to operate as its own independent entity under the CNG umbrella and that it hopes to retain all of the circa 1,300-strong workforce.

As previously stated, CNG senior vice president Bill Meany will become president of SPR, while former executive chairman Yancey Jones and former president and CEO Mike Maggio will continue with the organization in leadership advisory roles. There will be no other changes in the management structure at present, INDEPENDENT DEALER believes.

It is understood that the news owners’ immediate priority is to focus on rebuilding inventory levels, something that the wholesaler is thought to have struggled with since the pandemic. CNG’s existing distribution network, both nationally and internationally will be key to achieving this goal.

The deal has been generally well received by members of the IDC, with commentators citing CNG’s impressive track record in acquisitions, solid financial standing and well-respected, family-led ownership. SPR represents one of CNG’s largest acquisitions to date.

It has also put paid to fears that the company might be sold to a more direct competitor of the IDC, although some have expressed concern that there are categories, such as paper and packaging, in which CNG divisions act as direct resellers.

“I think it’s going to be great for the industry,” said IOPFDA executive director Mike Tucker. “The company has a lot of money, they haven’t had to borrow money for the acquisition, and they are very experienced when it comes to warehouse management and logistics. I think that will prove to be a strength for SPR.”

“I think the chances of a positive outcome from this acquisition are good,” added Mark Leazer, executive director of AOPD. “The industry, and especially the IDC, needs to have strong wholesalers. There was an element of uncertainty around the future of S.P. Richards and this deal will help remove that. It looks like the new owners are leaving a lot of the current team in place to provide some continuity. I see that as mostly positive. There are a lot of strong, experienced veterans who know the industry well still at SPR.”

“I think this is a new and exciting

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“At this point there is more that we don’t know than we know. That’s my usual reaction in these circumstances,” said Mike Gentile, president, and CEO of ISG, sounding a note of caution and optimism. “I am relieved that someone has acquired the business. Yes. Because it removes the uncertainty around S.P. Richards’ future. I am hoping that CNG invests monetary and intellectual capital to the company, SP can have a tremendous future and fill a strategic gap in our industry. A clear and decisive strategic direction is needed . And I hope it brings a different temperament to the company, by which I mean a more positive, collaborative relationship with ISG as a buying group.”

Based in Purchase, New York, CNG is a privately held, $9 billion, global paper, packaging and facilities supplies sales and distribution giant. Its distribution division includes the Lindenmeyr Munroe, Kelly Spicers and Spicers Canada businesses. CNG boasts more than 137 years of family ownership, market knowledge, and adaptability to create value for clients worldwide. It was founded in 1886 and employs 3,100 people in 29 countries around the world.

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