How Waxman expanded its reach through a disciplined M&A strategy.
By the early 1980s, Waxman Industries was a respected national distributor – but the leadership saw more opportunity. Growth through acquisition could instantly expand product lines, open new regions, and cement the company’s place in the competitive home improvement market.
Situation
The home improvement sector was consolidating, and competition was intensifying. Larger rivals were offering wider product assortments and greater geographic reach. Waxman needed to scale quickly to compete for major retail contracts.
Strategy
Adopt a targeted acquisition strategy focused on companies that would bring complementary product categories, new geographic coverage, established customer relationships, and operational efficiencies through integration.
Execution
- 1984: Acquired Barnett Brass & Copper for $12.5M, gaining a thriving mail-order plumbing and electricalbusiness.
- 1985: Purchased LeRan Gas Products for $3.7M to expand into gas and heating supplies.
- 1986: Added Select-Line Products and Keystone Franklin, boosting electrical and ceiling fan accessorylines.
- Acquired Medal Distributing and Singer Hardware to strengthen regional distribution hubs.
Results
These acquisitions grew Waxman’s catalog to thousands of SKUs, expanded its customer base nationwide, and increased bargaining power with suppliers. The PlumbCraft, Electracraft, and Fancraft brands became household names.
Key Facts
- Acquisition Period: 1984-1986
- Flagship Purchase: Barnett Brass & Copper
- Outcome: Nationwide reach and expanded product portfolio
Legacy & Lessons Learned
Strategic acquisitions allowed Waxman to leapfrog organic growth timelines, proving that well-chosen deals can accelerate scale without diluting brand quality.