Lee Hite, CEO of The Hite Co., Altoona, Pa., wanted to expand his company’s presence in the Pittsburgh metropolitan area, so when an opportunity developed to purchase the operating business assets of six Hagemeyer North America electrical supply locations, he jumped on it. (See EM, Dec. 23 issue).
When finalized, the purchase will cover Hagemeyer locations in Pittsburgh, Cranberry Township, Castle Shannon, Canonsburg, and Washington, Pa., and Morgantown, W.Va. The Hite Co. will supply inventory to the new locations out of its central distribution center (CDC) in Etna, Pa.
In an exclusive interview with Electrical Marketing this week, Hite said he had planned to increase the company’s presence in the greater Pittsburgh market by opening one more location in Washington, Pa. Hite had opened a location in Etna, Pa., in January 2005.
"We were looking to put in stores," he said. "I was almost ready to open up a store in Washington and we were looking to put in more stores there (Pittsburgh). Then this came along, so the timing was perfect. When you talk about the greater Pittsburgh market, I already have two locations there. So this will now give us eight locations, which gives us a good presence. Even Morgantown, W.Va., is only an hour and 15 minutes away."
Because the Hite name is already recognized in the greater Pittsburgh market, Hite said he plans to change the name of the new locations from Hagemeyer to Hite beginning Feb. 1. Another option would have been to change the name of those locations back to the old Allied Electric name, he said. Tristate Electrical & Electronics Supply Co. Inc., Hagerstown, Md., which is part of Hagemeyer, acquired Allied Electric Supply Co. in 2001.
Hite said Cardello Electric Supply Co. is the only other electrical distributor in the greater Pittsburgh area with as many locations. When this acquisition is finalized, Hite Electric will have 20 locations.
"We are looking to grow and expand," he said. "I hope to be a stronger influence in the market (in Pittsburgh) by the end of next year after these acquisitions. I would have never imagined I would grow to this extent after two years. It takes too long to do it. But going through an acquisition and through the success of our store that we opened in January 2005, obviously we’re way ahead of our projections."