Foodservice Equipment & Supplies

APR 2017

Foodservice Equipment & Supplies magazines is an industry resource connecting foodservice operators, equipment and supplies manufacturers and dealers, and facility design consultants.

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26 • FOODSERVICE EQUIPMENT & SUPPLIES • APRIL 2017 S ales among the top 100 foodservice equipment and supplies dealers totaled $9.022 billion in 2016, up 14.85 percent from $7.84 billion in 2015, according to FE&S' 2017 Distribution Giants study. Eighty-one percent of the top 100 dealers reported increased sales. And 14 percent reported a decline in sales. Looking more closely at the revenue from FE&S' 2017 Distribution Giants study, the large dealers, those with annual revenues of more than $100 mil- lion, saw sales increase 50 percent last year. And the number of dealers with more than $100 mil- lion in annual revenues has almost doubled in the past 5 years — going from 10 companies in 2011 to 19 companies in 2016. Last year 2 dealers broke the $100 million barrier — QualServ Solutions and KaTom. And at more than $90 million in sales, The Sam Tell Companies seems poised to join the $100 million club next year. TOP DEALERS In 2016, those 19 dealers with more than $100 million in annual revenues accounted for 71 percent of the revenue among the top 100. This represents a 9 percentage point increase compared to 2015 and a 19 percentage point increase compared to 2011. In fact, the top three dealers by sales volume — TriMark USA, Clark Associates and Edward Don & Company — accounted for 36 percent (or $3.26 billion) of the sales generated by the top 100 dealers. This represents a 12 percent increase from 2011. In terms of dollar growth, TriMark USA led all dealers at $348 million. This was fueled by organic growth as well as the acquisitions of R.W. Smith, which reported revenues of $101 million in 2015, and Adams Burch, which FE&S esti- mated had sales of $29 million in 2015. (TriMark's figures do not include the acquisition of Hockenbergs, which was announced earlier this year. Hockenbergs reported an $8 million increase in sales for 2016, which brought its total revenue to $194 million, placing the Nebraska dealer eighth among the top 100.) TriMark's dollar growth alone would make it the sixth largest dealership in the country. In addition, Clark Associates grew by $273 million. All of this appears to be organic as the company did not report any acquisitions in 2016. And the dollar value of Clark's growth alone would make it the seventh largest dealership in the country. Expect competition among the large dealers to get even more intense moving forward, both in terms of competing for sales and in the mergers and acquisitions arena. Private equity firm Vestar Capital purchased an equity stake in Edward Don & Company to fund the dealer's "future growth with a primary focus on geographic expansion and acquisi- tions." Edward Don & Company's sales increased by an im- pressive $58 million in 2016, but the company was still third behind TriMark and Clark Associates in this metric. FE&S ' 2017 DISTRIBUTION GIANTS By the Editors

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