WILLMAR -- A purchase agreement has been reached for Minnesota Electric Supply Company to be sold to Border States of Fargo, N.D.
The announcement was made Monday.
The sale is scheduled to become final on April 1.
"I think it's an opportunity that has come along," said Steve Linder, owner and chairman of the board for Minnesota Electric Supply. "We could see there would be a lot of synergy by combining these two companies. ... It's a good thing for both companies."
Minnesota Electric Supply Company is a wholesale distributor of electrical supplies to residential and commercial contractors. The company, with headquarters in Willmar, has eight locations and does business across most of Minnesota.
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Border States provides products and services to the construction, utility, industrial and data communication markets.
The merger of the two companies will create an entity with more than 1,200 employees and 51 branch operations in 11 states, plus Mexico.
Minnesota Electric Supply Company will keep its name, with the addition of the tag line, "a division of Border States."
Tammy Miller, CEO of Border States, said in a statement issued Monday that Border States and Minnesota Electric are "a perfect fit."
"We both understand the value of hard work and invest heavily in our employees, facilities and equipment to provide our customers the knowhow and technical support they need," she said.
Border States is owned by its employees under an employee stock ownership plan; it's one of the 100 largest privately owned companies held by an employee stock ownership plan in the United States.
Linder said Border States has "a very compatible culture" with Minnesota Electric and its employees and customers.
"There are a lot of things about Border States that we like," he said.
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Minnesota Electric's 130 employees were told of the sale Monday. Linder -- whose grandfather, Harry Linder, founded the company in 1945 with business partner M.R. Oman -- also traveled to each of the company's sites Monday to answer questions.
No major changes are planned, Linder said. "I don't think they're going to see any changes immediately. I think they are going to see some benefits."
Indeed, the sale will enable Minnesota Electric Supply Company to increase its ability to be competitive, he said. "We see it as being able to offer more to the customer."
Minnesota Electric represents 850 vendors and has more than 3,000 customers and upwards of $55 million in annual sales.
The company has recently been positioning itself to expand into the industrial market and to break into the commercial and residential telecommunications market as well.
