DeWITT — Liberty Electric Sales Inc., a DeWitt–based manufacturer’s-representative agency, has acquired Empire State Sales Co. of Saratoga Springs. The transaction closed Aug. 1, says Edward (Ed) McMahon, president and sole owner of Liberty Electric Sales. He declined to disclose the acquisition cost. The local firm announced the acquisition in a July 29 […]
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DeWITT — Liberty Electric Sales Inc., a DeWitt–based manufacturer’s-representative agency, has acquired Empire State Sales Co. of Saratoga Springs.
The transaction closed Aug. 1, says Edward (Ed) McMahon, president and sole owner of Liberty Electric Sales. He declined to disclose the acquisition cost.
The local firm announced the acquisition in a July 29 news release. McMahon spoke with CNYBJ on Aug. 14.
Liberty Electric Sales operates in a 12,000-square-foot office that the firm owns at 113 Twin Oaks Drive in DeWitt, off Route 298 between Carrier Circle and Military Circle.
Liberty Electric Sales is a manufacturer’s representative (rep) in the electrical; heating; heating, ventilation, and air conditioning; and mechanical industry, according to its website.
The firm focuses on “technical” products for electrical wholesalers and industrial end-users, says McMahon.
“We represent a lot of leading manufacturers in … electric heat, piping and wire solutions,” he adds.
When asked what Liberty Electric acquired in the deal with Empire State Sales, McMahon replies, “It’s hard to say with [manufacturer’s] rep firms.”
The acquisition doesn’t involve a customer list because “[both firms] deal with the same people,” says McMahon. But Empire State Sales transferred its representative contracts to Liberty Electric, he adds.
Manufacturing-representative contracts have a 30-day duration, he says. McMahon explained the motivation behind the deal.
“Whenever you have a rep firm, you need to have a succession plan,” he says.
Dan Gosier, owner of Empire State Sales, is a “little older” and was the only employee handling outside sales, McMahon says. Gosier also employed two inside sales representatives.
Liberty Electric Sales employs five outside salespeople, and they’re a “much younger group.”
In the manufacturing-representative industry, company principals like to have a “long-term plan” in place, says McMahon. “So that [for] their investment in training and investment in the territory … they’ll get a return on it because people are going to be here for a while and they’re younger and little more aggressive.”
Moving forward
The acquisition discussion started a few months ago. “It happened pretty quickly,” says McMahon.
Gosier will continue as a sales manager in the Saratoga Springs office.
“He’s going to continue to call on the accounts that he managed while at Empire,” says McMahon.
Empire, which leases a small office in Saratoga Springs, will retain its name because the two firms focus on different product areas.
Liberty Electric Sales concentrates on electric-heat products. Empire State Sales is a more “service-based” manufacturing representative, focusing on commodity-type products, such as pipe, wire, and fittings.
“Now, we’re going to be able to go to an account and sell them the technical products, along with some of the support products that go along with it,” McMahon adds.
Liberty Electric Sales is servicing more than 500 active customers in New York state, he says, noting the number won’t change that much with the Empire acquisition because their customers are mostly the same companies.
“We have more to sell each one of them now because the lines are combined,” he adds.
About Liberty
Liberty Electric Sales now employs 12 full-time workers, which includes the three employees who work for Empire State Sales, McMahon says.
As a sales-rep firm, Liberty Electric manages more than $30 million in sales annually, he adds.
The company has 15 product lines it can offer customers, he notes.
The website for Liberty Electric Sales lists the firms that provide the products. The products come from companies that include Bennettsville, South Carolina–based Marley Engineered Products; Livermore, California–based Construction Electrical Products; and Balluff Inc., a Florence, Kentucky–based sensor maker.
Most of the products eventually go through distribution, he says.
McMahon’s father launched Liberty Electric Sales in 1987, he says. McMahon has an investment group called the Liberty Group, through which he has also started four additional companies.
Besides Liberty Electric Sales, McMahon also owns two firms in Boston and two in Florida, he says.
He purchased Liberty Electric Sales from his father “about six years ago,” he adds.
