Colony Hardware Corporation
Bringing Excellence to the Ordinary
In July 2007, AEA Enterprise Partners (“AEA Enterprise”) partnered with Colony Hardware Corporation (“Colony”), a leading route-based specialty distributor of safety equipment, power tools and other consumables to multiple trades of contractors. By building a unique culture that enabled its differentiated service capability, Colony’s ability to save its customers time and money was unmatched by competitors, priming the company for transformative growth.
AEA Enterprise recognized Colony had built a sustainable competitive advantage that could be expanded well beyond its 2-location New England footprint with its unique hub-and-spoke, route-based fulfillment model. The Colony founders partnered with AEA Enterprise to fuel organic growth and capitalize on several attractive strategic acquisitions. Despite being hit with the Great Recession immediately after making the investment, the power of the Colony model enabled multi-regional acquisition and greenfield expansion. Under AEA Enterprise’s ownership, Colony substantially expanded its geographic footprint in the Northeast, Mid-Atlantic and Upper Midwest regions fueled by organic growth, the completion of six acquisitions and opening of two greenfield branches, taking the company from two to ten locations. AEA Enterprise also worked with management to develop an e-commerce and digital expansion strategy which successfully generated incremental sales volume. Colony supported this growth by building out a new central distribution center in Orange, Connecticut.
Created Value
6
Complementary acquisitions, including the first-ever for the company
8
New locations opened across the U.S.
2
AEA Enterprise participant board members who provided strategic thought leadership to accelerate both organic and inorganic growth
300k SF
Expansion of distribution and fulfilment facilities
“We had created a unique solution that commercial contractors wanted in more markets, but we lacked the resources to begin a geographic roll-out. Our partnership with AEA Enterprise provided more than capital – they brought extensive distribution experience, seasoned advisors, and the support to execute our growth strategy through a recession.”