4 | Orgill Case Study Orgill’s Involvement The Wagners had a business relationship with Orgill spanning many years, having used the distributor as their main supplier at the hardware store as well as a resource for other business services. In 2020 the Wagners began to discuss the possibility of selling the Germantown Hardware business. With John heading into full retirement, the Wagners were looking to transition some of their business interests. Justin, who had managed Germantown Hardware for some time, was looking to focus his attention on the family’s Memphis Paints business and expansion opportunities. When the Wagners shared their thoughts with Orgill, the distributor immediately began to weigh the options of how they might be able to help the Wagners achieve their goals. They also began to internally discuss the opportunities this might present. Orgill’s wholly owned subsidiary, Central Network Retail Group (CNRG) has a long history of acquiring and improving retail brands. CNRG is a multi-format, multi-brand retailer operating more than 140 hardware stores, home centers and lumberyards in 16 states. Not only was Germantown Hardware a good fit for the type of store CNRG can typically find ways to improve, but the close proximity to Orgill’s headquarters less than 10 miles away, in Collierville, Tennessee, also allowed for some additional, unique opportunities. “We had a longstanding relationship with Germantown Hardware, so we knew the business quite well,” says John Sieggreen, CNRG president and executive vice president of retail at Orgill. “We knew that there was a lot we could come in and do to help the business improve right away. But we also wanted to look beyond the typical business improvements that we felt we could implement. We saw an opportunity to really embrace Germantown Hardware as a local laboratory. Not only could we use it, like we do the other CNRG brands, to test retail concepts, but because it was so close to our home office, we would have this lab store right in our own backyard.” With the potential to serve as a next-door living retail laboratory, the Orgill team, including CNRG and Tyndale Advisors, began discussing the possibility of an acquisition with the Wagners in earnest. A Period of Transition Representatives from the Orgill team met with John Wagner over a number of weeks to discuss the possibility of an acquisition and what that would look like— and to help the Wagners feel comfortable with the acquisition and transition. Many of these discussions took place candidly and informally at breakfast and lunch with John at the Panera Bread in Germantown. “With my background and Mr. Wagner’s background in finance, there was a common interest in numbers. I was able to say, ‘I have a better solution for you,’ and helped him feel good about the numbers as we progressed down that road,” says John Dorrill, Tyndale Advisors senior advisor. “It created a good comfort level, and a good level of trust between us.” Orgill worked with John Wagner to create an agreement and plan that was fair and reflected the worth of the business and also took into account the tenant holding the lease for the pool supply store. Orgill also offered to do a physical inventory of Germantown Hardware and paid for the inventory. “Anytime somebody sells a business, especially one they've had for 20+ years and put so much of their time and effort into, it's a personal transaction as much as it is a business transaction," Dorrill says. It's a part of themselves—they've been Before - Germantown Hardware Salesfloor
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