LANGHORNE, Pa. – Pennsylvania’s Eastern Warehouse Distributors (Eastern) has announced its merger with South Jersey Auto Supply, in a combination stock/cash transaction, which became effective Nov. 18.
“It is clear that the only way to compete with the billion-dollar big boys in the wholesale aftermarket is more consolidation. We have a five-year expansion plan to double existing sales with multi-store, multi-state growth through acquisition,” says Steve Thorne, CEO and founder of Eastern. “Advance’s recent announcement, that 37 percent of their sales are in the wholesale sector, is highly motivating. Either stand up, or sit down. We are dedicated for the long haul and will compete to maintain and grow the wholesale customer base.”
In addition to the merger, Eastern announced that its new 200,000-square-foot distribution center in Langhorne, Pa., will open in 30 days. A half-mile from the existing warehouse and corporate office, this $9 million state-of-the-art facility, was built for the purpose of distributing more parts with greater efficiency at a much lower cost of operation, Eastern says. The current 80,000 square foot warehouse will be dedicated to the multiple-line, growing container programs, in addition to expanding the corporate office.
Eastern now operates 32 two-step warehouses, spread over Eastern Pennsylvania and lower New Jersey. For 2012, the company says it anticipates combined sales of $100 million, driven by more than 850 employees and more than 350 delivery vehicles.
Eastern Warehouse Distributors was founded in 1989 with a single location in Langhorne, Pa. South Jersey Auto Supply opened in 1952 with one location in Somers Point, N.J., and was purchased by John Rochford in 1986. Rochford is now the president of Eastern Warehouse Distributors.
“John and I both know our companies and our customers will benefit from this merger,” said Thorne.
Both companies are members of the Aftermarket Auto Parts Alliance, which is the sixth-largest auto parts distribution and marketing organization in the country.
