by Amy Antenora
Above: Beck/Arnley’s Max Dull (left) and Richard Roy of Uni-Select
In this exclusive Executive Interview, Uni-Select President and CEO Richard Roy and Max Dull, vice president and general manager of Beck/Arnley, provide an update on what to expect following Uni-Select’s acquisition of the import parts maker. The two address plans for strategy, branding and distribution.
Please update us on the acquisition since we last spoke in early May. Initially, you shared with us that Uni-Select would acquire Beck/Arnley as the cornerstone of a new import nameplate division, with no changes to management or strategy. Any updates or changes to that plan?
Max: There has been a lot of activity since Uni-Select acquired Beck/Arnley. As you mentioned, Beck/Arnley is the starting point for the new foreign nameplate division, which serves both the Uni-Select network, as well as our other customers. During the process of coming together, Richard and I discussed many opportunities and many projects that would enhance Beck/Arnley’s programs for the benefit of our distributor customers, including Uni-Select USA and Canada. Since the sale was finalized on June, we have quickly turned concepts into implementation plans. We are only several weeks away from unveiling the details of a very exciting new program that begins with the solid base of the Beck/Arnley brand “Application Specific Sourcing” model, for our OE match product offering, and adds enhancements we had only dreamed of being able to accomplish prior to the acquisition! This is more than just Beck/Arnley. It’s Beck/Arnley in the context of the Uni-Select Foreign Nameplate Division, which gives us tremendous opportunities we never had before.
What is the plan for Beck/Arnley with respect to Beck/Arnley customers that are not part of the Uni-Select distribution group? How will this acquisition affect those relationships?
Max: Again, Beck/Arnley is the cornerstone of the new Foreign Nameplate Division, which is a stand-alone business unit whose customer list happens to include Uni-Select, USA and Uni-Select, Canada. We will use the unique skills and knowledge in product sourcing that we have developed over the past 94 years to serve all of our retail and warehouse distributor customers, as we always have done. We will continue to support the traditional distribution model. Our collective customer is the foreign nameplate service dealer and DIY installer. We hold a value-added position at the start of the supply chain. Our retail and warehouse distributor partners, and the jobber, likewise hold value-added positions in the supply chain. We all add different value. We will focus on what we do best, which is supplying our distributor partners with the highest quality parts available for foreign nameplate vehicles, under the brand most well recognized in the market by foreign nameplate service dealers. This, in turn, allows our distributor partners to focus on what they do best, which is making Beck/Arnley parts available locally for jobbers and the ultimate customer, the service dealer or DIYer. The changes to expect are that we plan to have more inventory available to fuel growth at consistently high fill rates, as well as many new exciting programs.
Richard: To expand on Max’s statement, what Uni-Select provides is financial strength, and with that strength, as part of our new Foreign Nameplate Division, Beck/Arnley will have greatly enhanced resources. At the same time, the knowledge and experience of the people at Beck/Arnley provides important continuity. With the combination of experience and financial strength, customers both outside of and within the Uni-Select network will benefit.
Do you anticipate or worry at all that Uni-Select competitors will stop buying Beck/Arnley products?
Richard: Since completing the acquisition, our management teams, as well as Max and I individually, have contacted many customers to get their feedback. We have delivered a consistent message, that is well understood, and the overall response has been very positive. Under the Uni-Select corporate umbrella, we have the Canada Automotive Group, the U.S. Automotive Group, our Heavy Duty Division, and now, our Foreign Nameplate Division. Structurally, the Canadian Automotive Group and the U.S. Automotive Group will purchase products from Beck/Arnley in the same manner as they have in the past. Likewise, all of Beck/Arnley’s customers will purchase product in the same manner as they have in the past. As the new owner of Beck/Arnley, we totally support their commitment to equally serving all of their distributor customers. It is actually pretty simple. Uni-Select Corp., as Beck/Arnley’s new parent, will provide the financial strength it needs to implement many exciting new programs, while the Canada Automotive Group and the U.S. Automotive Group remain customers of Beck/Arnley, as they have been in the past.
What will become of Beck/Arnley’s branding?
Max: As independent studies in recent years have shown, the Beck/Arnley brand ranks number one in unaided brand awareness amongst foreign nameplate vehicle technicians. The Beck/Arnley brand represents a unique sourcing by application philosophy that means genuine quality. The brand will be the foundation of our foreign nameplate strategy.
What has been the initial feedback that you are hearing from the marketplace, after announcing the acquisition?
Richard: As we said, the initial feedback has been positive. It’s a really remarkable time for all of us. And we’re just getting started. Check back with us in a few months. Beck/Arnley and our new Foreign Nameplate Division have a lot of exciting things in store for the market, through our distribution partners and jobbers.
