MONTREAL, Quebec —

Every other week, aftermarketNews.com offers an interview with high-profile individuals in the automotive aftermarket. We give executives free rein to express their views on anything from the state of their corporations to recent legislative news to future trends in their niche markets. Here you see what matters to the newsmakers themselves.

Our latest Executive Interview features Jacques Landreville (JL) and Jim Buzzard (JB).

Jacques Landreville has been president and CEO of Uni-Select, Inc. since 1991. During Landreville’s tenure as president and CEO, Uni-Select Inc. has increased its sales nearly fourfold, primarily through acquisition of businesses in the same industry. Before becoming president and CEO of Uni-Select, Landreville enjoyed a career in higher education, both as a director of the economic science module at the University of Quebec in Chicoutimi, and director of the MBA Program at the University of Sherbrooke. Over the years, he occupied several top management positions in various organizations, including director and executive vice president as well as COO of Humpty Dumpty Foods, executive vice president and general manager of A. Lassonde Inc. and president of Culinar’s A.C. Confiserie.

Jim Buzzard graduated from St. Bonaventure University in 1973 with a Bachelor of Business Administration. Upon graduation, Jim joined his father in the operation and management of Middle Atlantic Warehouse Distributor, Inc. (MAWDI), which was then a two-warehouse operation. He served as the president of MAWDI, which, during his tenure, become the largest privately held automotive parts warehouse distributor in the United States. MAWDI and its subsidiaries employ more than 1,800 people at 31 distribution centers and 145 corporate stores. Buzzard has served in several civic organizations. He is a member of the World President’s Organization and the acting president of the IAPA (Independent Auto Parts of America) marketing organization, a position he has held for the past ten years. He has also served on the boards of AWDA Board of Governors and Advisory Council, Aftermarket 2010, and numerous other manufacturer councils.

On November 1, Landreville and the Buzzard family completed the merger of Uni-Select and MAWDI. The merger significantly expands Uni-Select’s reach into the U.S., where it will generate revenues of approximately $470 million. As part of the agreement, all current MAWDI and Uni-Select locations will remain under their original names, but at the corporate level MAWDI will operate as a subsidiary of Uni-Select USA. All of the various companies within Uni-Select USA, including MAWDI, will be referred to as Automotive Group USA.

Buzzard was appointed executive vice president of Uni-Select Inc. responsible for Automotive Group USA. His father, Clay Buzzard, MAWDI’s majority shareholder, will be invited to join the board of directors of Uni-Select Inc.

Landreville and Buzzard recently spoke with aftermarketNews.com and shared some of the finer details about the future for Uni-Select USA.

It was announced on Thursday, Sept. 2 that Uni-Select and MAWDI have joined forces. How will this merger affect MAWDI’s and Uni-Select’s respective memberships in IAPA and Parts Plus?

JB – MAWDI and Uni-Select recognize and respect the role of their fellow group members in the process of determining the long-term plan for resolution of this important element of the transaction. For the moment no changes are planned as we consider what would be best for our company and our customers. In the end, that’s what will guide our decisions.

Will MAWDI stores be re-branded as Parts Plus locations? What about the extensive MAWDI warehouse network and the different names they operate under, will they all be re-named as Uni-Select?

JL – Our focus on independent jobbers results in value placed on regional recognition. An important concept at Uni-Select is “think global, but act local.” We do not anticipate putting effort and resources into changing our regional approach to the market

JB – The existing corporate names will continue to identify current locations and facilities. The corporate entity, MAWDI, will continue as a subsidiary of Uni-Select USA, and the various companies within Uni-Select USA, including MAWDI, will be referred to as Automotive Group USA.

Two Questions: 1) Uni-Select has indicated that this merger is “in line” with its U.S. strategy. What exactly is Uni-Select’s overall U.S. strategy? 2) Uni-Select has been an active consolidator over the past 2 to 3 years here in the U.S. market. Are there plans for further growth through mergers and acquisitions, or does Uni-Select plan to focus on more “organic” growth (i.e., via warehouse and store sales and/or store acquisitions)?

1) JL – Mergers and acquisitions are at the center of Uni-Select’s U.S. growth plan. In parallel with Uni-Select’s Canadian Automotive Group, Uni-Select Group USA remains focused on building and supporting a large network of independent jobbers with national brands and with services that provide a competitive advantage. Further to this strategy, Uni-Select recognizes the need for a corporate store deployment to compliment its strategy of service to independent jobbers. MAWDI’s experience with corporate store management provides Uni-Select with an existing network and a proven management infrastructure to maintain and grow this complementary strategy.

JB – I agree that strong growth requires an M&A approach to the market. I do want to emphasize that organic growth at or above the growth rate of the market is very important to our success. Organic growth requires constant improvement to the programs and product offerings we bring to our independent customers, as well as a continuous sales effort directed at growing our base of independent jobbers. My focus is on improving service and programs offered to our existing customers.

2) JL – Although organic growth has always been of prime importance to us and is at the core of how we manage our business, we’ve also adopted a complementary strategy of growth by acquisition. We do not view these two growth strategies as either/or strategies but rather as complementary strategies of organic growth and what we refer to internally as our MAAAPs (Mergers, Acquisitions, Associations, Alliances and Partnerships) strategy. Both of these strategies are aimed at supporting the primary objective of adding value for our shareholders

What, if anything, will happen to MAWDI’s existing 31 distribution centers and 145 corporate stores?

JB – There are no warehouse or store closures planned. Current operations of both companies compliment one another, with very little geographic overlap. It is important to note that as in any business, “normal course of business” decisions relating to the opening or closing of locations are possible, regardless of the presence or absence of this transaction.

It was announced that MAWDI President Jim Buzzard will assume the leadership of Uni-Select USA and that Clay Buzzard will join the board of directors of Uni-Select Inc. What will happen to other Buzzard family members who are involved in the business? Rick Buzzard, for example, runs Star Automotive Warehouse in Dallas.

JL – I can tell you that not only did Uni-Select accept the continued presence of the entire MAWDI senior management group, but made it a requirement for Uni-Select’s continued interest in the transaction. The aggressive growth plans for Uni-Select USA require seasoned aftermarket savvy executives to efficiently integrate, produce the required synergies and provide for organic growth once the integration process subsides. We welcome Jim and his team to Uni-Select.

JB – Very early in our discussions, it became apparent that partnering with Uni-Select would meet an important goal for our family; to continue an on-going, challenging and rewarding role for our management group. All of the Buzzard family members involved in MAWDI before the transaction will remain with the company. Rick, Dan and John will continue in their present positions while Bob will serve in a senior management role in the new main office of Uni-Select’s Automotive Group USA which will be located in Tonawanda.

How will the merger affect the supply base of both Uni-Select USA and MAWDI?

JB – Another great benefit of this transaction is that MAWDI and Uni-Select have a high level of line commonality. This fact will provide the advantage of limiting line changeovers, which are always disruptive to business. In addition, we expect that this level of line commonality will also allow benefits in the form of buying efficiencies that will also benefit our customers. We expect very few changes in our supply relationships.

Clay Buzzard has said that the timing was right for this merger. Please expand on exactly why this particular time is good for MAWDI and its customers?

JB – Our goals for a transaction always included consideration of the transaction’s impact on our customers.

The automotive aftermarket continues to be in a business cycle that favors consolidation. MAWDI and Uni-Select have similar visions and plans for continued growth and success as automotive aftermarket distribution companies. These elements and the need for our company to make decisions relating to ownership transitions led MAWDI to consider various options. We decided partnering with Uni-Select made the most sense and met all of the primary goals we as a family set for a successful transition. Uni-Select’s plan for growth in the U.S. proved to be a good fit at this time in the development of both companies.

JL – The aftermarket holds no secrets for Clay and his sons. They know the industry and its trends and cycles and have prospered greatly by recognizing and seizing opportunities when they appear. Despite the fact that, until recently, they had not considered a transaction, they recognized Uni-Select’s interest as an opportunity to be seized. With management styles and philosophy’s being so close between MAWDI and Uni-Select and with objectives that were so tightly aligned, it seemed the perfect time to join forces and exploit the complementary strengths of both companies to achieve our common objectives.

Synergies in a merger are essential. What aspects of both MAWDI and Uni-Select are particularly well suited to a merger?

JL – This transaction was not dominated by synergies. Do not misunderstand me, significant synergies have been identified and will be pursued aggressively. However, with the exception of some consolidation in administrative functions, the assets, both human and material, that exist will be, for the most part, maintained. The real synergy in this transaction is found in the exceptional strategic and geographic fit that exists between MAWDI and current Uni-Select operations in the U.S.

JB – As Jacques has stated, this joining of forces has a lot to offer. The aspects of management and culture are always key determinants in the success or failure of joining two companies. In this instance they are particularly well suited to one another. Line commonality offers up another set of key advantages as does the complimentary geographical footprints that augment the efficiency of our territory coverage and reach.

With this merger, Uni-Select USA now has an extensive warehouse and store presence east of the Mississippi. Two questions: 1) Does this mean that Uni-Select will look to extend its reach to the western portion of the US? and 2) Does Uni-Select now have specific plans to aggressively grow its national account-type business in the U.S. (similar to its Midas arrangement in Canada, or the Parts Plus arrangement with Goodyear stores here in the U.S.)?

JB – Our existing, post-transaction network provides access to approximately 70 percent of the U.S. market as measured by population and vehicle counts. We will focus our growth opportunities within or contingent to our existing operating units.

To respond to your first question, it’s important to note that prior to this transaction, Uni-Select already had operations in the Northwestern U.S. In addition, with this transaction we are furthering our reach west of the Mississippi with the MAWDI operations in the Southwest. Therefore, without any particular focus or lack of focus on the western part of the United States, we will continue with our strategy of exploiting and enhancing our territorial reach.

As for your second question, Uni-Select has had great success in growing its national account-type business in Canada. As such, we have built up a significant amount of expertise in efficiently servicing these types of accounts in Canada. Although no specific plans are in place to aggressively grow our national account type business in the U.S., we will continuously strive to leverage this expertise as we move forward with our strategy.

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