The two distribution companies announced on Tuesday that, with the help of Dallas-based Brazos Private Equity Partners LLC, they were combining operations. Acquired by the private equity firm in a transaction initiated by Imperial Capital LLC, the new organization will operate as Tri-Northern Security Distribution Inc., with Tri-Ed and Northern executives Steve Roth and Mark Haney retaining the mantles of chief executive officer and president, respectively. Imperial Capital served as exclusive financial advisor to Tri-Ed Distribution and as a financial advisor to Northern Video Systems. The new company operates 41 locations across North America.
In an exclusive interview with SDM, Roth and Haney explained that the two distribution companies have been actively talking for several months about merging their operations. The reason? In a highly fragmented industry, consolidation is an appropriate strategy when there are a select few major players and a number of smaller entities.