#USA #Statesville #Kewaunee Scientific #lab solutions #Nycom

Kewaunee Scientific's Strategic Acquisition of Nycom, Inc.

Kewaunee Scientific Corporation, a leader in laboratory solutions, has recently announced its intent to acquire Nycom, Inc., the largest dealer of laboratory equipment in the United States, in a strategic move aimed at bolstering its operational capabilities. This acquisition is seen as a pivotal component of Kewaunee's long-term growth strategy, intended to integrate Nycom's design expertise and project delivery strengths with Kewaunee's robust manufacturing capabilities.

A Partnership Built on Experience

Kewaunee and Nycom have a history of collaboration, having worked together for decades. Over this period, Nycom has established an exceptional reputation for its project execution and outstanding customer service within the industry. Recognizing Nycom's strong leadership and operational organization, Kewaunee aims to enhance its service offerings by incorporating Nycom's wealth of experience into its own business strategy.

Thomas D. Hull III, President and CEO of Kewaunee Scientific, expressed confidence in the acquisition, stating, "Nycom is an exceptional business, and we know firsthand the quality of their team and the work they deliver. Bringing Nycom directly under the Kewaunee umbrella will broaden what we can offer our customers and create a solid foundation for growth in North America."

This partnership will enable both companies to combine their strengths in delivering comprehensive solutions for laboratory spaces. By aligning Kewaunee’s technical product leadership with Nycom’s local execution capabilities, the two aim to enhance customer experience and satisfaction throughout the project lifecycle.

Fostering Growth

The acquisition is strategically designed to facilitate better collaboration between Kewaunee's product teams and Nycom's project management teams. Kewaunee plans to leverage Nycom's scalable operating platform to support organic growth and identify additional acquisition opportunities across North America. This integration is expected to improve responsiveness to customer needs, ultimately guiding future product development while expanding Kewaunee's participation in laboratory projects.

Jonathan Nystrom, President of Nycom, acknowledged the synergies anticipated from this acquisition, stating, "Our partnership with Kewaunee has been invaluable for many years. This opportunity allows us to build on our achievements, enhance our capability to deliver top-tier projects, and utilize Kewaunee's manufacturing strengths. There is no better partner in this industry than Kewaunee, and we take pride in joining their portfolio."

Building on a Robust Foundation

Kewaunee’s acquisition of Nycom marks an important progression in its growth strategy. The company has spent the past seven years enhancing its domestic operations and investing in critical capabilities necessary for sustained growth. Kewaunee has also developed its presence internationally as a provider of integrated laboratory solutions across key global markets.

Recently, Kewaunee launched its Lab Products Group, consolidating resources from Kewaunee, NuAire, and EVERHUTCH under a unified operational framework, thereby expanding its laboratory product offerings. The addition of Nycom is seen as a significant enhancement to these capabilities, solidifying Kewaunee's diversified business model which focuses on quality service and customer satisfaction.

Diversifying for the Future

Kewaunee’s long-term distribution strategy includes a mix of company-owned entities and independent partners. The firm intends to leverage Nycom’s existing structure to seize potential growth opportunities in North America, particularly among successful regional businesses aiming for succession. This approach aims to respect the legacies of these businesses while providing them with the resources necessary for future success.

Moreover, Kewaunee plans to maintain its support for independent dealers and distribution partners, ensuring a balanced growth strategy that embraces both company-owned and external entities.

Hull emphasized the importance of bringing strong businesses into Kewaunee while preserving the relationships that have fostered their success. He stated, "We will thoughtfully grow at a pace that ensures lasting value for our shareholders."

Looking Ahead

Upon finalizing the acquisition, Kewaunee intends to collaborate closely with Nycom's leadership to foster synergies and drive meaningful growth. The immediate focus will be on maintaining continuity for Nycom's employees and customer relationships while gradually building on existing infrastructure and resources to enhance operations.

In closing, the acquisition of Nycom not only represents a significant advancement for Kewaunee Scientific but it also underlines the company’s commitment to delivering high-quality, integrated laboratory solutions, setting the stage for a promising future in the laboratory solutions marketplace.