Extracted from The Amarillo Globe News (Amarillo, TX)
McLane buys McCarty-Hull
Local management team to remain in place
By Jim McBride
Temple-based grocery and food-service distributor McLane Co. has purchased Amarillo-based wholesale distributor McCarty-Hull. Company officials say they expect a seamless transition that will leave Amarillo managers in charge of day-to-day operations.
McCarty-Hull distributes $100 million worth of grocery, tobacco and other products to convenience stores and grocers in four states. It serves chain customers and smaller, independent retailers.
McLane, a $24 billion operation owned by Warren Buffett's Berkshire Hathaway, has 19 grocery distribution divisions and 18 food-service distribution centers throughout the United States.
``We believe that combining the financial resources of McLane with the hands-on management style of McCarty-Hull will be a win-win for everyone, especially the customers,'' said Jim Kent, executive vice president of administration at McLane.
Under the deal, McCarty-Hull will operate as a wholly owned subsidiary of McLane but will remain headquartered in Amarillo and operate under the McCarty-Hull name. The Amarillo management team, under the leadership of Bill McCarty Jr. and Joe Bowlin, will remain in place.
``There will be no difference in the way that we service our customers in the trade area that we cover,'' Bowlin said. ``Essentially, all that's happened is the stock has been sold by the McCarty family and the employee stock-ownership trust to McLane Co. They intend to operate us a separate subsidiary company.''
Bowlin said the sale was initiated by McCarty and that McCarty-Hull's 105 employees will stay in their present posts. McCarty, the company's chairman, was unavailable for comment Wednesday.
``Bill McCarty is still the man in charge. I'm still the president and chief operating officer, and everyone else will continue in their present capacities,'' Bowlin said. ``I'm going to assume that it was it was getting close to him (McCarty) for retirement and so this was the best way perhaps that the company could continue serving the customers in the same way, and all the employees have the same exact jobs as they had before.''
The transaction was completed Friday, but company officials said they could not disclose the sales price.
One of McCarty-Hull's biggest customers in Amarillo is Toot'n Totum Stores.
Greg Mitchell, president and CEO of Toot'n Totum, said he was glad he can continue dealing with the same McCarty-Hull people he has worked with for years. He also sees the move as a positive one that will bring better ordering and tracking technology to his 65 stores.
History
Source: McLane Co.
Thursday, March 30, 2006
jim.mcbride@amarillo.com