AVAD, WAVE Electronics Merge after Kingswood Capital Acquisition
After inking WAVE Electronics for an undisclosed amount, Kingswood Capital Management has announced that it will merge the distributor with industry stalwart AVAD. Kingswood Capital Management acquired AVAD in 2016 after it's former parent company, Ingram Micro, was sold for $6 billion to Chinese conglomerate Tianjin Tianhai.
The move will bring a cumulative 31 physical locations across North America, creating "the single largest value-added distributor of high-end audio, video, security, and home automation solutions in the consumer electronics industry." And it wasn't too long ago that AVAD brought 11 new branches to the market, including locations in Texas, Colorado, California, and Massachusettes.
“The merger of WAVE and AVAD provides for a unique combination of scale and diversification in the North American custom-installer channel," said Alex Wolf, Managing Partner of Kingswood. "The combination of WAVE and AVAD creates a multitude of growth opportunities from a wide base of 31 different physical locations. Industry integrators will have access to an industry-leading line card at more locations than ever before.”
WAVE Electronics will assume most of the control for the group, keeping the headquarters in Houston, Texas. Former Chief Operating Officer for WAVE Mark Fukuda, who joined WAVE in 2006, will take over as the Chief Executive Officer for the new enterprise. Key members of the new Executive Management team will include Bill Steckel as Chief Finance Officer, Ainslie Fukuda as Vice President of Purchasing, Bryan Stewart as Vice President of Sales, and Jon Zabel as Vice President of Vendor Management.
“Both AVAD and WAVE have spent years perfecting the just-in-time distribution model and this rapidly accelerates our ability to bring our award-winning service and product solutions to dealers throughout the United States and Canada," Fukuda said. "AVAD has built a strong presence in the pro-A/V channel, WAVE has done the same in the residential security space, combining that with our collective strength in the residential A/V markets and our new larger North American footprint is a winning combination.”
With the expansion across North America and a continued focus on residential and commercial installation, the new merger will bring a handful of competitive solutions such as same-day product needs, national one-day shipping, and dedicated support for dealers and vendors across the United States and Canada.