Hillsboro, Ore. — Merchandising Technologies Inc. (MTI), here, a leading supplier of retail merchandising displays, has merged with Santa Clarita, Calif.-based Andrews Electronics, a distributor and refurbisher of service components for consumer electronics retailers.
The transaction will result in the formation of a new company, MTI-Andrews, with revenues in excess of $100 million. Terms were not disclosed.
“This agreement with Andrews Electronics is an important step in MTI’s strategic plan,” said MTI CEO Michael Cook, who will continue as CEO of MTI-Andrews and serve on its board of directors. “While MTI and Andrews have always served an overlapping client base, working as one will allow us to leverage our respective strengths and to provide our clients with better service at every step in the supply chain, from helping brand manufacturers and retailers sell products to supporting the product’s lifecycle after the sale.”
Added Tordy Acker, president of Andrews Electronics and a fellow MTI-Andrews board member: “It’s been difficult for many specialty vendors to achieve the critical mass necessary to provide the type of goods, services and infrastructure that the nation’s top retailers expect. MTI-Andrews is uniquely positioned to leverage our end-to-end market expertise to serve retailers better than ever before.”
According to Cook, each organization will provide efficiencies that will support the other. MTI had previously focused on the front-end merchandising needs of retailers, while Andrews has concentrated on the after sales and service support of consumer electronic products. Going forward, MTI will leverage Andrews’ fulfillment infrastructure to expand MTI’s delivery of components and accessories to its systems and services customers, while Andrews will leverage MTI’s leadership and business development expertise to move deeper into current client accounts and assist in the acquisition of new customers.
Cook added that both companies see changes in the retail landscape in how products are sold and serviced. “The vision for the combined entity will be to expand the sale of systems, services and components to serve the needs of both retailers and brand manufacturers,” he said. “To complement this growth strategy, MTI-Andrews will expand its investment in product development, distribution and order fulfillment capabilities to assist retailers and brand manufactures better serve its customers.”
MTI, a privately held company, has been building interactive merchandising displays for consumer electronics retailers since 1977. Ninety-year-old Andrews Electronics is a leading supplier of aftermarket parts and equipment to the consumer electronics retailers, It stocks more than 250,000 products and develops supply-chain technology solutions and parts-delivery programs that minimize delivery times and reduce extended-warranty costs.