Jim Sobeck, the owner of New South Construction Supply for nearly 21 years, has announced the company’s sale to Colony Hardware Inc, a direct-to-jobsite distributor of construction materials and supplies.
Sobeck, who is 68 years old and has 47 years of experience in the field, claimed he had no seller’s remorse after the transaction. He fielded the right offer at the right time that works best for his family and his company.
“Bill Lee once asked me, ‘how much of this success do you think is you?’ To me, it’s a triangle: hard work, luck, timing.”
The acquisition was influenced by timing in particular. Sobeck had been working on an ESOP program as his exit from the business until he was called by Colony Hardware a few months ago. That had been a strategy in the works for six years.
“One of the reasons why I did it is — I have had other offers — but they said they loved our social media presence, they want to keep the brand and grow the brand, and keep our team while adding 5-10 acquisitions a year,” Sobeck stated.
Sobeck knew his New South employees were in excellent hands with the financial strength to expand the brand, but after preparing an ESOP for so long, he still found a way to take care of them with a phantom stock plan.
“That was important to me. I’m feeling good that I’m not leaving my team with just a gold watch and a handshake,” said Sobeck.
Maintaining the culture he had established in New South was also critical. “We are proud to join the Colony Hardware family, and we are especially pleased that our people and locations will remain the same as we add more locations to better serve contractors across the South,” Sobeck stated in a Colony Hardware press release.
Tim Rash, chief executive officer of Colony Hardware, echoed this sentiment, saying: “Earning the trust of Jim Sobeck and the New South team further reinforces the industry view that we are the partner of choice for owners of distribution companies seeking to scale their business, grow their legacy, and help their valued employees prosper. More importantly, New South’s reputation for quality customer service and their dedicated associates mirror Colony’s ‘client-driven’ culture.”
Sobeck has a few projects in the pipeline for the future. While working through a 90-day transition plan following the acquisition, he is also updating his book, “The Real Business 101: Lessons From the Trenches,” scheduling some speaking appearances, serving on business boards, investing in real estate, and traveling with his wife. The duo has visited 55 countries and hopes to visit 100 more.
“At 68, I still want to have time to smell the roses,” he said.
