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W e’re all so used to hearing about companies merging on Wall Street. But this quiet combination isn’t about stock prices (our owner is a family-owned private company). For more than 15 months, Capital Lighting & Supply, based in Upper Marlboro, MD, has operated at an arm’s- length distance from a sister company, Tristate Electrical & Electrical Supply of Hagerstown, MD. Together, the two companies have 45 branch locations in a service area that includes DC, MD, southern PA, VA, and WV. There are all kinds of good things involved in this combination. If you’ve been a customer of both companies, that doesn’t have to change. If you’ve done business only with CLS or Tristate, that doesn’t have to change. Explained Paul Klasing, president of our parent company, Sonepar USA (located in the company’s Philadelphia HQ): “The key will be to listen to what our customers are telling CLS & Tristate Are United As One By Joe Salimando What Customers Of Both Companies Will Get From The Combined Entity C A P I T A L N O W I Special Report Section “The key will be to listen to what our customers are telling us.” -Paul Klasing, President of Sonepar USA us. If they like the Capital brand and the Capital sales rep, we’re not going to mess with that. And vice-versa.” We’re planning on improvements Even if you would change nothing about your relationship with the now-united companies, you’re going to see improvements. “What’s great about this combination,” explained John Hardy, president of CLS, “is that we’ll be & SPECIAL REPORT

SPECIAL REPORT - CapitalTristate in Upper Marlboro, MD, ... Special Report Section C A P I T A L N O W I ... project in southern Pennsylvania – we’ll

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We’re all so used to hearing about companies merging on Wall Street. But this quiet combination isn’t about

stock prices (our owner is a family-owned private company).

For more than 15 months, Capital Lighting & Supply, based in Upper Marlboro, MD, has operated at an arm’s-length distance from a sister company, Tristate Electrical & Electrical Supply of Hagerstown, MD.

Together, the two companies have 45 branch locations in a service area that includes DC, MD, southern PA, VA, and WV.

There are all kinds of good things involved in this combination. If you’ve been a customer of both companies, that doesn’t have to change. If you’ve done business only with CLS or Tristate, that doesn’t have to change.

Explained Paul Klasing, president of our parent company, Sonepar USA (located in the company’s Philadelphia HQ): “The key will be to listen to what our customers are telling

CLS & Tristate Are United As OneBy Joe Salimando

What Customers Of Both Companies Will Get From The Combined Entity

C A P I T A L N O W ISpecial Repor t Section

“The key will be to listen to what

our customers are telling us.”

-Paul Klasing, President of Sonepar USA

us. If they like the Capital brand and the Capital sales rep, we’re not going to mess with that. And vice-versa.”

We’re planning on improvementsEven if you would change nothing about your relationship with the now-united companies, you’re going to see improvements. “What’s great about this combination,” explained John Hardy, president of CLS, “is that we’ll be

&SPECIAL REPORT

C A P I T A L N O WII Special Repor t Section

able to bring new ideas and products to CLS customers. And the Tristate customers will be able to say the same thing.

“So there will be changes. But what’s really exceptional – and I’ve only learned this recently – is that the cultures of the two businesses are pretty similar. The people at Tristate are just like the people at Capital: They are passionate about serving their customers.

“That’s why this is going to be very good for all of the customers.” Perhaps you’d expect Hardy to say such a thing. But he really has been learning about the new environment – and has exciting things to report: “We’ve been involved in going around the area, talking to the employees at each of our branches,” he said.

“You would expect the questions from the Tristate employees to be more about their own personal futures, their jobs, and the like. Perhaps you might characterize that expectation as ‘what about me?’

“Instead, what we’ve gotten, at branch after branch, are questions about what the new combination would mean in terms of providing better customer service. The Tristate people are excited about this change, because it gives them more local authority and autonomy.

“I’ve met people who have worked for Tristate for 20 years and more. These people are still excited about coming to work in electrical distribution. I have to tell you, hearing and seeing that kind of excitement, and getting little or none of the ‘what about me?’ stuff, has been a very great experience.

“It says great things about what we’ll accomplish, together, for the customers of Tristate and those of Capital.”

Exchanging ‘best practices’In business terminology, “best practices” is about identifying what another

SPECIAL REPORT

C A P I T A L N O W IIISpecial Repor t Section

Maryland1. Annapolis2. Baltimore3. Frederick4. Gaithersburg5. Golden Ring6. Upper Marlboro7. White Plains

Virginia8. Alexandria9. Ashland10. Charlottesville11. Chesapeake12. Farmville13. Fredericksburg14. Goochland15. Manassas16. Moseley17. Richmond18. Sterling19. Suffolk20. Williamsburg21. Winchester

PennsylvaniaA. ChambersburgB. GettysburgC. HanoverD. LancasterE. MechanicsburgF. York

MarylandG. AnnapolisH. BaltimoreI. ChestertownJ. CumberlandK. ColumbiaL. FrederickM. Glen BurnieN. HagerstownO. Havre de GraceP. Ocean PinesQ. SalisburyR. TimoniumS. WestminsterT. White Marsh

VirginiaU. Colonial HeightsV. RichmondW. Winchester

West VirginiaX. Martinsburg

– to 45 branches – the “one source” of supply that electrical contractor customers can rely upon in these interesting economic times.

“More and more contractors are finding themselves traveling outside of what once was their traditional geographic service areas,” Hardy noted.

Added McDowell: “We can offer those contractors more coverage now, with 45 branches, as they travel further from their homes out of necessity.”

Added Rosenfeld: “You might have a contractor who has traditionally been a Capital customer, who now has a project in southern Pennsylvania – we’ll have him covered now. And it works the same for a Tristate customer who ends up doing work in the Tidewater area of Virginia.”

Summarized Hardy: “If you look at it from the customer’s point-of-view, both companies have expanded their service area. You’ve got one enterprise in the Mid-Atlantic area, with 45 branches. If they travel, an electrical contractor can still can do business with a premium distribution operation, one with which they already have a relationship.”

What you have to do nowHere’s the best part: You need do nothing.

If you like things the way they are, tell us (and they won’t change). Soon, you’ll get better service anyway; you’ll see improvements here and there along the way.

If you’re traveling, or you have questions about this new unified 45-location distributor in your operating area, don’t hesitate to ask your local contact or call your local branch, today! n

enterprise does that’s unique and excellent, and copying that. According to COO Alan Rosenfeld of Capital, Tristate is looking over how Capital does things, and Capital is eyeing some impressive results obtainedby Tristate.

“There are a number of things that Tristate does that we’d like to copy in the existing Capital branches. For example, they have a self selection approach at their branches – something in the counter area. Customers just love it. It’s been very successful for Tristate,” Rosenfeld related.

“If we can, we’d like to replicate that merchandising and marketing approach and put it in the Capital branches.

“On the other end, we at Capital have recently implemented an online E-commerce system. It’s taken some time to put together, and it’s part of a U.S.-wide effort by our parent company, Sonepar. Tristate does not have an E-commerce solution just yet. But they soon will!”

At Tristate, Scott McDowell, a vice president, is one of those 20-plus-year employees. He’s seen changes at the company, starting with its acquisition roughly nine years ago.

“Top leadership has changed over the years which has, from time to time, changed our direction. This merger will allow us to operate as one business with all our focus on the customer.

“One of the things that is different about the two businesses is that CLS is primarily contractor based where about 25% of our business is MRO / OEM. We can learn from each others’ best practices.”

Take us with you!Additionally, all of the local executives mentioned the idea that the merging of Tristate and CLS essentially expands

SPECIAL REPORT

C A P I T A L N O WIV Special Repor t Section

CLS LocationsMARYLANDAnnapolis .......................(410) 919-2400Baltimore........................(410) 752-4080Frederick ........................(301) 663-1232Gaithersburg ...................(301) 921-4446Golden Ring ....................(410) 918-0540Upper Marlboro ...............(301) 909-6550White Plains ...................(301) 885-3232

VIRGINIAAlexandria ......................(703) 823-6001Ashland ..........................(804) 798-2155Charlottesville .................(434) 293-8117Chesapeake ....................(757) 547-7222Farmville ........................(434) 392-1650Fredericksburg ................(540) 710-7200Goochland ......................(804) 784-0224Manassas........................(703) 361-6028Moseley ..........................(804) 739-7243Richmond .......................(804) 355-8003Sterling ..........................(703) 444-5080Suffolk ...........................(757) 484-3816Williamsburg ...................(757) 253-1440Winchester ......................(540) 665-9990

Tristate LocationsPENNSYLVANIAChambersburg .................(717) 264-4631Gettysburg ......................(717) 334-6721Hanover ..........................(717) 632-7773Lancaster........................(717) 394-6881Mechanicsburg ................(717) 766-3287York ...............................(717) 755-1455

MARYLANDAnnapolis .......................(410) 295-6645Baltimore........................(410) 483-1200Chestertown ....................(410) 778-1154Cumberland ....................(301) 777-0060Columbia ........................(410) 995-6844Frederick ........................(301) 662-2136Glen Burnie ....................(410) 761-2870Hagerstown .....................(301) 733-1212Havre de Grace ...............(410) 939-5880Ocean Pines ....................(410) 208-0800Salisbury ........................(410) 546-1221Timonium .......................(410) 252-7020Westminster ....................(410) 848-3050White Marsh ...................(410) 483-1000

VIRGINIAColonial Heights ..............(804) 520-7798Richmond .......................(804) 231-4405Winchester ......................(540) 662-1769

WEST VIRGINIAMartinsburg ....................(304) 263-1212

GO GREEN...THINK BLUE!

CLS’s Blueway Program is a practical and efficient way to supplement your sustainability efforts. The Blueway Program provides a central platform for procurement of recycling services for lamps, ballasts, batteries and electric waste. Customers are provided with an up-to-date spreadsheet off all recycling efforts at individual properties or entire portfolios. In addition, Blueway is the only provider of The Bulb Eater On-Site Lamp Crusher.

BLUEWAY RECYCLINGWITH CAPITAL LIGHTING & SUPPLY

Blueway Recycling: • Provides a central platform for procurement of recycling services for lamps, ballasts, batteries and electronic waste • Provides Management, Measurement and Marketing capabilities • Provides customer with a continuously updated spreadsheet of all recycling efforts by individual property or entire portfolio • Customers can reference individual properties or entire portfolios at the click of a mouse to view recycling at any moment. • Site provides a platform for environmental messaging with presentations 24/7 • The Bulb-Eater - This solution is not available anywhere else. • Site includes state by state regulations

For more information, visitwww.capitallighting.com

09_Blueway Ad.indd 1 7/21/2009 2:27:20 PM