In a deal involving two service agents, Pennsylvania-based K&D Factory Service has acquired Maine-based Pine Tree Food Equipment. Pine Tree will operate as a wholly owned subsidiary of K&D Factory Service.
As a result of the deal, Daniel Dibeler president of K&D, takes on the same role for Pine Tree Food Equipment. Dan Poulin will continue to run the day to day operations as vice president and chief operating officer. Gary Potvin, who founded Pine Tree Food Equipment in 1989, will retire from the business.
In terms of service area coverage, there’s no geographic overlap between K&D and Pinetree. “In Pennsylvania there are other service agents but none that covers the total territory that K& D does,” Dibeler said. “And in Maine there is really no other company that covers that whole state like Pine Tree does. While there is no geographic overlap, our territories are similar in structure, meaning lots of small towns and cities, no major metropolitan areas. Plus, both companies run on the same business software, which made integration easy. Now combined the company has more than 100 service techs.”
With respect to its approach to serving equipment, both K&D and Pine Tree take a similar approach. “Both companies have technicians that serve hot equipment and cold equipment. And both have technicians that in certain territories that serve both the hot and cold side,” Dibeler said.
Acquiring Pine Tree Food Equipment represents a next step in the growth of K&D. The Pennsylvania-based service agent last opened a branch location in 2015 and plans to add another one in 2020.
“As I went over the pros and cons of various options to grow the business, the thought that we should be buying companies popped into my head. And Pine Tree was the first I approached,” Dibeler said. “I look at the consolidation going on in our industry and figure you either need to be buying or selling. Looking ahead, I am definitely looking to do more acquisitions. While there are none in the pipeline, we would actively seek new targets to acquire. I am definitely in the market to purchase and hope to give our industry another option from the big conglomerates.”
In planning for his retirement, Potvin explored various avenues that would ensure his company’s legacy would remain intact, including maintaining the family owned atmosphere and culture he created and cultivated at Pine Tree. “It’s still a family owned company, it's just now owned by a different family,” Potvin said.