One on One with Steve Henry – The CEO of House-Hasson Hardware talks about business and expansion.

One on One with Steve Henry – The CEO of House-Hasson Hardware talks about business and expansion.

Steve Henry joined Tennessee-based House-Hasson Hardware in 2010, as the company’s credit manager. In 2017, when Henry was named executive vice president. He took over the reins of the presidency in 2021.

In a recent interview with HBSDealer, Henry described the impact of the company’s recent acquisition of assets of Bostwick-Braun, which included distribution centers in Ashley, Indiana and West Helena, Arkansas — in addition to existing DCs in Knoxville, Tennessee and Prichard, West Virginia.

“Being able to double the number of our distribution centers gives us a a great opportunity to expand our footprint and what we believe we can do,” he said.

In Ashley, Indiana (from left to right): Rhonda Kugler, GM Ashley distribution center; Steve Gannon, VP Operations House-Hasson; David Barrand, Fire Chief, Town of Ashley; Lysette Aviles, VP Human Resources, Bill Hauge, CFO, House-Hasson; Steve Henry, President and CEO; Jason Rasmussen, VP Merchandising;  Peggy Pankop-Barrand, Clerk-Treasurer, Town of Ashley; Heather Handshoe, Deputy Clerk, Town of Ashley.

House-Hasson has served customers in 23 states and the Caribbean Basin from its 500,000-square-foot headquarters warehouse in Knoxville, Tenn., and 250,000-square-foot warehouse in Prichard, W. Va.

The recent acquisition gives House-Hasson a total of approximately 1.3 million square feet of warehouse, receiving, shipping, and administrative space.

Video Transcript

Ken Clark: Hello everybody, I’m Ken Clark, the editor of Hardware and Building Supply Dealer at HBSDealer.com, and this is our one-on-one interview series. With us is Steve Henry from House Hasson in Tennessee. Steve joined House Hasson in 2010 and was elevated to the presidency in 2021. Welcome to the show, Steve. Can you say hello to our audience?

Steve Henry: Yes, thank you very much for inviting us, and hello to anybody that’s taken the time to see what we’ve got to say. We really appreciate the forum and the opportunity to share a few minutes with you about House Hasson and all the great things we’ve got going on.

Ken: One of the big stories recently has been House Hasson’s acquisition of Bostwick-Braun. In an article on HBS Dealer, we quoted you saying, “Our focus is dealer profitability, and that focus is the reason for the acquisition of Bostwick-Braun.” Can you describe how Bostwick-Braun fits into your plans?

Steve: Well, a lot of folks know we’ve been around a long time and have primarily worked out of two distribution centers. We’ve got our corporate office in Knoxville, Tennessee, and some time back, we bought a warehouse in Pritchard, West Virginia. So, we’re kind of east of the Mississippi River and, of course, have some international accounts in the islands. But being able to double the size of our distribution centers gives us a great opportunity to expand our footprint and what we believe we can do. We’ve been shipping to Texas, Louisiana, and Arkansas already, and the purchase of the distribution center in West Helena, Arkansas, really helps us ship hardware in that area.

Ken: It sounds like a great expansion opportunity.

Steve: Yes, it’s been a long haul from Knoxville to Texas, so if we can hit somewhere in between like we did, it helps. The icing on the cake was the Ashley, Indiana warehouse. It gives us a great opportunity to be in states we haven’t been in before, like Michigan, Indiana, and Missouri. We’ve been well-received and are looking forward to a long relationship with those dealers.

Ken: Are you in Knoxville right now?

Steve: Yes, I’m in my office here in Knoxville. It’s a little cloudy today, but there’s a whole lot of hardware business going on, and we’re grateful for that.

Ken: In the press releases from House Hasson, you’re described as America’s largest independent regional hardware distributor. You’re even expanding into the Caribbean. Do you have ambitions to become a national distributor?

Steve: I don’t know if we’ll fare very well on the other side of the Rocky Mountains. I think we like where we are just fine. There are distinct advantages to the size we’re going to be. Our “secret sauce” is relationships, and I’m afraid we wouldn’t do as well in that regard if we expanded too far beyond Indiana or Arkansas. There’s plenty of room to grow where we are, and we enjoy focusing on profitability for our dealers.

Ken: How would you describe your dealers? Are there common denominators?

Steve: We’ve got these small independent hardware stores throughout America that depend on us for hardware, from the front of the store to the back. They’re quaint, little hardware stores in small towns, often far from big box stores. They’re the backbone of America, and many are generational. That’s the fiber of who we are—we love catering to these folks and getting to know them.

Ken: How’s business at House Hasson? Are you seeing growth with your customers?

Steve: We’ve been overwhelmed, honestly. We’re really busy, but the hardest part is hiring. It’s tough to find enough people to do the job every day. We need more folks in all our warehouses, and they’re hard to come by. But we have plenty of work and are grateful for that. We’ve gotten several hundred new dealers from the Bostwick-Braun acquisition, and we’re filling warehouses with new stock, teaching our methods, and moving our technology into these locations.

Ken: In addition to the acquisition, are there any other highlights you’d like to mention?

Steve: We’ve just gotten through a very successful June market here in East Tennessee, in the Smoky Mountains, which was probably the largest market we’ve had in June—a record. We’re moving our next market to Charlotte, North Carolina, in October. One of the drawbacks we’ve heard from our dealers is that it’s hard to fly into Knoxville, so we fixed that by moving it to Charlotte, which has a larger airport. There’s even going to be a NASCAR race and an NFL game that weekend, so it’ll be a big event.

Ken: Well, I want to thank you for joining our one-on-one interview series. Steve Henry is the president and CEO of House-Hasson Hardware. Thank you so much, Steve.

Steve: Thank you very much. We appreciate the call.

House-Hasson Finalizes Acquisition of Former Midwest Wholesale Hardware Distributor Bostwick-Braun

House-Hasson Finalizes Acquisition of Former Midwest Wholesale Hardware Distributor Bostwick-Braun

House-Hasson Finalizes Acquisition of Former Midwest Wholesale Hardware Distributor Bostwick-Braun


KNOXVILLE, Tenn., July 2, 2024 — House-Hasson Hardware, America’s largest independent regional hardware distributor, has finalized its acquisition of former Midwestern U.S. wholesale hardware distributor Bostwick-Braun’s warehouses and inventory.

The acquisition adds to House-Hasson two warehouses in Indiana and Arkansas as well as more than 45,000 stock keeping units (SKU) to its existing 55,000 SKU inventory. The facility, inventory, and employee expansion will give House-Hasson a springboard to strengthen its position in multiple states and to grow its independent hardware store and lumberyard customer base in states it hasn’t previously served.

House-Hasson President & CEO Steve Henry

“Our focus is dealer profitability, and that focus is the reason for this acquisition,” said Steve Henry, House-Hasson president and CEO. “We’re adding the Arkansas warehouse to our existing ability to serve customers in Texas, Louisiana, Arkansas, and other Southwestern states. The Indiana warehouse opens opportunities for us in Indiana, Ohio, Pennsylvania, New York, Michigan, and other states in the Northeastern region.”

“Independent hardware stores and lumberyard dealers have a great future,” Henry said. “The need for them is growing every day. They provide an unmatched level of local service and responsiveness to their customers. We’re proud to serve them, and now we’ll be able to serve them even better.”

A due diligence process has been underway since the acquisition letter of intent was signed on Tuesday, March 19, 2024. The deal was finalized on Friday, June 28. Terms of the cash sale are private between the parties.

“Our corporate policy has long been to not borrow money to finance acquisitions,” Henry said. “Our debt-free status gives us great latitude and flexibility to act on behalf of our dealers’ best interests.”

To this point, House-Hasson has served customers in 23 states and the Caribbean Basin from its 500,000-square-foot headquarters warehouse in Knoxville, Tenn., and 250,000-square-foot warehouse in Prichard, W. Va. Adding to its operations the former Bostwick-Braun warehouses in West Helena, Ark., and Ashley, Ind., gives House-Hasson a total of approximately 1.3 million square feet of warehouse, receiving, shipping,
and administrative space.

Additionally, 75 former Bostwick-Braun employees have transitioned into the House-Hasson workforce, bringing the total number to 532 House-Hasson employees serving dealers from the company’s now four locations.

“We’re delighted to have these great people join with us,” Henry said. “Throughout the due diligence process we’ve been impressed with their work and that they understand and want to be part of our focus on dealer service and profitability.”

House-Hasson, founded in 1906, is privately owned. The company’s website is www.househasson.com.

Contact:
George Korda, (865) 567-2163, gkorda@kordacom.com
Chuck Morris, (865) 300-5669, cmorris@househasson.com

 

 

SOURCE House-Hasson Hardware Company, Inc.


House-Hasson Finalizes Acquisition of Former Midwest Wholesale Hardware Distributor Bostwick-Braun

House-Hasson Signs Letter of Intent to Acquire Midwest Wholesale Hardware Distributor Bostwick-Braun

House-Hasson Signs Letter of Intent to Acquire Midwest Wholesale Hardware Distributor Bostwick-Braun


KNOXVILLE, Tenn., March 21, 2024 /PRNewswire/ — House-Hasson Hardware, America’s largest independent regional hardware distributor, has signed a letter of intent to acquire Bostwick-Braun Hardware, a Midwestern U.S. wholesale hardware distributor, officials of both companies have announced. The acquisition will include warehouses and inventory.

Steve Henry, president and CEO of House-Hasson, and Pete Richichi, CEO of Bostwick-Braun, said the letter of intent was signed Tuesday, March 19.

House-Hasson President & CEO Steve Henry

“We believe in the future of independent hardware stores and lumberyards,” Henry said. “These businesses are owned by many thousands of men and women, husbands and wives, sons and fathers, mothers and daughters, and we want to make sure they continue to prosper. Their profitability is our purpose.

“When completed, this acquisition doubles the number of our distribution centers, grows our inventory, and puts us in an even stronger position to provide everything our dealers need,” Henry said.

House-Hasson’s main warehouse is at its Knoxville, Tenn., corporate headquarters; a second warehouse is in Prichard, W. Va. With the addition of Bostwick-Braun’s West Helena, Ark., and Ashley, Ind., warehouses, House-Hasson will have more than 1.1 million square feet of warehouse, receiving and shipping space.

“Bostwick-Braun has a remarkable history, and, to its leadership’s credit, they recognized that now is a good time to partner together to better serve our combined customers,” Henry said.

Richichi said that Bostwick-Braun has a nearly 170-year history of working for customers throughout the U.S. Midwest.

“Bostwick-Braun is privileged to have served so many wonderful customers in our long history,” Richichi said. “Our doors opened only 79 years after the U.S. became an independent nation: since the day we opened we’ve enabled our customers to be successful.

“Our long history was possible because of generations of employees dedicated to doing a great job for our customers. Our assessment, after much consideration, is that House-Hasson, with its history and dealer-profitability focus, is exactly the right company to continue our legacy.”

The acquisition described in the letter of intent will be complete after a period of due diligence. The pending acquisition’s cost is being privately handled between the two companies.

In 2023, privately-owned House-Hasson, founded in 1906 in Knoxville, had total sales of $350 million; Bostwick-Braun’s sales were approximately $80 million.

There are 110 employees working in Bostwick-Braun’s two warehouses; House-Hasson plans to try to retain as many employees as possible.  House-Hasson’s staff currently numbers 465 employees in Knoxville and Prichard.

The 56,000 stock keeping units (SKU) in Bostwick-Braun’s warehouses will be incorporated into House-Hasson’s system. House-Hasson presently has 55,000 SKUs in its two warehouses.

House-Hasson serves dealers in 23 states and the Caribbean Basin. The company’s website is www.househasson.com.

Contact:
George Korda, (865) 567-2163, gkorda@kordacom.com
Chuck Morris, (865) 300-5669, cmorris@househasson.com

 

SOURCE House-Hasson Hardware Company, Inc.


Thank you, customers, for your friendship during this difficult time.

Thank you, customers, for your friendship during this difficult time.

Thank you, customers, for your friendship during this difficult time.

Wednesday, February 14, 3:00 p.m.

House-Hasson letterhead

 

Thank you, friends.

When you hit a rough patch, you count on your friends.

House-Hasson hit a rough patch, and we’ve seen and heard from our friends. Our customers. We couldn’t be more grateful to you. Every one of you.

When on Jan. 15 a massive snowstorm hit Knoxville that damaged our warehouse and shut it down for days, we naturally had concerns about how you would react. You count on us, just as we count on you.

The answer was an outpouring of concern, understanding, and patience, from you, our friends.

We wondered a little bit whether our warehouse situation might affect our January dealer market in Nashville. The market’s results show it to be the most successful market we’ve ever held in Music City. You read that right. EVER.

It broke records in sales and attendance that, quite frankly, astound us. You demonstrated your support for us, again.

Ford Motor Company founder Henry Ford once said, “My best friend is the one who brings out the best in me.” You, our customers, inspire us to want to do our best for you, every day.

We hit a rough patch, and our friends were there for us. From all of us at House-Hasson Hardware, thank you.

 

Sincerely,

Steve Henry Signature - without background

Steve Henry
President & CEO
House-Hasson Hardware Company


WAREHOUSE UPDATE: Shipments Begin Monday, February 5!

WAREHOUSE UPDATE: Shipments Begin Monday, February 5!

Friday, February 2, 7:00 p.m.

House-Hasson letterhead

 

Dear Dealers,

Shipments and full-time operations from our Knoxville warehouse Building A will begin at 6:00 a.m., Monday, Feb. 5!

The structural engineering inspection today confirmed that the reinforcements to the Building A warehouse roof are essentially sound and complete, the building and roof are safe, and our employees will return to work. 

A small portion of the warehouse still needs more work. Therefore, on Wednesday, Feb. 7, for our employees’ protection, we’ll suspend operations – anticipated to be only one day – in Building A. This is for safety, so that construction workers may access the roof in the 10% of Building A on which additional work is needed.

On Thursday, Feb. 8, we’ll resume regular full-time operations.

During the time we can’t access the small number of products in the closed warehouse area, you may see a slight increase in orders of products tagged with CODE 4 on eToolbox, signaling to you that we will ship those items as soon as we can pick them. We expect this issue will be resolved soon.

Next week’s schedule:

Monday

Building A reopens, orders are picked, deliveries resume.

Wednesday

Building A closes – for one day – for additional safety work.

Thursday

Normal operations resume.

I hope you are as encouraged by this news as we are. This has obviously been a minute-by-minute challenge for our entire team, but we are grateful to report to you that light is indeed at the end of the tunnel.

Thank you again for your patience, and thank you, as always, for choosing House-Hasson.

Sincerely,

Steve Henry Signature - without background

Steve Henry

President & CEO

House-Hasson Hardware Company