Kewaunee Scientific Corporation announces changes to its domestic distribution strategy
STATESVILLE, North Carolina, Jan. 5, 2022 /PRNewswire/ — Kewaunee Scientific Corporation (NASDAQ: KEQU), a recognized global leader in the design, manufacture and installation of laboratory, healthcare and technical furniture products , today announced a change in its go-to-market strategy for the sale and distribution of its products. Kewaunee has historically sold products domestically through a network of dealers and distributors. In areas where these distribution partners were insufficient to serve the market, Kewaunee sold directly to general contractors or the end customer, capturing opportunities that might otherwise be missed. Although Kewaunee’s direct business grew, it also created inefficiencies that hurt the company’s profitability.
Kewaunee is delighted to announce that it has entered into long term agreements with its two largest reseller partners, Nycom and ISEC, two of the industry’s leading specialist contractors. Effective immediately, territories where Kewaunee has historically sold directly will be covered by Nycom and ISEC. This change in Kewaunee’s go-to-market strategy will streamline the company’s focus on providing high quality manufactured products. Nycom’s expanded territory will now include New York, New Jersey, Delaware, and all of Pennsylvania. The extended territory of ISEC will include Illinois, Arkansasand Oklahoma.
“Over the past year, Kewaunee has conducted a comprehensive assessment to optimize our go-to-market strategy,” said Thomas D. Hull III, President and CEO of Kewaunee Scientific Corporation. “Through this process, we have identified a significant opportunity to generate sustainable profitability and shareholder value by further improving the performance of the company’s manufacturing capabilities while simultaneously securing long-term commitments from important manufacturing partners. distribution to penetrate deeper into the markets we previously sold directly in. This change will allow us to simplify our business, strengthen our relationships with our partners and focus on being a world-class manufacturer to serve our dealers and our distribution partners with excellence.”
“As I have said previously, I expect global demand for Kewaunee’s products and services to continue to grow as the world continues to rely on our industry, as there is an ongoing effort to fight against global health issues. Kewaunee is well positioned to capitalize on future investments made in the pharmaceutical, biotechnology, healthcare, academic and other markets we serve.”
An employee-owned company for more than 50 years, ISEC has provided innovative science and technology solutions in world-class facilities in all markets. With a nationwide footprint of more than 1,500 highly skilled professionals, our specialist teams bring solution-focused competence that helps our customers drive revenue through improved efficiency in product production, putting emphasis on employee safety. Our solutions have been proven to help our valued customers generate revenue, while aiding in both talent recruitment and retention.
ISEC is committed to operational excellence, with a proven track record of successful project execution. We have developed dedicated regional disciplines, all designed to deliver a world-class experience, including design, estimating, project management, operations and specialist equipment sourcing. Our field supervision teams and installation teams employed by ISEC are selected based on the type of project that matches their individual experience and skill levels. The ISEC website “We Build For Life’s Most Important Events” can be found at: https://www.isecinc.com/
Nycom is a full-service interiors contractor specializing in lab construction, architectural millwork and other interior products. With nearly 40 years of experience, the company is highly respected throughout Mid-Atlantic and Southeastern United States to have superior quality products and services. Nycom’s industry-leading design, budgeting, engineering, management and installation capabilities have enabled Nycom to be an integral part of many successful construction projects in the education, life sciences, life, health, industry and pharmacy. The Company has its registered office at Richmond, Virginia with major offices in Raleigh, North Carolina and Atlanta, Georgia. (www.nycominc.com).
About Kewaunee Scientific
Founded in 1906, Kewaunee Scientific Corporation is a recognized world leader in the design, manufacture and installation of laboratory, healthcare and technical furniture products. The Company’s products include steel, wood and laminate furniture, fume hoods, adaptable modular systems, mobile workstations, freestanding benches, biological safety cabinets and resin work surfaces and sinks. epoxy.
The registered office of the Company is located at Statesville, North Carolina. Direct sales offices are located at United States, India, Saudi Arabiaand Singapore. Three manufacturing plants are located in Statescity serving domestic and international markets, and a manufacturing plant is located at Bengaluru, India serving local and Asian markets. The Kewaunee Scientific website can be found at https://www.kewaunee.com.
This press release contains statements that the Company considers to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included in this press release, including statements regarding the Company’s future financial condition, results of operations, business activities and business prospects are forward-looking statements. Words such as “anticipate”, “estimate”, “expect”, “project”, “intend”, “plan”, “predict”, “believe” and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors that could have a material impact on the results or achievements expressed or implied by these forward-looking statements. These factors, risks, uncertainties and assumptions include, but are not limited to: general and competitive economic conditions and the continued impact of the COVID-19 pandemic, including disruptions to government mandates, both domestically and internationally. international ; changes in customer demands; technological changes in our operations or in our industry; reliance on delivery schedules required by customers; risks relating to fluctuations in the Company’s operating results from quarter to quarter; international transaction risks, including currency fluctuations; changes in the legal and regulatory environment; changes in raw materials and commodity costs; and acts of terrorism, war, governmental action, natural disasters and other force majeure events. The warnings given under the Reform Act here and elsewhere by us should not be construed as exhaustive. We cannot always predict which factors would cause actual results to differ materially from those indicated by the forward-looking statements. Over time, our actual results, performance or achievements will likely differ from any anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, and such difference could be material and harmful to the interests of our shareholders. Many important factors that could cause such a difference are described under “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the year ended. April 30, 2021, which you should read carefully, as well as in our subsequent quarterly reports on Form 10-Q and our current reports on Form 8-K. These reports are available on our Investor Relations website at www.kewaunee.com and on the SEC website at www.sec.gov. These forward-looking statements speak only as of the date of this document. The Company undertakes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact: Donald T. Gardner III 704/871-3274
SOURCE Kewaunee Scientific Corporation