The move is a way of dealing with a home and construction market that has withered in recent years.
“We’re basically two businesses looking to grow in a market that has become smaller,” Pippenger said.
Pippenger and Rick Flaute, president of Supply One, declined to discuss terms of the merger.
But each had reasons for exploring a union. Pippenger said the one-time possibility of a “Ballpark Village” development around Fifth Third Field north of downtown had him considering new locations in recent years, and he had weighed entering the cabinet market. Today, however, Pippenger said Requarth will remain in its current home.
Flaute was considering his own moves recently.
“We were looking for new showroom space, and that’s kind of how the whole discussion started,” said Flaute, who will run the combined company’s cabinet division.
Talks began in January before a merger structure was settled on in April. Both sides are now ready to close.
Historically, both companies have a similar customer base — homeowners and contractors. Merging lets them expand product lines. Pippenger said he hopes to create a “destination showroom” that displays cabinets, windows, doors, and other examples of both businesses’ expertise.
Requarth has long specialized in millwork and lumber for decks, doors, windows and more. Supply One focuses on cabinets, countertops, windows and doors to retail customers and local homebuilders.
“We’re optimistic that we’ve been through the worst,” Pippenger said. “I don’t think anyone here is expecting a rapid recovery.”
Both companies have decades of experience and local ownership behind them. Requarth was founded in 1860 and is famed locally for having sold wood to the Wright brothers for their early airplanes. Supply One has been in business since 1940.
Lynn Schwarz, executive vice president of the Columbus-based Ohio Construction Suppliers Association (formerly the Ohio Lumberman’s Association), said she hasn’t seen many firms merge in the wake of the recession. Too often, she said, construction suppliers simply downsize or close their doors altogether.
“I think perhaps that (a merger) is a strategic way to go,” Schwarz said. “Because in this economy, businesses are looking for every niche they can find to set themselves apart.”
Contact this reporter at (937) 225-2390 or tgnau@DaytonDaily News.com.
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