Tuesday, November 4, 2003
Centro Inc., a Memphis-based flow control specialist, has made a big move to expand its business. The company has just completed the acquisition of Little Rock's Green Controls Inc., a major competitor in its niche market. The deal not only adds a new set of customers to Centro's business but also opens up new markets in northern Louisiana.
Centro Inc. Acquires Little Rock Competitor in Expansion Move
Centro Inc. is a well-established player in the flow control industry, selling, repairing, and maintaining valves, filters, and measuring devices for customers in various sectors. Before the acquisition, the company had a workforce of 44 employees. On the other hand, Green Controls had eight employees, four of whom joined Centro after the acquisition. However, the most significant advantage of the acquisition is the exclusive representation of Green Controls in northern Louisiana, an area previously untapped by Centro.
The acquisition of Green Controls is expected to add $4 million in sales revenue to Centro's books in 2004, taking the total sales to $18.5 million. John Gallagher, the president of Centro, expects a growth rate of 13% this year, compared to 11.5% in 2003. Gallagher attributes the growth to the strong and experienced team at Centro, as well as their partnership with new vendors and the opening of new territories in Mississippi and Arkansas. The company's long-term plan is to reach sales figures between $40 million to $45 million in 10 years.
Centro's acquisition of Green Controls is a smart business move and a strategic one. The company aims to expand into new markets in the south, and northern Louisiana is a promising region for growth. With new customer acquisition and reputation building, the company can expect to experience even higher growth rates in the coming years.
Mike Gallagher, the president of Centro, is not new to the industry; he previously worked for Thomas & Betts, a Fortune 500 company that specializes in electrical components. After joining forces with Dave Forell, the former CFO of Catherine's Stores, they bought Centro Inc. in December 2001. Dave Forell is the Vice President and CFO of Centro. The company has been successful, experiencing an increase of 16% in sales revenues in 2002.
Centro Inc. is a Memphis-based flow control specialist that recently acquired a major competitor, Green Controls Inc., in Little Rock. The acquisition adds new customers and opens up new markets for Centro, particularly in northern Louisiana. The acquisition is expected to add $4 million in sales revenue to Centro's business, bringing the total to $18.5 million in 2004. The company has a long-term plan to reach sales figures between $40 million and $45 million in ten years. Overall, with its solid leadership and strategic expansion plans, Centro Inc. is set to experience growth and success in the coming years.