Issue link: https://www.e-digitaleditions.com/i/999236
22 FEDA News & Views Over the years, sales have hovered in the $35 million to $40 million range, largely due to Beltram's decision to convert three of his profi table divisions into cash. So, when B&J's Pickering called and said he wanted to buy his dealership, Beltram wasn't surprised. What intrigued him was the idea of locking arms with another dealer and then taking the private equity route. "When Robert and I sat down and began to look at the numbers, what excited me the most was the realization that by combining our purchases, we could see a $1 million to $2 million increase in profi ts," says Beltram, who admits that entertaining the sale also was about timing. "When I visited their operations, I was impressed," he says. "B&J had an accomplished import program and, as a result, they had some pretty interesting price points. Each one of us had attributes the other did not have, so we both felt there were real gains in moving forward." e other revelation that surfaced was—deal or no deal—there were multiple opportunities for B&J and Beltram to collaborate, particularly since neither was operating in the other's backyard. at phase of the relationship began last September while the two were still working through the details of the M&A. B&J did some importing for Beltram; Beltram shared its design-build expertise to help B&J secure a major country club job. "We had the opportunity to get to know each other very well, so the trust was there," says Pickering. "We started to share facilities and contracts. All of our decisions were driven by the bottom line, which drives good economics on Dan's side and good economics on our side." Becoming BJ Beltram "It's hard to turn your back on something you've watched grow and expand," says Nancy Mosburg about the decision to sell B&J. "It's like your child. We've had some rough years, but we've had some really good years." Handing the business over to a company like Trivest has made the transition easier, she says. Located in Coral Gables, Fla., Trivest was founded in 1981 and has completed more than 250 transactions exceeding $6 billion in value. B&J and Beltram chose it over three other private equity fi rms because of its "If it's not broke, don't fi x it" philosophy and focus on more modest- sized family-owned and -operated businesses. e recapitalization of B&J and Beltram is its fi rst venture in the foodservice equipment and supplies industry. "We're not so big that a $5 or $10 million dealer doesn't move the needle for us," says Trivest Partner Jorge Gross Jr. "What we try to do is leverage what's already been done and build on the foundation of a company that's already successful. In many cases, an additional investment in the business is all that is required to get to the next level. What we're very good at it is identifying the levers that we can pull to help the business reach the next level without upsetting the apple cart. " at's very important to us," says Gross. "We always keep our eye on the core…a business' core customer base, supplier base, employee base, and management team." Check, check and check for Beltram and B&J. According to Gross, "both companies have an excellent reputation and very broad product off ering. eir customer and supplier relationships are long-standing, growing and strong. ey both bring value-added capabilities to the table and have clear runways for growth." Another obvious plus: Having someone with Pickering's skill set at the helm. "Many companies that grow very fast have diffi culty managing that growth," says Gross. "Robert has been in high-growth industries and has run larger organizations, so we were very excited about the fact that he could help us grow this business and do it in a prudent and effi cient way." Pickering also has an impressive track record in leading strategic acquisitions, which aligns with Trivest's goal to increase its geographic coverage. For months, there have been murmurs around the industry about behind- the-scenes talks with other small to midsized dealers considering rolling up as a viable succession plan. is past May, Trivest announced that the 120-year-old dealer Louis Wohl and Sons is the third dealer to join BJ Beltram. Its annual sales are now a combined $100 million and in the next FE&S Giants, the distributor will be sitting within the top 20. ■ FEDA News & Views since neither was operating in the other's backyard. at phase of the relationship began last September while the two were still working through the details of the M&A. B&J did some importing for Beltram; Beltram shared its design-build expertise to help B&J secure a major country club job. "We had the opportunity to get to know each other very well, so the trust was there," says Pickering. "We started to share facilities and contracts. All of our decisions were driven by leverage what's already been done and build on the foundation of a company a prudent and effi cient way." Pickering also has an impressive track record in leading strategic acquisitions, which aligns with Trivest's goal to increase its geographic coverage. For months, there have been murmurs around the industry about behind- the-scenes talks with other small to midsized dealers considering rolling up as a viable succession plan. is past May, Trivest announced that the 120-year-old dealer Louis Wohl and Sons is the third dealer to join BJ Beltram. Its annual sales are now a combined $100 million and in the next FE&S the distributor will be sitting within the top 20. PICTURED (LEFT TO RIGHT): DAN BELTRAM, FOUNDER OF BELTRAM FOODSERVICE GROUP AND ROBERT PICKERING, CEO OF BJ BELTRAM.