St. Louis-based distributer acquires Cape Electrical Supply

Cape Electrical Supply, a company headquartered in Cape Girardeau that has served Southeast Missouri since 1953, has been acquired by Graybar, an employee-owned St. Louis-based distributor of electrical, communications and data-networking products and provider of related supply-chain management and logistics services.

The transaction was finalized Friday.

The acquisition was made to expand Graybar’s reach.

With a network of more than 260 North American distribution facilities, officials saw Cape Electrical Supply as a good addition.

“Cape Electric is a strong regional company with a positive reputation in the industry,” Timothy Sommer, corporate communications manager for Graybar, said in an email. “Their branch footprint complements our branch network and helps us establish a presence in markets where we do not currently have locations.”

“We are a well-run organization,” Kyle Thoma, president and CEO of Cape Electrical Supply, said. “This wasn’t an acquisition for [Graybar] to fix. This was an acquisition for them to grow.”

Graybar will allow the company to continue as it has while providing financial support and resources to make the Cape Electrical Supply stronger, Thoma said.

“They want to leave us alone,” Thoma said.

Though there may be changes within the company, there are no plans to cut employees at this time, Thoma said.

Cape Electrical Supply will retain its name and its staff and will function as a subsidiary of Graybar.

“The employees realize there’s going to be change, but it will be change for the better,” Thoma said. “It’s going to be even better growth and opportunities for them.”

Cape Electrical Supply distributes electrical wholesale products to commercial, residential and industrial markets and assists those markets with on-site management. The company employs about 200 people throughout its 17 branches in Missouri, Illinois, Kentucky, Tennessee, Arkansas and Alabama.

In 2015, the company produced revenue of about $126 million, according to a news release from Graybar.

In Cape Girardeau alone, Cape Electrical Supply employs 75 people. Many of those employees have been with the company for over 25 years.

“We even have a few employees approaching 45 years with Cape Electric,” Thoma said.

Cape Electrical Supply was founded by J.P. Tlapek, a local businessman who died in June. Tlapek’s son, John C. Tlapek, bought the company in 1986 before it was bought by Chicago-based investor group Svoboda Capital Partners in 2007.

Thoma said the acquisition is a testament to the way Cape Electrical Supply is run.

“It is tremendous news,” Thoma said. “For a Fortune 500 company like Graybar to be interested in acquiring a company like Cape Electric speaks volumes.”

“We see this as a win for both companies,” Sommer said in an email, “and we are excited about the future.”

bbrown@semissourian.com

(573) 388-3630

Pertinent address:

489 Kell Farm Rd, Cape Girardeau, MO 63701