Communication: The key to a successful acquisition In January 2006, Midwest Electric made a significant move to expand its Midwestern footprint by acquiring United Electric, an industrial electrical contractor based in Bellefontaine, Ohio. There were obvious synergies: both companies were electrical contractors; both served large industrial customers; both had strong operational leadership. But acquisitions typically involve a variety of changes and challenges, not the least of which is the integration of two different company cultures. In the Midwest Electric/United Electric merger, there was an additional hurdle; the transition from a non-union company (United) to a union company (Midwest), a process known as “organizing”. In the electrical contracting industry, it’s more commonplace for contractors to switch from union to non-union status, so Midwest Electric took a step in relatively uncharted waters. “Months into the process, the integration proceeded relatively smoothly – both internally and externally,” said Matt Nelson, Midwest Electric’s Chief Financial Officer, who oversees mergers and acquisitions, strategic partnerships and finance and administration. “Throughout the process, communication played a key role—with our employees, with our customers, and with the union,” he said. Part of that communication included sitting down with United Electric customers like Honda to describe Midwest Electric’s experience in serving large industrial customers such as Glatfelter (formerly MeadWestvaco), General Mills, Weyerhaeuser and Brown Corporation, among others. “We have a track record with similar types of customers, and we assured Honda from day one that we could apply our project management expertise, skills and knowledge to work for them,” Nelson said. “It has also taken time for Honda to get to know some Midwest leaders who are working with the United Electric team, such as Brad Baker (Superintendent) and Patrick Smith (Industrial Operations Manager) and the recent addition of John (Jay) Beekman.” Internally, communication was important as well. United Electric electricians had to be certified and tested by the union (International Brotherhood of Electrical Workers) to rate and assess their skills and determine their appropriate entry classification within the union. “I think the entire team including previous United Electric employees, Brad and Patrick have done an excellent job managing through the transition while continuing to provide our customers with safe, prompt and quality service,” Nelson said. Midwest’s pioneering approach to acquiring a non-union company and organizing them into a union company has attracted the attention of industry watchers, including the IBEW. “Both Midwest management and the union want to see if we can take this model and apply it to other situations where we could help a non-union contractor switch to a union model,” Nelson said. Back to: Articles Index
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