(Note: This story appears in the February 2023 issue of SE Magazine)
Nalpac has acquired boutique distributor ENTRENUE in a move that boosts the overall profile for both brands.
T-Mobile and Sprint. The Walt Disney Company and 21st Century Fox. Heinz and Kraft. Elon Musk and Twitter. AT&T and Time Warner.
All of the above are examples of seismic industry-specific acquisitions. Mergers and acquisitions are, after all, a natural rhythm of business.
Now, you can add Nalpac and Entrenue to that bunch.
Nalpac, based in Ferndale, Michigan, announced on Jan. 3, 2023 it had purchased the Scottsdale, Arizona-based Entrenue.
The move comes as part of a rapid expansion for West-Coast-based warehouse and offices, along with an award- winning staff with multiple tenure team members. In what may have been one of the best-kept secrets in the industry, the acquisition of Entrenue by Nalpac has given both companies’ manufacturing partners and customers an excellent opportunity for growth kicking off the year.
“We have admired Entrenue and had a longstanding relationship with Joe (Casella, CEO and owner of Entrenue) and the team there,” says Steve Craig, Nalpac CEO. “The acquisition rolled naturally over time as Joe was looking to retire.”
Nalpac was purchased by Steve and Andy Craig in 2017. Since then, the Craig brothers have transformed Nalpac in all aspects and have become leaders in the space, always looking for ways to make improvements that benefit not just themselves but both their partners and customers.
“Our team is excited about the merger with Entrenue and their outstanding staff, who share the same commitment to providing the highest level of service to every customer. For Nalpac, this expansion supports our continued vision for growth across all sectors of the sexual health and wellness community. Joe spent years building a unique business that has become a one-of-a-kind distribution model transcending adult distribution,” said Steve in a press release announcing the deal.
Casella echoed the excitement surrounding the move.
“After 16 years of owning Entrenue, it is time for me to move on,” he said in the same press release. “I have accomplished everything I had in my sights during that time, including bringing pleasure and joy to millions of people, donating a ton to charity, improving thousands of small businesses along the way, and supporting the livelihoods of my dedicated staff every day. I wanted to sell to an ethical team who had a proven track record of success, an excellent reputation and had impressed me over the years.
“After speaking with the Craig brothers from Nalpac, it was clear to me that they were my top choice,” Casella continued. “After hearing their story and what they did with Nalpac, never hearing a bad word about them from my peers, and seeing them included regularly by new suppliers about conversations in brand exclusivity, they stood out to me. After dealing with them over the last several months in this deal, I see that I made the right choice. They are kind, have integrity, and have exciting plans to grow my baby…make that my 16-year-old. Thank you again to my talented suppliers, incredible retailers, and my dedicated staff, who happen to be my family away from home.”
Despite the acquisition, Nalpac and Entrenue would remain as separate businesses with the latter continuing to operate as the established boutique distributor it has been while Nalpac will continue ahead as a full-service distributor.
“Our intention is to maintain all that Entrenue has created and work with our partners respectively evaluating all opportunities which will benefit customers,” says Steve. “Nalpac and Entrenue are two companies with a great synergy that are now working together to accomplish great things!”
The benefits for both Nalpac and Entrenue manufacturing partners are vast, with the ability to reach an expanded database of customers. In time, retailers will have access to
a broader range of brands and product selections across all categories. Each business will continue to operate in Ferndale and Scottsdale with a full staff and in current locations while working with customers and suppliers through a respectful transition of ownership.
Over the course of the next year, both teams will be working together to streamline logistics, shipping and integration, and the introduction of Nalpac’s technology systems. The process will be focused on retaining the soul and mission of Entrenue while making doing business with Entrenue more effortless for customers and suppliers.
“For Nalpac, this expansion supports our continued vision for growth across all sectors of the sexual health and wellness community,” says Steve. “In the near future, Nalpac will be able to leverage a second, West-Coast-based distribution center, which will benefit many customers who operate or ship to the Western states. In the long term, both companies, suppliers, and customers will benefit from the larger scale, enhancing our ability to innovate and provide world-class service.”
“Our intention is to maintain all that Entrenue has created and work with our partners respectively evaluating all opportunities which will benefit customers. Nalpac and Entrenue are two companies with a great synergy that are now working together to accomplish great things!” — Steve Craig, Nalpac CEO
Customers will continue to order from both Entrenue and Nalpac, as always.
“The first part of the year will simply be getting to know each other and learning from one another,” says Steve. “Each business will continue to operate in Ferndale and Scottsdale with a full staff and in current locations while working with customers and suppliers through a respectful transition of ownership.”
Existing customers are encouraged to reach out to their sales reps for updates as they’re available.
“There’s never a better time for a new beginning than a new year,” adds Steve. “The deal came together very quickly, and both teams didn’t want to delay sharing the news. The industry has had a strong 18 months, and the timing supports laying a foundation for collaboration and optimization to support manufacturers and retailers in navigating retail marketing in the coming year. We’re eager to get to know the Entrenue team, customers, and suppliers.”
For more information, visit nalpac.com or entrenue.com.
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