Global Fastener News

Deccmber 12, 2012 FIN – Aerospace and defense fastener and assembly hardware supplier Herndon Products Inc. made its first corporate acquisition – aerospace hardware supplier Intercoastal Inc.

The company is now a wholly owned subsidiary named Intercoastal LLC and remains based in a 26,000 sq ft facility in the Seattle suburb of Kent, WA.
Intercoastal CEO and owner Stanley Litt retired upon the sale of his company.
Herndon named Intercoastal president Randie Cadwell as West Coast vice president and GM, and said it will keep Intercoastal’s 12 employees.

Herndon is headed by CEO Scott Herndon and reported 2011 revenue of $81.4 million.
Herndon said the deal emphasizes the commercial side of the aviation supply chain and bolsters a key future growth area for the company.
“Acquiring Intercoastal gives Herndon Products a strong, reliable foothold in the commercial space,” Herndon COO Dan Rodrigues said. “We anticipated changes in defense spending and put two strategies in place: add commercial contracts to our list of customers, which we’ve done during the past few years; and acquire a financially solid company in our field that serves primarily commercially based customers.”
St. Louis Business Journal reporter Matthew Hibbard pointed out that the acquisition “gives Herndon a coast-to-coast footprint.”
Herndon has its 77,000-sq ft headquarters at 3801 Lloyd King Dr., O’Fallon, MO 63368. Tel: 314 739-7400 Web: herndonproducts.com
Herndon also has facilities in Chambersburg and Scranton, PA.
The original P.B. Herndon Co. was founded about 30 years ago and was acquired in 1996 by Banner Aerospace. The current Herndon Products was formed in 2003 and is owned by HCI Equity.

• In July 2012 Herndon Products announced a $3 million, two-year contract award from the Defense Logistics Agency Troop Support supporting the Strategic Fastener Initiative. The contract includes three one-year options.
In addition, the U.S. government identified 21,488 items that could be added to the contract for a total value of $85 million.
Herndon Products had bid on 1,068 of the 1,090 items and DLA awarded the company with 627 of the 834 items contracted thus far.
• In April Herndon Products announced it won a DLA Land and Maritime operations contract to manage the Industrial Product-Support Vendor Program at the Tobyhanna Army Depot.
Herndon Products was selected after a 14-month evaluation and competition among defense contractors. The $56 million contract extends into 2017.
“Despite this challenging economic environment, Herndon Products continues to meet our growth objectives,” CEO Scott Herndon said.  “Our business is strong and financially solid.  This award will increase our managed warehouse footprint by 50% near Scranton, Pennsylvania and will add 16 new employees to our team. This brings the investment in our eastern distribution network to 65,000 sq. ft. and just fewer than 40 employees.”
Under the contract Herndon Products is responsible for supply chain services for fasteners, electronic components, bin replenishment, and other production line material associated with Tobyhanna.  Additionally, Herndon will support fulfilling the worldwide demand of other DLA customers for similar products.
The Tobyhanna contract is similar to the Letterkenny Army Depot contract that Herndon Products has been supplying since 2008.
• Herndon Products has reported annual growth rate of over 50% since its launch in 2003.
• Herndon Products cites personnel strategy for its growth. The 2008 addition of Rodrigues was followed by three strategic new hires: Patricia Cuellar as supply chain manager in 2010; Pete Harris as director of program management overseeing VMI programs; and director of business development Don Skosky.
“All four were hired from major defense contractors and are creating the required foundation for internal process improvements and broadening our leadership position in this market,” CEO Herndon said. ©2012/2014 Fastener Industry News.
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