Kele acquires Texas company with eye on further expansion

By , Special to The Daily Memphian Updated: July 24, 2019 2:15 PM CT | Published: July 20, 2019 4:00 AM CT

Continuing its aggressive growth strategy, Bartlett-based Kele Inc. has acquired its third company in the past three years by picking up Dallas-based Temperature Control Systems and expanding its reach across the central U.S.

The deal gives Kele six additional locations across Texas and Oklahoma – two in Dallas and one each in Fort Worth, Austin, Oklahoma City and Tulsa.

Temperature Control Systems is a full-line stocking distributor of commercial HVAC controls and building automation systems, with customers in Texas, Oklahoma, Arkansas and Louisiana.

“The new locations will allow us to serve customers faster with products closer to them,” Kele president and CEO Richard Campbell said.

Kele manufactures, sells and distributes an extensive inventory consisting of 300-plus brands, 1.8 million items and 10,000-plus SKU’s in-stock. Items include sensors, transmitters, switches, gauges, valves, actuators and relays.

Kele formed more than 35 years ago in the Bartlett area, growing from a 200-square-foot garage space to a 120,000-square-foot headquarters at 3300 Brother Boulevard.

Temperature Controls Systems is a 40-plus-year-old business, Campbell said.

“The strengths from both Kele and TCS can be leveraged to make our two companies even stronger and serve our customer bases better,” he said. “There is minimal customer crossover between Kele and TCS. In fact, TCS was a Kele customer as well.”

The company plans to continue with more acquisitions in the near future.

“A key piece of Kele’s growth plan is strategic acquisition. That will not change,” Campbell said. “We will continue to look for those strategic locations where we need to be in order to get product closer to our customers. Our team is focused every day on how to serve our customers better, and location and speed are key to our ability to do that.”

The new entity will operate as a separate brand. Campbell will serve as president and CEO of the combined company, while Scott Cross will remain as president of Temperature Controls Systems and lead its locations.

“Temperature Control Systems is excited to join Kele,” Cross said in a recent statement. “Our customers can expect the same value-added service they’ve experienced for more than 40 years. Aligning with Kele will help us meet even more of their needs through additional product lines, services, enhanced order fulfillment, and new digital and eCommerce tools.”

While the acquisition does not directly impact Kele’s Bartlett headquarters on the front end, it will lead to everyone being busier and potential new hires.

“Kele’s expansion is definitely a plus for Bartlett. Even though it’s not a local expansion, it directly impacts the Bartlett HQ, which grows whenever the company expands nationally,” Bartlett Area Chamber President John Threadgill said. “Richard Campbell and his dedicated Kele team are doing a great job making Kele a world-class institution, and we’re proud that they call Bartlett their home.”

The acquisition is the latest in the series of moves over the past few years for Kele. In October 2017, Kele acquired Boston-based Control Consultants Inc. (CCI) and last June purchased MIControls, which has locations in Seattle and Portland, Oregon.

Now Kele, which is owned by private equity firm Snow Phipps, LLC, operates locations in Memphis, Boston, Portland, Seattle and Singapore, and customers include Johnson Controls, Siemens, Schneider Electric, Trane, Honeywell and Carrier.

The company’s value-added services include custom panel assembly, specialized sourcing and technical support, and products can be integrated into existing buildings or new construction.

Panels and products made by Kele in Bartlett can be found in offices for Facebook and Google, every Walmart store, Chevron Mobil, Dollar Tree, Amazon distribution centers and Kroger stores, as well as Apple Park at Apple headquarters in Cupertino, California; One World Trade Center and Hudson Yards in New York City; and the Gardens by the Bay in Singapore.

In 2016, Kele surpassed $100 million in sales, and Campbell is hoping to double that in the next three to four years serving the $50 billion building automation systems market. The company ships about 1,000 boxes per day around the world.

Topics

Bartlett Kele Inc.

Michael Waddell

Michael Waddell is a native Memphian with more than 20 years of professional writing and editorial experience, working most recently with The Daily News and High Ground News.


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