Business
Kewaunee Scientific Corporation Announces Changes to Domestic Channel Strategy
STATESVILLE, N.C., Jan. 5, 2022 /PRNewswire/ -- Kewaunee Scientific Corporation (NASDAQ: KEQU), a recognized global leader in the design, manufacture, and
About this update from Kewaunee Scientific Corporation
[{"type":"text","content":"STATESVILLE, N.C., Jan. 5, 2022 /PRNewswire/ -- Kewaunee Scientific Corporation (NASDAQ: KEQU), a recognized global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products, today announced a change in its go-to-market channel strategy for the sale and distribution of its products. Kewaunee has historically sold products domestically through a network of dealers and distributors. In regions where those channel partners were insufficient to serve the market, Kewaunee has sold directly to general contractors or the end customer, capturing opportunities that otherwise might be missed. While Kewaunee's direct business has grown, it has also created inefficiencies that have adversely affected the profitability of the business. \n\n \n \n \n \n \n \n\n \nKewaunee is excited to announce it has secured long-term agreements with its two largest dealer partners, Nycom and ISEC, two of the premier specialty sub-contractors in the industry. Effective immediately, territories where Kewaunee has historically sold direct will be covered by Nycom and ISEC. This change in Kewaunee's go-to-market strategy will streamline the Company's focus on delivering high quality manufactured products. Nycom's expanded territory will now include New York, New Jersey, Delaware, and all of Pennsylvania. ISEC's expanded territory will include Illinois, Arkansas, and Oklahoma. \n\"Over the past year, Kewaunee conducted a comprehensive evaluation to optimize our go-to-market strategy,\" said Thomas D. Hull III, President and Chief Executive Officer of Kewaunee Scientific Corporation. \"Through this process, we identified a significant opportunity to drive sustained profitability and shareholder value by further improving the performance of the Company's manufacturing capabilities while simultaneously securing long-term commitments from important channel partners to penetrate more deeply the markets into which we previously sold directly. This change will allow us to simplify our business, strengthen partner relationships, and focus on being a world class manufacturer to serve our dealers and distribution partners with excellence.\"\n\"As I have stated previously, I expect that global demand for Kewaunee's products and services will continue to increase as the world continues to rely on our industry as there is...