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.
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Kewaunee 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.
"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."
"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 a continued
effort to combat global health challenges. Kewaunee is well
positioned to capitalize on future investments made in the
pharmaceutical, biotechnology, health care, universities and other
markets we serve."
About ISEC
An employee owned company for over 50 years, ISEC has delivered
innovative science and technology solutions in world-class
facilities across every marketplace. Through a national footprint
of more than 1,500, highly trained professionals, our teams of
specialists bring a solution driven competency that aids our
customers in driving revenue through improved product production
efficiencies, with a laser focus on employee safety. Our solutions
have proven to help our valued customers drive revenue, while
assisting in both talent recruiting and retention.
ISEC is committed to operational excellence, with a proven track
record of success in project execution. We have developed
dedicated, regional disciplines, all built to provide a world class
experience including design, estimating, project management,
operations & specialty equipment procurement. Our field
supervision teams and ISEC employed installation crews are selected
based on the project type matched to their individual experience
levels and skills. "We Build For Life's Most Important
Events" ISEC's website is located at:
https://www.isecinc.com/
About Nycom
Nycom is a full-service Interiors Contractor specializing in
Laboratory Construction, Architectural Woodwork and other Interior
Products. With almost 40 years of experience, the Company is
well-respected throughout the Mid-Atlantic and Southeastern United States for having superior
products and services. Nycom's "best-in-class" capabilities in
design, budgeting, engineering, managing and installation have
allowed Nycom to be an integral part of numerous successful
construction projects in the Educational, Life Science, Healthcare,
Industrial and Pharmaceutical markets. The Company is headquartered
in Richmond, Virginia with major
offices in Raleigh, North Carolina
and Atlanta, Georgia.
(www.nycominc.com).
About Kewaunee Scientific
Founded in 1906, Kewaunee Scientific Corporation is a recognized
global leader in the design, manufacture, and installation of
laboratory, healthcare, and technical furniture products. The
Company's products include steel, wood, and laminate casework, fume
hoods, adaptable modular systems, moveable workstations,
stand-alone benches, biological safety cabinets, and epoxy resin
work surfaces and sinks.
The Company's corporate headquarters are located in Statesville, North Carolina. Direct sales
offices are located in the United
States, India, Saudi Arabia, and Singapore. Three manufacturing facilities are
located in Statesville serving the
domestic and international markets, and one manufacturing facility
is located in Bangalore, India
serving the local and Asian markets. Kewaunee Scientific's website
is located at https://www.kewaunee.com.
This press release contains statements that the Company
believes to be "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. All
statements other than statements of historical fact included in
this press release, including statements regarding the Company's
future financial condition, results of operations, business
operations and business prospects, are forward-looking statements.
Words such as "anticipate," "estimate," "expect," "project,"
"intend," "plan," "predict," "believe" and similar words,
expressions and variations of these words and expressions are
intended to identify forward- looking statements. Such
forward-looking statements are subject to known and unknown risks,
uncertainties, assumptions, and other important factors that could
significantly impact results or achievements expressed or implied
by such forward-looking statements. Such factors, risks,
uncertainties and assumptions include, but are not limited to:
competitive and general economic conditions and the ongoing impact
of the COVID-19 pandemic, including disruptions from government
mandates, both domestically and internationally; changes in
customer demands; technological changes in our operations or in our
industry; dependence on customers' required delivery schedules;
risks related to fluctuations in the Company's operating results
from quarter to quarter; risks related to international operations,
including foreign currency fluctuations; changes in the legal and
regulatory environment; changes in raw materials and commodity
costs; and acts of terrorism, war, governmental action, natural
disasters and other Force Majeure events. The cautionary statements
made pursuant to the Reform Act herein and elsewhere by us should
not be construed as exhaustive. We cannot always predict what
factors would cause actual results to differ materially from those
indicated by the forward-looking statements. Over time, our actual
results, performance, or achievements will likely differ from the
anticipated results, performance or achievements that are expressed
or implied by our forward-looking statements, and such difference
might be significant and harmful to our stockholders' interest.
Many important factors that could cause such a difference are
described under the caption "Risk Factors," in Item 1A of our
Annual Report on Form 10-K for the fiscal year ended April 30, 2021, which you should review
carefully, and in our subsequent quarterly reports on Form 10-Q and
current reports on Form 8-K. These reports are available on our
investor relations website at
www.kewaunee.com and on the SEC website at
www.sec.gov. These forward-looking statements speak only
as of the date of this document. The Company assumes no obligation,
and expressly disclaims any obligation, to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Contact:
Donald T. Gardner III 704/871-3274
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SOURCE Kewaunee Scientific Corporation