Van Meter’s link in the nation’s electrical supply chain is powered up.
Some companies stand the test of time better than others. Founded on the eve of The Great Depression and still growing nearly a century later, Van Meter is one of those companies that is wired for success.
Today, the Cedar Rapids-based wholesale electrical supply distributor operates 25 locations in seven states, where its more than 800 employee-owners stock, support and sell thousands of automation, electrical, datacom, lighting and power transmission products and services.
That includes eight locations and 300 employee-owners in Minnesota and Wisconsin that joined the Van Meter family just last year — at the height of the pandemic — where the company purchased the remaining equity of Werner Electric Ventures, LLC, an entity that was a 50-50 joint venture in that region over the past two decades.
“It was a big moment in our history,” recalled Nate Jensema, Van Meter’s chief financial officer. “We understood the similarities and synergies between our two organizations. Our joint venture had operated successfully for 20 years, and the company was a good fit for us.”
Because it would be the largest acquisition in the company’s history, Van Meter turned to their bank to discuss financing options.
Van Meter had moved its banking relationship to Commerce Bank two years earlier after evaluating new bank partners to help with potential financing needs for their future growth plans, which included a new Kansas City distribution center. “Commerce distinguished itself by taking a proactive approach to learning about us, finding out what was on the horizon and showing how they could support us,” Jensema explained.
As Van Meter’s primary banking partner, Commerce helped assemble and lead the team of banks that would provide the syndicated loan needed to complete the Werner acquisition.
“On any large transaction, there will be bumps in the road,” Jensema added. “Commerce understood the importance of what we wanted to accomplish and acted with transparency throughout the process.”
“On complex projects, success usually comes down to the people on your team,” he added. “The team we worked with at Commerce was incredible. It sometimes meant working late nights or weekends, but the Commerce team responded with whatever we needed to keep the project moving forward.”
When the supply chain slowed and lead times lengthened later in the year, Van Meter made the decision to increase inventory, which meant making greater use of their line of credit. “It’s gone smoothly because the lines of communication between us and Commerce are always open.”
Today the electrical distributor works with Commerce for a variety of commercial lending, treasury and investment needs. “We appreciate having a bank that supports us,” said Jensema. “They understand the special challenges we face as an employee-owned business.”
