Global Industrial Company (GIC) Sidoti September Small-Cap Virtual Conference summary

Business overview and strategy

• Operates as a value-added industrial distributor with $1.35 billion in sales, integrating both organic business and the Indoff acquisition.

• Focuses on big and bulky, non-conveyable freight, differentiating from larger competitors in a fragmented market.

• ACE strategy (Accelerating the Customer Experience) centers on customer-centric decisions, product availability, and cost efficiency.

• Serves diverse end markets, with light manufacturing as the largest, and expanding into healthcare and hospitality.

• E-commerce is a major channel, with 60% of transactions online and ongoing investment in digital capabilities.

Product development and private brand focus

• Private label products, under the “Made to Exceed” tagline, account for about 50% of organic business and offer higher margins.

• Continuous product innovation based on customer feedback, with recent launches in portable power stations, pallet racking, and high-end lockers.

• Private brand products deliver a 15-20% margin premium over national brands, supporting margin resilience.

• Ongoing expansion of private label penetration, with no fixed target but significant runway for growth.

Sales model and customer acquisition

• Utilizes a multi-channel sales approach: e-commerce, inside sales, outside sales (via Indoff), and group purchasing organizations.

• Emphasizes customer retention and satisfaction, using surveys and direct account management to build loyalty.

• One-to-one selling model with 200 inside sales reps and robust account management to drive share of wallet.

• Focuses on being a one-stop shop for SMBs, filling gaps left by both small regional and large national distributors.