Thanks for your writeups! I saw your analyse on Ferguson and Masco, do you know RCH.TO? I think it’s perfect for your. It’s Canadian company but a serial acquirer (Roll Up) in hardware.
Yes Richelieu is a strong company, high ROIC ~20%, good capital allocation and high insider ownership. Richelieu is a distributor of specialty hardware in Canada and US - have been trying to identify closest direct competitor but struggled with this - do either of you know who it could be? (I actually think it might be Masco Although masco focuses more on manufacturing as opposed to distribution) if you find any useful info on Richelieu then please do share.
Great write-up on Masco! I have followed and owned Richelieu for many years being based in Montreal myself. Richelieu is 80% a distributor of 130k SKUs to B2B manufacturers - to manufacturers directly like cabinet accessories, knobs, fasteners, bolts, hooks, decorative accessories, etc... - and 20% distributor to DYI retailers. So main customers are manufacturers and woodworker. I think there is minimum overlap with Masco except maybe their decorative business.. I am planning to do a write-up on Richelieu..
Hi Govro i would be keen to read your take on Richelieu. I have read that they are market leaders with some 50% market share of the specialty hardware distribution market for the remodeling/renovation industry. Do you have any insight on this or any info to who there largest competitors are? Is this only regional distributors?
Door knob: if you are in Canada there is a great chance that the knob of your interior door or the kitchen cabinet is from Richelieu home. Builders retailers.carries Richelieu hardware. The rails in the kitchen cabinets even the shower .. now recently the glass fences around a pool. They have exclusive SKUs.. compétition is based on the.product - external door knob would be Weiss etc
Yes Richelieu is a strong company, high ROIC ~20%, good capital allocation and high insider ownership. Richelieu is a distributor of specialty hardware in Canada and US - have been trying to identify closest direct competitor but struggled with this - do either of you know who it could be? (I actually think it might be Masco Although masco focuses more on manufacturing as opposed to distribution) if you find any useful info on Richelieu then please do share.
RCH does not have direct competitor but many different competitors in each segment. RCH build a new model in the hardware world. Maybe I will do a writeup on RCH.
Yes exactly - competing in a fragmented market against regional distributors - compete against different players depending on the product type. If you do a writeup then please let me know - i would be keen to read !
Thanks for your writeups! I saw your analyse on Ferguson and Masco, do you know RCH.TO? I think it’s perfect for your. It’s Canadian company but a serial acquirer (Roll Up) in hardware.
Hi Max and Marathoner,
Yes Richelieu is a strong company, high ROIC ~20%, good capital allocation and high insider ownership. Richelieu is a distributor of specialty hardware in Canada and US - have been trying to identify closest direct competitor but struggled with this - do either of you know who it could be? (I actually think it might be Masco Although masco focuses more on manufacturing as opposed to distribution) if you find any useful info on Richelieu then please do share.
All the best,
Ties
Great write-up on Masco! I have followed and owned Richelieu for many years being based in Montreal myself. Richelieu is 80% a distributor of 130k SKUs to B2B manufacturers - to manufacturers directly like cabinet accessories, knobs, fasteners, bolts, hooks, decorative accessories, etc... - and 20% distributor to DYI retailers. So main customers are manufacturers and woodworker. I think there is minimum overlap with Masco except maybe their decorative business.. I am planning to do a write-up on Richelieu..
Hi Govro i would be keen to read your take on Richelieu. I have read that they are market leaders with some 50% market share of the specialty hardware distribution market for the remodeling/renovation industry. Do you have any insight on this or any info to who there largest competitors are? Is this only regional distributors?
Door knob: if you are in Canada there is a great chance that the knob of your interior door or the kitchen cabinet is from Richelieu home. Builders retailers.carries Richelieu hardware. The rails in the kitchen cabinets even the shower .. now recently the glass fences around a pool. They have exclusive SKUs.. compétition is based on the.product - external door knob would be Weiss etc
Thanks Max, no I don’t know it; is there a write up on it you could share/recommend?
No sorry, it's not a popular company or sector. But the company is very good and ceo have ~7.75%
I published the part 1 of a deep dive on richelieeu hardware is my substack yesterday wintergems.substack.com
And part 2 ... I think you will appreciate i. Particular the competition section of part2
Excellent write-up, enjoyed reading.
Thank you Jon, appreciated! More write ups to come in future weeks...
Hi Max and Marathoner,
Yes Richelieu is a strong company, high ROIC ~20%, good capital allocation and high insider ownership. Richelieu is a distributor of specialty hardware in Canada and US - have been trying to identify closest direct competitor but struggled with this - do either of you know who it could be? (I actually think it might be Masco Although masco focuses more on manufacturing as opposed to distribution) if you find any useful info on Richelieu then please do share.
All the best,
Ties
RCH does not have direct competitor but many different competitors in each segment. RCH build a new model in the hardware world. Maybe I will do a writeup on RCH.
Max - where do you share your writeups?
And what do you think of Richelieu?
If I do a writeup I will send the link here.
Thank you !
Yes exactly - competing in a fragmented market against regional distributors - compete against different players depending on the product type. If you do a writeup then please let me know - i would be keen to read !