Coatings World - MAY 2017

Michael’s father Eugene Smith joined the company in the early 1950s, and became president. Michael succeeded his father and became president in 1986.

In 1992, Smith Chemical was purchased by Howard Greenwald and Lansco Colors, and became the Smithchem Division of Lansco Colors.

“We grew the business and had a great relationship,” said
Don Greenwald, Lansco Colors’ CEO and president. “At the
right time, we sold it to JNS, and they became our representa-
tive in the east. Nobody knows the industry better than Michael,
and Bob is a technically accomplished well-liked sales execu-
tive and marketing professional. I can’t say enough good things
about them.”
In 2005, Smithchem acquired Jesse S. Young Company,
forming Smithchem & Young and expanding its territory from
New England and south to Virginia as well as adding new
product lines. “That acquisition worked very well. Irv Young
was retiring and looking to sell,” Smith noted. “A lot of New
York-based manufacturing companies were moving south and
we decided to follow them. It was a perfect fit, as none of our
product lines were in conflict. They brought in additives, resins
and other products that strengthened our presence throughout
the East Coast.”
The major move came in 2009, when JNS Supply Co., led by
Jachts and Newfield, acquired the Smithchem & Young Division
from Lansco, and formed JNS-SmithChem, LLC.

“Usually there are conflicts of interest, but this was perfect
fit, which is so unusual,” Newfield added. “We see deals weekly,
and see the conflicts that arise, but no one gave up anything.
If you want to grow, you have to extend your territory. It has
worked out really well for our company.”
One sign of a successful distributor is its long-standing re-
lationships with principals. JNS-SmithChem has many whose
long-term mutual efforts have continued for decades.

“We have 30 principals, which is very manageable,” added
Bob Whiteley, JNS-SmithChem’s EVP. “We sometimes turn
down taking on more principals, as it could reduce our ability
to offer quality representation to each of our product lines.”
“Some of our long-term relationships with principals such as
R.T. Vanderbilt, OMNOVA (formerly Eliokem and Goodyear
Chemical) and Mississippi Lime go back more than 50 years,”
Smith added.

Changes in the Distribution Industry

The chemical industry has undergone a major transformation in recent years. The same is true for chemical distribution and the customer base it services.

“Several regional distributors have been consolidated into larger national suppliers, while many small customers have been absorbed by larger companies or private equity. Yet so many good suppliers understand the importance of relationships with their distributors as a valuable adjunct to their companies,” said Newfield.

JNS-SmithChem CEO Darren Jachts said that the ability to
provide excellent, customized service is a key differentiator for
the company. As an example, Jachts noted that JNS-SmithChem
has one large customer for which they partnered top create spe-
cial barcode labels.
“JNS-SmithChem is privately owned by owners, with
each partner having over 30 years in the industry and each
are fully committed to the business,” said Jachts. “Being pri-
vately owned, we can make decisions quickly and do certain
things for our customers that larger companies simply cannot.
We have a sister company, Jachts Columbia Can, LLC in the
industrial packaging business. Our ability to deliver a com-
prehensive line of raw materials and containers with prompt
shipments via our own fleet of company-owned trucks is of
tremendous value.”
Improved service is of critical importance to customers.
“Customers expect better and faster service and immediate
response on inquiries,” Smith noted. “Our sales people have to
be accessible at all times.”

“Our customers and suppliers depend on us to hold adequate inventories as they strive to reduce their own. Our suppliers have cut back on sales staff and lean on us to handle more and more of their sales and supply chain requirements,” Newfield observed.

The Future for JNS-Smithchem JNS-SmithChem’s leaders see a bright future ahead as the company begins its second century of service.

“You have to make moves to grow your business,” Newfield
noted. “So much is timing. We like where we are now.”
“We feel there will always be a need by suppliers for good
distributors with close customer relationships and also from
customers who are looking for people to help them solve their
problems and develop new products,” Whiteley said. “That’s
where distributors provide the most value.”
“We consider ourselves experts for each product line that
we represent,” added Smith. “Adding sales representatives with
technical experience will be critical based on the increased de-
mands put on us from our customers and suppliers. We now
have a presence in the Midwest with our distribution center
in Akron.

“In conclusion, we expect continued growth through territory expansion and prudent acquisition,” Smith added. “We can move fast, which is a huge advantage for our company.” CW