The other shoe has dropped, and distributor consolidation continues apace.
Marking their second acquisition in less than a month, Automotive Keys Group, a portfolio company of Kinderhook Industries, has bought International Key Supply. Terms of the acquisition weren’t disclosed. In March, AKG announced that it purchased Midwest Key Supply.
IKS had until a week ago been under the banner of Security Pro Supply in partnership with H.L. Flake, H.E. Mitchell and McDonald Dash. Those three distributors were purchased at the beginning of April by Banner Solutions.
At the virtual trade show held jointly by H.L. Flake and IKS, Ayal Sharvit, CEO at AKG says the purchase was part of the company’s strategy “to bring together the premier locksmith suppliers in the automotive space.” He further teased a local marketing strategy expected to be unveiled later in 2021.
Although neither company commented on how this deal would affect locksmiths, when AKG bought Midwest Key Supply, AKG representatives told us that they were expecting no change and that the Midwest name would remain in the market. A press release noted that IKS Founder and President Sean McAuliffe would join the AKG leadership team and continue to lead IKS operations.
“IKS has quickly established itself as a leader in supplying automotive remotes, and we will greatly benefit from welcoming Sean McAuliffe and his team to AKG,” Sharvit says in the press release. At the trade show, McAuliffe says he was looking forward to being a part of AKG's burgeoning network.