Boulder, Colo-based retailer Smoker Friendly has completed the acquisition of Richmond-Master Distributors Inc., adding 54 Low Bob’s stores in Indiana to its existing footprint in the state.
Smoker Friendly now operates 80 stores throughout Indiana.
“We are very pleased to welcome the Low Bob’s team to the Smoker Friendly family,” said Terry Gallagher Jr., president of Smoker Friendly. “Pat and Scott Carrico and the Richmond-Master team have been longtime friends and leaders in the tobacco outlet channel. We are fortunate to make this acquisition and strengthen our Smoker Friendly footprint in Indiana bringing our store count to 80 in the state.”
Acquisition Rationale
For Gallagher and Smoker Friendly, the acquisition was a no-brainer.
“The Low Bob’s stores were very well operated, had quality management and great people in the stores. The acquisition is very accretive to our business,” mentioned Gallagher. “We already have 26 stores in Indiana, so this bolts on nicely with the existing footprint and field management already in place.”
In terms of the market, Gallagher felt comfortable expanding the business in Indiana, noting that it is “wonderful to do business” in the state.
“It is a very business friendly state both at the local and state level … Demographically, Indiana is a very good state for our typical consumers, so that makes expansion appealing. In addition, the workforce and pool is full of really good people who have a great work ethic, are friendly and willing to learn and take ownership in their positions,” he stated.
People-First Decision
Gallagher and the Smoker Friendly team believe that the true power of this acquisition lies with the people that come along with it.
Smoker Friendly plans to keep stores similar operationally, retaining as many Low Bob’s employees as possible.
“We feel very fortunate to get a great team already in place. Not just the store managers and their great associates, but also field management and supervision, IT and facilities management,” he said. “It may sound overused or even corny to some, but people are our greatest asset and we know the Low Bob’s team will integrate smoothly into our Smoker Friendly family and as our other acquisitions have done, make us a stronger and better organization.”
“Indiana has really great people,” Gallagher added. “We appreciate the opportunity to be an employer in Indiana and get such great team members.”
Plans Post-Acquisition
Smoker Friendly will begin rebranding the former Low Bob’s stores to the Smoker Friendly banner immediately, with plans to leverage the Smoker Friendly brand further in Indiana.
“In the short-term the integration of these 54 stores will be of the utmost importance. We will introduce our SF tobacco brand family to the stores and there will be other additional products, remerchandising and pricing decisions as we move forward,” noted Gallagher. “We will continue to look at opportunities and, if they are right for us, we will move on an acquisition. There are many small to mid-size operators that have very nice businesses that are continually evaluating their exit opportunities, and when the right fit comes along we will act.”
Founded in 1991 and headquartered in Boulder, Colo., this is the seventh acquisition Smoker Friendly has transacted in the last four years, bringing the store count to 344 in 13 states. The Cigarette Store (TCS) is the largest licensee of Smoker Friendly International, and the largest tobacco store retailer in the U.S. TCS operates a mix of tobacco stores, cigar lounges, liquor stores and fueling locations under the names Smoker Friendly, Tobacco Depot, Smoke ‘N Go, Havana Manor and Gasamat, in addition to its e-commerce site, paylesscigarsandpipes.com.