August 16, 2023


Business Banking

Acquisition Success: B&F Fastener Supply’s Triumph with Help from Deerwood Bank

Acquisition Success: B&F Fastener Supply’s Triumph with Help from Deerwood Bank

Established in 1988 in Minneapolis, Minnesota, B&F Fastener Supply has become a leading industrial and construction supply distributor in the Midwest. Built on the pillars of honesty, integrity, and exceptional customer service, the company has expanded from its inaugural Minneapolis location to serve a vast six-state Midwest region.

Setting the Stage for Expansion: The Acquisition of Northern States Supply

In early 2023, driven by their commitment to growth, B&F Fastener Supply embarked on a significant endeavor – the acquisition of Northern States Supply, a long-known competitor in the Midwest. This move aimed to fortify B&F Fastener Supply’s position by adding seven pivotal locations across Minnesota and the Dakotas. To transform this vision into reality, the company needed a financial partner capable of providing the necessary funding.

A Swift Response and Reliability

In the pursuit of the ideal partner for this acquisition, Loren O’Brien, B&F Fastener Supply’s CEO, reached out to various financial institutions. Russell Gaydos, Senior Vice President of Business Banking at Deerwood Bank, promptly answered the call. This prompt response came as no surprise to Loren, given the longstanding working relationship he had maintained with Russell. Loren attested, “My association with Russell dates back to 2009. His unwavering responsiveness has consistently shown me that he would rise to any occasion. This scenario was no exception.”

A Decision Rooted in Trust

Deerwood Bank swiftly presented a compelling proposal to support the acquisition. The pivotal choice for B&F Fastener Supply now lay in selecting a partner who could navigate the complex challenges that would come with this big undertaking.

Nicole Baltes, President of B&F Fastener Supply, disclosed, “Among the multiple proposals we received, it became clear that this deal would pose its share of obstacles. Selecting a partner capable of propelling us past these hurdles became the focus. As the deal’s intricacies unfolded, Deerwood Bank and Russell quickly emerged as the best option.”

Streamlined Process

Loren reiterated, “The transaction unfolded seamlessly, largely because of the knowledge base that Russell and the Deerwood Bank team brought to the table. Their understanding of our business and its needs really streamlined the entire process. It was all remarkably easy.”

Shared Values

A family-run entity at its core, B&F Fastener Supply treasures its organizational values, and they found these same values were being upheld by Deerwood Bank.

Nicole reflected, “Deerwood’s culture is very similar to ours here at B&F Fastener Supply. We believe that supporting and building our internal processes will always lead to a better customer experience; and ultimately the customer is the most important thing. The structure of our organizations is just really alike.”

Nicole continued, “Here at B&F Fastener Supply, we consider ourselves an accessible organization – you don’t have to go through a huge hierarchy to get an answer. It was a huge plus to see this same structure at Deerwood – quick and easy answers.”

Continuing the Journey

Nicole affirmed, “Deerwood’s adaptability and openness has been amazing. They’ve been willing to work with us to continue to build and improve services that have had a direct positive impact on our day-to-day business. They identify a pain and come up with a solution to fix it, and that’s a huge help for us as we expand.”

Loren concurred, “We are excited to continue to work with Russell and the Deerwood Bank team as we grow. Simply put, they are just able to just get things done. With other banks, there is a hierarchy that you have to go through, and that’s just not the case at Deerwood.”

John Ohlin close up

John Ohlin

Office: 218.316.3505

John Ohlin is the President and CEO of Deerwood Bank. He has been with Deerwood since 2004 and is based out of the Baxter office. John graduated from Gustavus Adolphus College with a bachelor’s degree in finance. He then went on to graduate from the ABA Stonier Graduate School of Banking in 2007. In his spare time John enjoys travelling with his wife and playing golf at the nearest course.

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