And to say that this conglomeration of companies will have little affect on the consumer is extremely short sighted as a lack of competing businesses are a sure route to excessive pricing via a lack of competition.
When you consider that ASAP purchases a decent % of its parts from A&I a distributor, and every JD dealer is a dealer for A&I (A&I is owned by JD), along with most other ag dealers. I would guess the three big distributors A&I has 10,000 dealers in the US, with SMA around 8,000, and Atlantic around 5,000. I am not sure how one large retailer is going to hurt the competitive nature of the business. When you add in that Reliable Aftermarket Parts, Shoup, and Sloan Express are large retailers as well. The market for aftermarket ag parts is very well distributed with nothing close to a monopoly going on. I would guess that ASAP holds less than 5% market share for the retail US aftermarket agricultural parts market.
The most common trail for good companies to become lousy companies.
Buy out and absorb then get bought out by an entity with no interest in what the business does or will do as long as the "shareholders" make money.
This is definitely something that I could see happening with ASAP. The current president is from the automotive parts industry.
Below is the most comprehensive list of companies I could find.
All States Ag Parts is the parent company of All States Ag Parts, Arrow Material Handling Attachments, Combine World, Fawcett Tractor Supply, Hoye Tractor, Tractor Joe, Summit Supply, Trojan Tracks, Romac Industrial Parts, Steel Tracks, Inc., RubberTrax, Yesterday’s Tractors, H&R Construction Equipment Parts, Burns Industrial Supply, John F Mahaney Co., and Contrax.
Agricultural parts was my life for years. I have seen many changes occur and part of my job was to estimate the impact on the market from large moves such as Hershel exiting the tractor parts market, Nivel purchasing all the engine parts suppliers, the purchase of TISCO by SMA, purchase of A&I by JD, and Atlantic Quality Parts purchased by Arrowhead. I can definatively say that even if ASAP buys one of the three big distributors there will have to be alot more consolidations to occur before an impact is felt by the consumer.