HSI Electrical
buys competitor
American Electric
HSI Electrical Inc., one of the state's oldest electrical contracting firms, has purchased a competitor, American Electric Co., a division of California-based Amelco Corp.
HSI owner Bob Dewitz said together the two firms will generate revenues of more than $20 million per year. Bringing the two firms together is a good match, he said.
The purchase price was not disclosed.
HSI has specialized in electrical work for Navy ships and submarines while American Electric has experience in large commercial construction projects such as power plants and refineries.
Together the two firms employ about 120 people, all of whom will be retained, Dewitz said.
HSI was founded in 1947 as Kems Electric. American Electric Co. began a year earlier. In the 1980s, Kems was acquired by Honolulu Shipyard Inc. In 1994, Dewitz purchased the marine electric division, which became HSI.
Dewitz said the deal came about through a "confluence of good circumstances."
"HSI was in a lease facility and was looking to buy its own facility. By chance, they had a great facility," he said.
Dewitz said the two companies combined will likely mean better value for their customers and greater access for American Electric to federal contracts, where HSI has extensive experience.
"We'll be able to reduce some overheads," he said.