Feb. 17--J.C. Licht, a paint retailer with a centurylong history in the Chicago area, is opening a new distribution center and planning to expand its network of stores after its sale to a new owner last year.
Benjamin Moore sold the J.C. Licht chain to Elliot Greenberg, formerly vice president of operations at East Coast home improvement chain Ring's End, for an undisclosed amount in 2015.
Greenberg said he took an interest in J.C. Licht when it became clear Benjamin Moore was looking to sell corporate-owned stores.
"They're a world-class manufacturer and wanted to go 100 percent on that. They felt the stores would do better in the hands of someone who really understands retail," Greenberg said.
Benjamin Moore Executive Vice President of Sales Dan Calkins said the sale was "in line with our independent dealer strategy."
"J.C. Licht has a great team of dedicated professionals, and Elliot's energy will bring them to the next level," Calkins said in a statement. "We're very pleased that Benjamin Moore paints will continue as J.C. Licht's flagship brand."
Benjamin Moore paint -- which Greenberg estimated makes up about 90 percent of J.C. Licht's sales -- will remain the chain's main product. But Greenberg said he's adding to the selection of products J.C. Licht offers, including two "super luxury" paint lines, paint industry supplies and specialty tools.
J.C. Licht's first acquisition under Greenberg was Reliable Finishing Products, whose wood coating products are available at five locations, he said.
In addition to expanding the product line, Greenberg said he's "aggressively" going after new locations, aiming to hit 50 stores in the Chicago area in the next five years, up from the current 31.
J.C. Licht also has a new 38,000-square-foot headquarters, distribution center and showroom in Addison with a grand opening on Thursday, Greenberg said. The company used to operate out of Benjamin Moore's Midwest regional distribution center in Carol Stream.
Jacob Christian Licht opened the first J.C. Licht paint store in Chicago in 1907, according to a statement from the company. Paint manufacturer and retailer Benjamin Moore bought J.C. Licht in 2000, the same year Berkshire Hathaway bought Benjamin Moore for about $1 billion.
Benjamin Moore sells its paints exclusively at a network of independent dealers, rather than big-box stores and large home improvement chains like Lowe's and Home Depot.
Greenberg said Berkshire Hathaway Chairman Warren Buffett's "steadfast" commitment to sticking with individual distributors, giving them a product that distinguishes them from big-box stores, is part of the reason he bought J.C. Licht.
Greenberg declined to provide details on the company's revenue but said his goal was to hit $60 million in sales this year.
That's a fraction of what big-box competitors get. Lowe's sold $3.6 billion in paint in 2014; Home Depot's 2014 paint sales hit $7.3 billion, according to recent annual reports.
Greenberg said a smaller, independent retailer offers more expertise and personalized service. Contractors, in particular, want a company that can turn around orders "on a dime," he said.
"There's a particular kind of service needed to take care of contractors and homeowners," he said. "These are complicated, personal decisions, where you need to react to customer needs quickly. It's not something you do online."
lzumbach@tribpub.com
