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Border is no obstacle when synergy exists

Cabinetmakers Sunrise Kitchens of Surrey, British Columbia, and Hertco Kitchens of Ferndale offer one example of a Canadian business expanding into Whatcom County. Sunrise acquired Hertco in June 2023, and the Ferndale spot is now the second location for Sunrise.

The two companies complement each other, with Sunrise’s focus on multifamily kitchen cabinet projects and Hertco on the dealer network. Together, they can be leaders in the multifamily and residential markets in both countries.”

The answers below are edited from conversations with Navjot Bhogal, Hertco Kitchens CEO, and Paul Bhogal, president and CEO of Sunrise.

  1. Sunrise acquired Hertco to expand its dealer network and tap the U.S. market. Comment?
  2. This strategic move expands Sunrise Kitchens’ expertise into the western United States and establishes a strong presence through a network of dealers targeting large-scale projects. The addition of Hertco aligns with our growth objectives and allows us to broaden our reach to serve a wider customer base. Ferndale is only a short drive from Sunrise, which allows the teams to collaborate on expanding both businesses.
  3. Why is this a good match?
  4. Sunrise and Hertco share the same passion for the industry. Both have more than 40 years in business, are family owned and operated, have aligned corporate values, and believe in the significance of creating beautiful kitchens. The two companies complement each other, with Sunrise’s focus on multifamily kitchen cabinet projects and Hertco on the dealer network. Together, they can be leaders in the multifamily and residential markets in both countries. The companies are honored to continue the journey and success built by both families and are excited for future opportunities.
  5. Can you provide a sense of the company’s size and reach?
  6. Sunrise and Hertco are leaders in the market serving residential and multifamily housing. Sunrise is the largest producer of kitchen cabinetry in western Canada for multifamily housing, manufacturing over 5,000 kitchens per year. Hertco supplies kitchen cabinets through more than 200 dealers within the western United States, Hawaii and Alaska, as well as western Canada.

The Surrey location employs 130. The Ferndale location, with 60,000 square feet, employs 35 in manufacturing only.

Sunrise recently added 35,000 square feet to the existing facility to create a total of 80,000 square feet in Surrey. The expansion includes a significant investment in automated equipment, allowing us to increase our production capacity to better serve the North American market with shorter lead times, high-quality products and overall greater value to our customers.

  1. What’s ahead?
  2. Our goal is to continue synergy between Sunrise and Hertco by broadening our product offering to increase our reach in both markets and strengthen our relationships with dealers by providing more flexibility for their customers. We plan to continue to invest in our local communities and provide high-level labor. By offering training and employment to people in our area, we can help build a stronger workforce and contribute to the local economy. A longer-term goal is to expand our dealer network to more than 500 dealers in several new regions with streamlined processes, automated production and improved customer service. By focusing on these areas, we plan to continue to operate successful and sustainable businesses that are positioned for growth and modernization.
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