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“BY COMBINING TYLER’S ENERGY-EFFICIENT TECHNOLOGIES WITH HILL PHOENIX REFRIGERANT-REDUCING SECOND NATURE SYSTEMS, OUR CUSTOMERS WILL HAVE THE MOST SUSTAINABLE PRODUCT ANSWERS IN THE MARKET.”

—BILL JOHNSON,
PRESIDENT AND CEO OF
HILL PHOENIX

 


Hill PHOENIX Inc., based in Conyers, Georgia, designs and manufactures an extensive line of refrigerated display merchandisers, specialty display cases and fixtures, commercial refrigeration systems, mechanical centers and integrated electrical distribution products, and walk-in coolers and freezers. A national sales and marketing organization and a focused group of company-owned and operated service and support centers work together with a nationwide authorized dealer network to bring supermarket retailers throughout North America the ability to sell more products more profitably and more responsibly.

The origin of Hill PHOENIX dates back to 1887, when C.V. Hill, a New Jersey grocer, designed and built a refrigerated case with a unique “butter slide” for his own use. A neighboring grocer heard of the unit and bought one on the spot. Word of Hill’s cases spread, and Hill established his first factory in 1889. By 1896, Hill Refrigeration began to receive orders from the government and steamship operators as well as from grocers. In the 1920s, Hill developed the industry’s first top display case, which allowed customers to view the merchandise inside.

Over the next few decades, Hill Refrigeration cemented its position as an innovator and leader in the industry. Other firsts for the company included most notably the first freezer case, which helped to establish the retail frozen food business in grocery stores; the first allmetal case; the first service deli case with mezzanine shelving and storage in the bottom area; the “add-a-unit” feature, which was developed in 1936 and allowed cases to be joined together in a continuous lineup; the three-deck open dairy case, a breakthrough that maintained temperature on each level while showcasing a greater quantity and variety of product; and the self-service open frozen food case with the “add-aunit” feature and automatic defrost.

With the arrival of the 1970s came the nation’s first real energy crisis, and Hill responded by improving the energy efficiencies of its cases and by developing technologies to allow grocers to capitalize on the most efficient refrigeration systems for their specific needs.

In 1988, entrepreneur Grant Brown started Phoenix Refrigeration Systems and completely changed the nature of system design with innovative ideas such as the introduction of the first prefabricated mechanical centers and electrical distribution centers. Phoenix was also the first systems manufacturer to offer store engineers the opportunity to customize to their specifications the systems they wanted for their stores. Phoenix Refrigeration Systems quickly became a leading designer and manufacturer of refrigeration systems in the United States.

In 1993 Phoenix Refrigeration was looking to expand the business due to conversations with key customers about their significant growth plans. These customers wanted assurance that their growth could be supported by Phoenix. Dover Corporation, with the financial strength to invest in the company in a way that would enable it to grow to meet the needs of customers, became the perfect match.

HILL PHOENIX IS FORMED
Phoenix Refrigeration Systems was acquired by Dover Corporation in 1993, and in 1994 Phoenix acquired Hill Refrigeration to form Hill PHOENIX. The merger of Phoenix, a systems manufacturer, with Hill, a manufacturer of refrigerated display cases, was a natural. As a key company within the Dover Diversified operating segment of Dover Corporation, a new customer-focused company would begin to take shape.

Hill Refrigeration was sold to Dover because its ownership lacked the necessary resources to develop the full potential of the company. Hill Refrigeration had a very good reputation for building a quality product. However, it was strapped with very old facilities and lacked a vision for the future. All Hill needed was a parent that would see the potential and invest in the growth. The ownership of Phoenix Refrigeration and the management team at Dover saw great long-term potential in combining the two companies.

Today, the Display Case and Specialty Products Divisions of Hill PHOENIX are located in a 650,000-square-foot facility in Chesterfield County, Virginia. Outfitted with state-of-the-art equipment and the latest manufacturing processes, it has become the premier manufacturing facility for the production of display cases in North America.

The Refrigeration Systems Division is located in Conyers, Georgia, in a facility that was the original home of Phoenix Refrigeration. The 185,000-squarefoot facility today houses the industry’s leading design and engineering staff, dedicated to bringing customers system designs that help them succeed in their efforts to promote sustainability in the ever-increasing intensity of governmentmandated environmental activism. Whether it’s traditional direct expansion (DX) parallel compressor systems, prefabricated mechanical centers, or distributed refrigeration systems, Hill PHOENIX leads the way in system design, engineering, and manufacturing excellence.

The Hill PHOENIX Power Systems group is also located in Conyers, and custom designs and manufactures a wide variety of pre-assembled, pre-wired, integrated electrical distribution products including PowerCenter, PowerPlus, PowerOn, PowerFlow, and PowerControl. All of these products reduce construction time and costs for stand-alone buildings or strip centers, both in new construction and remodels. Typical applications are supermarket, convenience store, retail, warehouse, data center, and manufacturing operations.

Hill PHOENIX began manufacturing walk-in cooler and freezer panels in 1999 at a 100,000-square-foot facility located in Covington, Georgia. In 2000, Hill PHOENIX acquired the National Cooler Company in San Dimas, California. Today, two manufacturing facilities provide panel and door products for supermarket and convenience store customers throughout the United States.

A FOCUS ON SUSTAINABLE TECHNOLOGIES
A clear point of differentiation for Hill PHOENIX is its long-standing focus on developing industry-leading sustainable technologies. In 1996, Hill PHOENIX was the first to introduce secondary coolant refrigeration technology to the supermarket industry both as a “green” environment initiative and as a system with positive design advantages over conventional refrigerant direct expansion systems. After six years of field testing at many of the top U.S. supermarket chains, the company branded its secondary coolant technology SecondNature®.

Today, Hill PHOENIX SecondNature systems offer retailers the widest variety of eco-friendly system designs for both low and medium temperature applications. A charter member of the United States Environmental Protection Agency’s GreenChill program, Hill PHOENIX received the 2009 EPA Ozone Layer Protection Award and also received the 2008–2009 GreenChill Distinguished Partner Award.

Always viewed as a forward-looking company, Hill PHOENIX continues to grow its leadership position in the industry with products focused on making supermarket operators more operationally and financially effective. The May 2008 introduction of the innovative S-Series line of Specialty Refrigerated Service Cases was a revolutionary change in service case technology. S-Series combines a sleek, European look with many options that include state-of-the-art Coolgenix™ refrigeration technology. This proprietary secondary coolant technology significantly increases product shelf life and dramatically reduces product shrinkage.

TYLER REFRIGERATION
As an industry leader, Hill PHOENIX is always looking for opportunities to bring new technology, innovative products, and enhanced service to its customers. When Hill PHOENIX learned that Carrier Corp., a United Technologies Company, was looking to divest its Tyler Refrigeration assets, Hill PHOENIX began to evaluate its potential as a strategic fit for the company.

Tyler Refrigeration was founded in 1927 by Jerry Tyler as the Tyler Sales Fixture Co. in Muskegon, Michigan. His goal was to bring innovative marketing techniques and new technologies to the grocery store. Tyler soon became a leading manufacturer with several “firsts” in the design and implementation of display merchandisers and sectional cold rooms. Over the next 40 years, Tyler grew to become the number-two supplier of refrigerated display cases in the United States with a strong customer base in the upper Midwest region of the country. It also became a leader in “green” technology when, in 1992, the company introduced Enviroguard™, a patented refrigeration system designed to reduce refrigerant charge, one of the early inventions directed at reducing the amount of ozone-depleting substances from the atmosphere.

Carrier Corporation purchased Tyler in 1997. By 2008, Tyler had a manufacturing facility in Niles, Michigan, and five sales and service branches in the United States and Mexico. Its primary products were standard cases, buyouts, rack systems, and service and installation, and it was the number-three manufacturer of refrigerated display cases in the United States. Following a series of relocations of its manufacturing operations and a strategic review of the business, Carrier decided to divest itself of the division.

Hill PHOENIX was strategically interested in the acquisition of certain Tyler assets because it would give the company the ability to access new customers, expand service and customer support to existing customers through its sales and marketing organization, and improve case technology. Having added the capacity to absorb the majority of incremental volume, Hill PHOENIX could consolidate Tyler’s volume into its existing facilities, thus reducing its cost base. Tyler technology patents would also allow Hill PHOENIX to expedite its own technology development by integrating Tyler’s key technologies, including TC Coil and Airwave, into Hill PHOENIX coil and airflow development, producing technologies that reduce energy costs and environmental impact, a significant driver to future growth in the industry.

On May 8, 2009, Hill PHOENIX completed the acquisition of certain assets of Tyler, including five branch operations and the intellectual properties of Tyler. Since then, Hill PHOENIX has been able to seamlessly fold Tyler Refrigeration products into Hill PHOENIX’s basic product lines.

SYNERGIES REALIZED; OPPORTUNITIES AHEAD
Hill PHOENIX is already achieving benefits through the synergies of the acquisition. The key benefit derived thus far has been integrating Tyler/ Carrier technologies such as TC Coil and Airwave into existing Hill PHOENIX products and new technologies. The company will be able to deliver more value by increasing energy efficiency, which has been critical for customers who purchase cases based on total cost of ownership. Expansion of the Hill PHOENIX branch service and support network allows better asset utilization, improving the level of customer service while rationalizing branch cost structure.

Additional synergies realized include expanded service and installation options for Hill PHOENIX new and existing customers and increased raw material requirements that are lowering costs thanks to higher volume discounts.

Despite the benefits already achieved through the acquisition, Hill PHOENIX believes there are even greater opportunities on the horizon.

“Not only will the acquisition increase Hill PHOENIX’s competitive position, but the expanded service and support network footprint will allow us to provide the strategic services and support that large national and regional customers desire. By combining Tyler’s energyefficient technologies with Hill PHOENIX refrigerant-reducing Second Nature Systems, our customers will have the most sustainable product answers in the market,” explained Bill Johnson, Hill PHOENIX president and CEO.

Additionally, Johnson notes, the acquisition provides the relationships and infrastructure needed to retain Tyler’s long-standing relationships with important key customers such as Costco and Target.

As Hill PHOENIX continues its leadership role driving the industry into the twenty-first century, Johnson says it’s the Hill PHOENIX passion for excellence and innovation that is the point of differentiation that competitors can’t duplicate. “That passion keeps Hill PHOENIX at the forefront of the industry,” Johnson said. “When C.V. Hill recognized an opportunity in 1887 to provide a new level of value to his grocery customers, a commitment to excellence was born and it’s a commitment that continues today.”