locally owned since 1854

Minnesota company buys Lower Swatara-based Phillips Office Solutions

By Dan Miller

danmiller@pressandjournal.com

717-944-4628
Posted 12/5/18

Phillips Office Solutions — a well-known corporate name in the greater Middletown area — has been acquired by Marco, a technology services provider based in St. Cloud, …

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Minnesota company buys Lower Swatara-based Phillips Office Solutions

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Phillips Office Solutions — a well-known corporate name in the greater Middletown area — has been acquired by Marco, a technology services provider based in St. Cloud, Minnesota.

Phillips started in 1940 and has grown to 140 employees and 10 offices in Pennsylvania and Maryland, including its corporate headquarters on Fulling Mill Road in Lower Swatara Township.

“We’ve known Marco and its leadership for decades and have appreciated Marco’s culture and ability to enhance its offerings, provide career paths for employees and give back in big and small ways to the local communities it serves,” said Peter Phillips, CEO and owner of Phillips Office Solutions.

Marco in a November press release described the acquisition as giving the company a foothold to expand into the East Coast.

Marco is retaining 133 of Phillip’s 140 employees. A few of the Phillips business units broke off from the company as part of the acquisition.

Marco will bring expanded information technology services to Phillips, which has been a company focused mostly on document management and copier print services.

Marco started in 1973 as a typewriter and office furniture company in St. Cloud, according to the company website.

With the Phillips acquisition, Marco has grown to 61 locations with 1,360 employees serving more than 35,000 customers.

Before acquiring Phillips, all Marco locations were in the Midwest, with offices in Minnesota, North and South Dakota, Nebraska, Iowa, Missouri, Illinois, Wisconsin and Michigan.

Marco has been growing by about 20 percent each year compounded annually for the past 10 years, according to Marco CEO Jeff Gau. About half comes from “strategic purchases and acquisitions” such as the Phillips deal.

Marco reported revenue in excess of $350 million for 2018.

Marco in its announcement said that the company will continue operating as Phillips “for a short time.” The name will be rebranded as Marco eventually; the company could not say how long it will take for this to occur.

Marco said it has made a practice of investing in the communities in serves since 1973, regularly organizing community involvement events.

Marco also encourages employees to volunteer for causes on company time.

“Marco has a long history of giving back to our communities,” Gau said. “We believe it is not enough to do well as a company. We also need to do good.”