2016 Family Business Awards: Business of the Year, Large Firms

Gold: R.D. Merrill Company; Silver: Peninsula Truck Lines
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GOLD AWARD
R.D. Merrill Company
Location: Seattle

in the 1890s, Richard Dwight Merrill built a business based on timber. Six generations later, the company he built, R.D. Merrill, has 1,700 employees and operations in timber, retirement homes and property development. Merrill’s great-great-grandson (and the company’s current chairman), Charlie Wright, took the first step toward diversification in 1993 when he built Merrill Gardens into a national operator of retirement homes. The company’s senior housing and multifamily operations totaled 5,643 housing units in 2016, up from 4,345 last year. Merrill is adding new sites in vibrant, walkable urban areas close to amenities in areas such as downtown Ballard. Fifth-generation family member Cole Wright is leading a Shanghai-based effort to build senior communities in China. Another major thrust for the company has been real estate development. In 2011, the company launched Pillar Properties, a business that had $30 million in revenues last year. The business owns seven luxury multifamily properties in the Puget Sound region, including Stadium Place, a 500-unit, two-tower complex that has contributed to the revival of Pioneer Square. Each of the four major family group descendants is represented on the company’s board, and at least 52 family members attend annual meetings, at which management briefs them on business performance and strategy as well as potential career paths. 

 

SILVER AWARD
Peninsula Truck Lines
Location: Federal Way

Peninsula Truck Lines was founded in 1951 and began expanding geographically in the 1980s. It now has 250 employees and operates in Washington, Oregon and Idaho. After 38 years as president, Stan Vander Pol has stepped up to become board chairman, and nephew Brent Vander Pol, 30 years at the company, has stepped in as the new president. A majority of family shareholders work in the company and are expected to meet high performance standards. Peninsula’s revenues this year will be up 21 percent from three years ago.

2016 Family Business Awards: Heritage/Legacy Award

2016 Family Business Awards: Heritage/Legacy Award

Winner: Bartell Drugs
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WINNER
Bartell Drugs
Location: Seattle

Sometimes, the best course for a family business managing succession is to reach outside the family for expertise while it prepares for the next generation to assume leadership. This happened to Bartell Drugs in 2015. With third-generation family leaders George Bartell and Jean Bartell Barber retiring and the five fourth-generation Bartells mostly still in college and not yet ready to take on leadership positions, the 126-year-old company hired longtime REI executive Brian Unmacht as CEO. 

Now those five young adults are actively involved through quarterly family council meetings to learn about stewardship of a family business. 

Eldest cousin Evelyn Merrill, 29, works as Bartell’s senior marketing manager. She’s the daughter of Jean Bartell Barber and niece of former CEO George D. Bartell. Although her cousins are coming of age and each has their own career passions, Merrill says one thing all family members agree on is that the company should remain in family hands. Merrill says the family all feel a commitment to their shared family history going back to 1890, when young pharmacist George H. Bartell Sr. bought a storefront in Seattle’s Central District. 

As a teenager, Merrill first got a sense of the Bartell legacy as a cashier clerk, a job all cousins have held. She spent a year working in various departments, from marketing to human resources, and that’s when she felt a calling. “I saw a commitment from employees to our family that was really inspiring,” says Merrill, who earned an MBA and worked for a Seattle-area ad agency before joining Bartell in August 2015. She focuses on digital marketing. One of her first projects helped improve the online interface for the company’s 10 walk-in medical clinics. 

Merrill credits Unmacht with taking the company farther and providing a key component to family succession planning. “I see us as a business moving faster, in part thinking more strategically,” she says. “But it’s more about setting our business up for success.”

Bartell has 2,000 employees and 65 stores in greater Seattle. It plans to add new stores in fast-growing urban areas like Ballard and the International District.  

Unmacht says the willingness of the family council to bring in an outsider shows its commitment to maintaining the vitality of the business. “My primary goal is to run a $600 million company in a very competitive space,” says Unmacht. [And] I’m very conscious of where I can help the next generation learn the business.”

That dedication, Unmacht notes, remains crucial to Bartell’s ability to maintain family ownership far into the future.