FAIRMONT — With so many businesses struggling in the current unstable economic situation, the purchase of four Culligan Water franchises plus a bottling plant sends a powerful message of positivity.

Rich Johnson and Dave Cone of Fairmont recently merged their lifelong friendship into Healthy Water Solutions LLC and purchased Culligan franchises in Mankato, Madelia and Redwood Falls. The acquisition included a certified bottled water plant in Madelia that produces between 15,000 and 25,000 5-gallon jugs of drinking water each month.

In a separate transaction, Johnson, a third-generation Culligan operator in Fairmont, purchased the Culligan franchise in Jackson, a business originally started by his grandfather. He plans to maintain the office and routes in Jackson, with sales operating from the Fairmont location.

Johnson and Cone share a strong bond from the past and an optimistic outlook for the future. Each has a high regard for what the other brings to the partnership.

“It’s a blast to be working with a good friend like Dave,” Johnson said. “Dave and I each have our separate strengths that we bring to the table. We are each learning from each other and look forward to what the future holds.

“He’s a very smart man. We respect each other’s decisions. We’re a great combo. I know Culligan, and he has the business smarts.”

Johnson has owned the Fairmont Culligan business since 1997. His grandfather, Glen E. Johnson, started the dealership in Fairmont 71 years ago in 1948, eventually selling it to his son and Johnson’s father, Richard B. Johnson, until the third generation “Culligan man” took over 23 years ago.

While Johnson brings the Culligan legacy to the partnership, Cone brings a strong business acumen. He has a master’s degree in business administration and decades of business management experience, including running a team of product managers, engineers and salespeople in Troy, Ohio, remotely from Fairmont. He currently serves as CEO of Kahler Automation in Fairmont, and his immediate plans are to remain at that post.

“I love my Kahler Automation family, not only the ownership team but the entire employee base,” Cone said. “The Kahler family is a part of my extended family. They have been gracious with me throughout my six years with them and supportive of this lifelong goal of business ownership as well. We collectively will work on a long-term plan as to how our working relationship may look over time. Having managed staff and professional teams remotely in the past, I find I am able to be very productive remotely during this challenging time.”

Cone noted Johnson’s extensive business ownership experience as well as 23 years of Culligan knowledge as leverage that helped reduce the stress of making an acquisition during these uncertain times.

Johnson had been inquiring for the past 20 years about purchasing the dealerships, which were established in 1939, from Mike Sophy of Mesa, Ariz.

“As great friends do, Rich and I had talked about a business partnership many times over the years,” Cone said. “We began reviewing this opportunity in April of 2019 and made an offer. However, it went quiet for 10 months. Then all of a sudden, it was back on, and we went aggressively after it.”

“Usually, a guy goes out and buys his neighboring dealer, but his neighboring dealer doesn’t usually own four dealerships and a bottling plant. That’s a big deal,” Johnson said.

The two credit Andy Noll and Chris Pierce and the financial team at First Farmers and Merchants Bank of Fairmont for their advice and assistance during the process.

The deal quadruples the size of the Fairmont franchise. Prior to the purchase, Johnson had six employees, but the acquisition expanded the number to 26 employees and 26 trucks.

More expansion is on the horizon.

“We have goals of growth,” Cone said. “Mankato is a wonderful marketplace with significant growth potential. Growth is absolutely front and center in Mankato and in all of our locations. We have a great employee base, product and brand supporting our efforts.”

“We bottle our own water now,” Johnson said. “We have our own semi. We bottle and ship it to all these places. It’s actually a whole other business model that we are working to understand.”

With the COVID-19 pandemic disrupting everyone’s life with uncertainty, Johnson and Cone are solid in their friendship and their business venture.

“The timing is very good,” Johnson said. “Ten years ago, we probably wouldn’t have been ready, and 10 years from now likely would have been too late. It’s perfect timing for us, and we’re having fun with it.”