MDM Editor Lindsay Konzak said it best in her recent blog: "2009 has been a rough year for Mergers and Acquisitions in the distribution industry." From the complete disarray of the financial markets to the economy in general, opportunities for expansion were sometimes hard to come by.
But several companies were able to take advantage of the opportunities that did exist.
Here are the year's Top 8 M&A stories from MDM:
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1:
W.W.
Grainger Takes on the World
Grainger itself was the top M&A story of the year because they continued to
push
forward with acquisitions, completing at least five deals in the past year primarily in international markets. The facilities
maintenance products distributor expanded its presence in India, Japan and Canada, while continuing to build on its existing
strengths. Deals included:
2: Motion Industries' Market Moves
Motion Industries, a subsidiary
of Genuine Parts Company, refused to let opportunities pass it by as well, making strategic acquisitions to further build
out its presence in various market spaces:
3: Wolseley
Spins Off Stock Building Supply in Joint Venture Deal
The bleak housing market forced UK distributor Wolseley
to reevaluate its businesses. The losses associated with its U.S. building supplies unit were just too great. In May, the
company entered a joint venture agreement in which it will retain 49% equity stake in Stock, while private equity firm The
Gores Group will control company.
4: Stanley
Works, Black & Decker to Merge
In a move that many industry experts say was a long time coming, Stanley
Works and Black & Decker announced plans to merge to create a new tool manufacturing giant: Stanley Black & Decker.
While brands from both companies are seen in many of the same places, the minimal overlap of actual products made this a smart
move.
5: HD
Supply White Cap Acquires ORCO Construction
Expanding its presence in the Southeast U.S, HD Supply White
Cap acquired the assets of ORCO Construction Supply after the regional construction materials distributor filed for bankruptcy.
6:
McJunkin Red Man Buys Transmark
Pipe, valve and fittings distributor McJunkin Red Man solidified itself as a global distributor with the acquisition
of UK-based Transmark, a distributor of specialty valve and flow control equipment.
7: Watsco,
Carrier Corp. Go Forward with Joint Venture
Deal nearly doubled Watsco's sales through creation of Carrier Enterprises
LLC.
8: Arrow Electronics
Acquires A.E. Petsche Company
Having already established its presence in the commercial and industrial markets,
Arrow's acquisition of A.E. Petsche increased the electrical components distributor's presence in the aerospace and defense
markets.
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