Industrial and contractor supplies buying group AD announced July 8 that it has reached an agreement to acquire supplyFORCE — a buying group that helps independent distributors secure and jointly service large MRO and government contracts.

Wayne, PA-based AD said its board and supplyFORCE’s board have signed an exclusive letter of intent for the transaction, which is subject to approval from supplyFORCE shareholders and AD’s board of directors. AD said both boards are working through due diligence, and the deal is expected to close during 3Q26.

Terms were not disclosed.

AD Chairman and CEO Bill Weisberg said the acquisition would add a national accounts-focused service capability to the buying group’s portfolio.

“AD exists to provide strong independents with a vehicle to collaborate efficiently on discreet matters where collaboration with fellow independents is necessary and beneficial,” Weisberg said in AD’s announcement. “Over the years, AD has expanded well beyond typical buying group functions to offer a broad and optional menu of innovative programs and services. A program to enable the efficient collaboration of independents with national accounts is a natural addition to that portfolio.”

supplyFORCE Chairman John Harman, who is also President of The Kendall Group, said the deal would better position independents to compete for large, multi-site customer opportunities.

“Independents will require increasingly more complex and technically advanced solutions that allow Independents to compete in a seamless and cost-effective manner servicing large, multi-site customer opportunities,” Harman said. “AD is well positioned to make the necessary investments to enable its membership to compete more effectively across the network.”

The pending supplyFORCE acquisition would continue a period of sizable expansion for AD, which completed a landmark merger with IMARK Electrical in 2024. That deal drove much of AD’s full-year 2025 growth, when the group reported record annual member sales of $100 billion across 13 divisions and three countries — up approximately 20% from 2024. Pre-merger, AD’s annual member sales were around $75 billion.

AD followed that in 2025 by merging with The Commonwealth Group — a fellow member-owned buying group focused on plumbing, PVF, HVAC, waterworks and irrigation. That combination brought 100-plus independent distributor member-owners into AD and resulted in a buying group with 325 independently owned PHCP distributors within AD’s network.

The Commonwealth Group addition was also the primary driver of AD’s 1Q26 member expansion, when AD added 74 members on a net basis. AD reported that its 1Q26 member sales increased 16% year-over-year to nearly $28 billion across 14 divisions and three countries, while same-store sales grew 10% and member purchases from AD suppliers increased 28%.

The supplyFORCE deal also comes four months after AD sold its AD Member Supply business unit to ORS Nasco — an MRO products master wholesaler and 2026 MDM Top Industrial Distributor. That March transaction included AD Member Supply and Alliance Distribution Partners, with ORS Nasco saying the deal expanded its support for independent distributors through enhanced product access, fulfillment and supply chain capabilities.

AD’s supplyFORCE announcement came three months after AD rebranded its U.S. Industrial & Safety division as its Industrial, Safety and Construction division.