July 2015 M&A Roundup: Blockbuster Deals for Distribution - Modern Distribution Management

July 2015 M&A Roundup: Blockbuster Deals for Distribution

The Home Depot's acquisition of Interline Brands headlines mammoth month in M&A.
Eric-Smith-84x84

The M&A surge that many projected for 2015 finally arrived in July with a host of monumental deals, led by The Home Depot's return to distribution.

The Atlanta, GA-based retail giant is plunging into wholesale distribution for the second time – it spun off HD Supply Holding Inc. in 2007 – with the $1.6 billion purchase of Interline Brands Inc., a Jacksonville, FL-based distributor of broad-line MRO products to the facilities maintenance end market.

The Home Depot is buying Interline from private equity firms Goldman Sachs Capital Partners and P2 Capital Partners.

Its aforementioned spinoff, HD Supply, pulled off another one of July's most notable transactions when it agreed to sell its Power Solutions division to Anixter International Inc., Glenview, IL, for $825 million. The purchase bolsters Anixter's wire and cable and its utility divisions.  

Also in the electrical space, Paris-based electrical distributor Rexel acquired Belgium-based electrical distributor Electro-Industrie en Acoustiek, whose market is primarily in the industrial zone of Antwerp's port.

In divestiture news from the electrical sector, Switzerland-based power and automation company ABB agreed to sell its Huntersville, NC, cable factory to Southwire Company LLC, a Carrollton, GA-based wire and cable manufacturer. And Emerson, St. Louis, MO, plans to spin off its Network Power business to streamline its portfolio, drive growth and accelerate value creation for shareholders.

The building materials sector was again active, as it has been since late last year. Beacon Roofing Supply Inc., Herndon, VA, agreed to acquire Roofing Supply Group, Dallas, TX, from investment firm Clayton, Dubilier & Rice for $1.1 billion.

Another deal reported to be around $1 billion – though terms were not disclosed – was the owner of building materials distributor US LBM Holdings LLC, Green Bay, WI, agreeing to sell a majority of the equity interests in the company to affiliates of another private equity firm, Kelso & Co.

And Builders FirstSource completed its acquisition of ProBuild, a $1.6 billion deal that was announced in April.

In other notable M&A news last month, Grainger, Chicago, IL, agreed to acquireCromwell Group (Holdings) Ltd., Leicester, England, and its subsidiaries for £310 million (US$484 million). Cromwell is the largest independent MRO distributor in the United Kingdom, serving more than 35,000 industrial and manufacturing customers worldwide. The company's sales for the fiscal year ending Aug. 31 are projected to be £283 million (US$441.9 million), with the vast majority of revenue coming from the UK.

Here are other key deals that occurred in July 2015:

BlackHawk Industrial Acquires Jarvis Supply

NOW Inc. to Acquire Odessa Pumps and Equipment

Stellar Industrial Supply to Acquire Tucson Abrasives

WinWholesale Acquires M. Cooper Supply

Airgas Acquires Weldinghouse & Priority Energy Services

Praxair Acquires Cryospec & Garland Welding Supplies

Tech Air Acquires L&M Welding Supply

Essendant to Acquire Nestor Sales

Shale-Inland Holdings Acquires Major Sourcing

Wurth Group Acquires Northern Safety and Industrial

Univar USA Acquires Chemical Associates

Columbus McKinnon to Acquire Magnetek

Carlstar Acquires Marathon Industries

Quality Tools & Services Acquires AMC Supply

Ritz Safety Acquires Safety Source

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.