The first five months of 2023 have been a bit of a rollercoaster for mergers and acquisitions involving industrial distributors and manufacturers. Following a stellar 50 deals reported in January, the pace dropped to 29 in February and to just 22 in March. (Read more in the 1Q M&A Report from Houlihan Lokey and MDM.) We at MDM wondered if a drop in deals would coincide with a predicted economic and operational slowdown.

But as we’ve waited to see how the economy is affected on a macro level, the pace of M&A activity picked up as 2023’s second quarter started: MDM reported 40 deals during the month of April.

Distributors and manufacturers nearly hit that mark again in May. MDM reported news on 37 deals during this past month, including multiple deals for AFC Industries, DXP Enterprises and Imperial Dade. It will be interesting to see whether M&A momentum will continue into June and the year’s 2Q wraps up.

May M&A:

These are the M&A announcements — primarily involving distributors, but also manufacturers that sell through the channel — that MDM covered during May 2023 (click the headline for more details):

• AD to Merge with Groundwater Distribution Buying Group Baron — On May 31, Affiliated Distributors (AD) announced that it will merge with The Baron Group, a buying group serving independent groundwater systems distributors.
• AFC Industries Acquires Rubber Sealing Distributor EAP Int’l — On May 2, Fairfield, Ohio-based industrial distributor AFC Industries announced it has acquired EAP International Limited, a distributor of rubber sealing products, including O-rings, gaskets and associated technical products, based in Greater Manchester, U.K.
• AFC Industries Strikes Again, Acquires New Jersey’s Fastbolt — AFC Industries is staying hot on the M&A front. On May 8, the Fairfield, Ohio-based industrial distributor announced its second acquisition in less than a week.
• American Metals Supply Acquired by MacArthur Company — On May 10, Minnesota-based building supply distributor MacArthur Company acquired wholesale HVAC distributor American Metals Supply.
• Belgium’s Aliaxis to Buy Valencia Pipe’s Manufacturing Unit — On May 23, Aliaxis SA — a Belgium-based a provider of innovative fluid management solutions — announced that it has signed an agreement to acquire the manufacturing division of the U.S.-based Valencia Pipe Company for $250 million.
• BradyIFS Expands into Florida, Acquires Southern Janitor Supply — Foodservice disposables and JanSan products distributor BradyIFS has acquired Southern Janitor Supply, the company announced May 1.
• California-Based Advantage Metal Products Privately Acquired — Lexington, Kentucky-based private equity firm MiddleGround Capital has acquired Advantage Metal Products (AMP), the company announced April 25.
• CBT Company Acquires Crush Bearings and Drives in Kentucky — Cincinnati-based industrial distributor CBT Company has acquired Crush Bearings and Drives, the company announced May 11.
• Core & Main to Acquire Foster Supply — On May 22, St. Louis-based waterworks and industrial supplies distributor Core & Main announced it has entered into a definitive agreement to acquire substantially all of the assets of Foster Supply Inc. and R.P. Foster Inc. — collectively Foster Supply — a full-service provider of precast concrete structures, pipe, drainage materials and related geosynthetics products.
• Daikin Applied Acquires Carroll Air Systems — On May 1, Minneapolis-based HVAC solutions company Daikin Applied announced that it has acquired Carroll Air Systems, a Tampa-based company that provides HVAC systems and services for commercial, industrial and institutional facilities.
• DXP Acquires 2 Companies Serving Florida, Mid-Atlantic — On May 4, Houston-based pumping solutions and MROP supplies distributor DXP Enterprises, Inc. announced that is has completed the acquisitions of Riordan Materials Corporation and Florida Valve & Equipment Corp. and Environmental MD.
• FL Pumping Solutions Acquires American Sock & Dewatering — Port Orange, Florida-based Thompson Pump announced that its distributor Florida Pumping Solutions (FPS) has acquired American Sock & Dewatering.
• FleetPride Acquires Frame Service Inc. in Indiana — Irving, Texas-based truck and trailer parts distributor FleetPride has acquired Frame Service Inc., the company announced May 2.
• Fluid System Components Acquires Norcan Fluid Power — De Pere, Wisconsin-based Fluid System Components (FSC) has acquired Norcan Fluid Power, the company announced May 1.
• Global Industrial Acquires Indoff for $69M — Industrial and business supplies distributor Global Industrial Company announced May 22 that it has acquired Indoff Inc. for approximately $69.2 million in cash.
• GracoRoberts Acquires Pacific Coast Composites in Washington — East Arlington, Texas-based adhesives and sealants distributor GracoRoberts has acquired Pacific Coast Composites (PCC), the company announced May 18.
• Heico to Buy Aircraft Parts Supplier Wencor for $2B — On May 15, Heico Corporation — a designer, producer, servicer and distributor of products to the aviation, defense, space, medical, telecommunications and electronics industries — announced it will acquire Wencor Group from affiliates of Warburg Pincus LLC and Wencor’s management.
• Henry Schein Reports 1Q Results, 2 Acquisitions — Melville, New York-based health care products distributor Henry Schein announced two acquisitions and reported its 2023 first-quarter earnings earlier this month.
• Hillenbrand to Buy Schenck Processing Unit for $730M — Batesville, Indiana-based industrial distributor Hillenbrand Inc. has entered into a definitive agreement to acquire Schenck Process Food and Performance Materials (FPM) for approximately $730 million, the company announced May 24.
• Imperial Dade Acquires Columbus Paper Company in Georgia — On May 15, JanSan and foodservice supply distributor Imperial Dade announced its acquisition of Columbus Paper Company Inc., (COPACO) the 64th acquisition for Imperial Dade under the leadership of Chairman Robert Tillis and CEO Jason Tillis.
• Imperial Dade Acquires Green Streets USA in New Hampshire — Imperial Dade, a foodservice and janitorial supply distributor, announced May 1 that it has acquired Northeastern-based Green Streets USA.
• Performance Systems Integration Expands in Northern California — On May 16, Portland, Oregon-based Performance Systems Integration announced that is has acquired Integrated Fire Systems as an add-on to its fire and life safety platform.
• PIP Acquires Footwear Maker ISM Heinrich Krämer in Germany — Latham, New York-based PPE manufacturer Protective Industrial Products (PIP) has acquired ISM Heinrich Krämer GmbH & Co. KG, the company announced May 16.
• Pye-Barker Enters Michigan, Acquires Vanguard Fire & Security — The M&A binge continues for Pye-Barker Fire & Safety, as the Alpaharetta, Georgia-based safety products distributor announced its acquisition of Vanguard Fire & Security Systems on May 3.
• Rulmeca Acquires Conveying Supplier Douglas Manufacturing — Italy-based materials handling company Rulmeca Holding Spa announced last month that is has acquired Douglas Manufacturing Ltd, a manufacturer and distributor of components and engineered conveying solutions based in Pell City, Alabama.
• Sak Abrasives Inc. acquires Jowitt & Rodgers in Philadelphia — India-based abrasives manufacturer and distributor Sak Abrasives has acquired Jowitt & Rodgers Co., the company announced May 10.
• Sherwood Lumber Acquires Middle Atlantic Wholesale Lumber — Melville, New York-based lumber and building materials distributor Sherwood Lumber has acquired Middle Atlantic Wholesale Lumber (MAWL), the company announced May 22.
• Singer Industrial Acquires Hotsy Industrial Systems — Dallas-based Singer Industrial — formerly SBP Holdings — announced it has acquired Arizona-based Hotsy Industrial Systems, a provider off hot & cold pressure washers, air compressors, waste water treatment systems and detergents.
• SiteOne Landscaping Acquires Adams Wholesale Supply — On May 11, Georgia-based SiteOne Landscape Supply announced that it has completed its acquisition of Adams Wholesale Supply, a wholesale distributor of landscape supplies and agronomics with three locations in San Antonio, Houston and Dallas, Texas.
• Stellar Ind. & WDS Partner on Northwest Business, Facilities — On May 10, Tacoma, Washington-based MRO products distributor Stellar Industrial Supply announced it has merged the business and Salt Lake City and Spokane regional distribution centers from industrial distribution and supply chain management services provider White Distribution & Supply (WDS) into its overall platform.
• Trelleborg Wheel Systems Joins Yokohama Rubber — On May 2, The Yokohama Rubber Co., Ltd. announced that its acquisition of Trelleborg Wheel Systems has been successfully completed for a little more than $2.28 billion USD.
• US Foods to Acquire Renzi Foodservice in New York — On May 19, Rosemont, Illinois-based foodservice distributor US Foods Holding Corp. announced that it has agreed to acquire Renzi Foodservice, a broadline distributor located in Watertown, New York.
• White Cap to Acquire Tri-Boro Construction Supplies in PA — Atlanta-based building materials distributor White Cap has entered into a definitive agreement to acquire Tri-Boro Construction Supplies, the company announced May 9.

Click here to download and read MDM’s 1Q 2023 M&A Report.

Did we miss anything? Please send M&A announcements to editor@mdm.com. We also welcome suggestions for “Behind the Deal,” our occasional series that takes a deep dive into market-shifting moves in wholesale distribution that go beyond the details shared in press releases.