Maybe industrial distributors aren’t threatened by forecasts of a possible economic slowdown in 2023. Maybe we at MDM are just getting better about finding and reporting on mergers and acquisitions. Maybe companies have resolved — in the spirit of the new year — to finally close those deals that have been floating on their radars since before the COVID-19 pandemic. Whatever the reason, January was a banner month for M&A activity among industrial distributors and manufacturers.
During the month, MDM reported 48 mergers and acquisitions, the highest in recent memory since we reported 34 during December 2020. One thing that boosted the M&A count for the month: Several companies announced multiple acquisitions at a time, apparently wasting no time in the new year to complete those aforementioned acquisitions. Before 2023 was barely a week old, Beacon announced deals with Whitney Building Products and First Coastal Exteriors. Air Conditioning Specialist, Inc. announced acquisitions in North Carolina and Tennessee, while generators distributor GenServe acquired both Illini Power Products and Gen-Power. M&A regular Envoy Solutions also reported acquiring Delta Packaging & Supply and Royal Paper. For its part, MSC Industrial Supply reported a pair of acquisitions in Ohio: Buckeye Industrial Supply and Tru-Edge Grinding. Not to be outdone, Rexel and Rexel USA announced a combined three acquisitions during the month.
(Read more about all the January deals below, and click here to listen to MDM CEO Tom Gale and Day1 Ready Founder Jennifer Fondrevay talk about why communication is critical to M&A success.)
These are the M&A announcements — primarily involving distributors, but also manufacturers that sell through the channel — that MDM covered during January 2023 (click the headline for more details):
- AFC Industries Acquires Motor City Industrial — Bertram Capital-backed AFC Industries announced Jan. 16 that it has acquired fellow Hazel Park, Michigan-based Motor City Industrial — a like distributor of fastener products and class-C components.
- AIM MRO Acquires Surface Coatings Supplier Tribologix — AIM MRO Holdings, a manufacturer and supply chain manager of highly engineered consumable repair products and materials used primarily in the aerospace aftermarket, announced Jan. 17 that it has acquired Tribologix, a provider of engineered surface coatings solutions.
- Badger Meter Acquires Syrinix in U.K. — Milwaukee, Wisconsin-based Badger Meter, Inc. — a manufacturer of flow measurement, control and communications solutions — announced Jan. 5 the acquisition of Syrinix, Ltd., a privately held provider of intelligent water monitoring solutions, for £15 million (approximately $18.25 million USD).
- Beacon Starts New Year with Two Acquisitions — Virginia-based roofing and building products distributor Beacon has kicked off the new year by announcing two acquisitions less than a day apart.
- Belt Power Acquires Dunham Rubber & Belting in Indiana — Marietta, Georgia-based Belt Power, LLC — a full-service distributor and fabricator of belting and components for lightweight conveyor systems — announced Jan. 3 that it has completed its acquisition of Dunham Rubber & Belting Corporation.
- BradyIFS Acquires Chicago-Based YPV Distribution — On Jan. 12, the Bell, California-based distributor of foodservice disposables and JanSan products said that it has acquired Elk Grove Village, Illinois-based YPV Distribution — a like distributor of foodservice and JanSan products serving the greater Chicagoland region since 2007.
- Crosby Group, Kito Corp. Complete Lifting & Rigging Merger — On Jan. 30 — more than 250 days after a merger agreement was first announced — Texas-based lifting and rigging company The Crosby Group said it has finally combined its business with the Kito Corporation, a Japan-based material handling manufacturer of hoists and cranes.
- Distributor Air Conditioning Specialist Expands in NC, TN — Air Conditioning Specialist, Inc., a Hidden Harbor Capital Partners portfolio company that provides HVAC and plumbing installation and services, announced Jan. 18 that is has acquired companies in North Carolina and Tennessee.
- Envoy Solutions Acquires Delta Packaging & Supply in MS — Illinois-based JanSan, foodservice and packaging supplies distributor Envoy Solutions announced Jan. 6 that it has acquired Flowood, Mississippi-based Delta Packaging & Supply.
- Envoy Solutions Acquires Royal Paper in SoCal — On Jan. 23, the company announced it had acquired Santa Fe Springs, California-based Royal Paper Corp., a national distributor of paper, plastics, cleaning and safety consumables, as well as equipment in janitorial, sanitary and foodservice applications.
- ERIKS Acquires Canada-Based Fluid Power Supplier DeeTag — Fluid and material conveyance solutions distributor ERIKS North America announced Jan. 11 its acquisition of DeeTag Ltd., a manufacturer and distributor of hydraulic and industrial hose assemblies.
MDM’s M&A Virtual Summit, to be held Feb. 21-22, has something to offer for any distributor on the dealmaking spectrum. We’ll cover the current state of M&A; how to maximize valuation; integration do’s and don’ts; ESOPs; the culture side of the M&A process; and more. Get details and register here.
- Field Fastener Merges with Ohio-Based Mid-State Bolt & Nut — Machesney Park, Illinois-based Field Fastener announced Jan. 27 that it has merged with Mid-State Bolt & Nut Company, a fellow fastener distributor based in Columbus, Ohio.
- FleetPride Acquires Florida-Based TML Truck & Trailer Repair — The Texas-based truck and trailer parts distributor announced its first acquisition of 2023, TML Truck & Trailer Repair, on Jan. 24.
- Flow Control Holdings Acquires Distributor Andron Stainless — Cincinnati-based flow control components distributor Flow Control Holdings (FCH) announced Jan. 18 its acquisition of fittings and valves manufacturer and distributor Andron Stainless.
- FMH Material Handling Solutions Acquired by Holding Company — Ohio-based holding company GNCO, Inc. announced Dec. 29 its acquisition of FMH Material Handling Solutions, a distributor of material handling products.
- Galco Acquires Ohio Automation Distributor Zesco — Madison Heights, Michigan-based Galco Industrial Electronics, Inc. has acquired Zesco, Inc., a regional automation solutions provider located in Brecksville, Ohio.
- Generators Distributor GenServe Acquires Illini Power Products, Gen-Power — GenNx360 Capital Partners announced Jan. 4 that GenServe, a portfolio company of GenNx360, has acquired Illini Power Products and Gen-Power.
- GME Supply Acquires Farwest Line Specialties in CA — GME Supply — an outfitter of fall protection, safety equipment and gear for at-height workers — on Jan. 17 announced its acquisition of Atascadero, California-based Farwest Line Specialties LLC.
- GMS Expands into NYC Market with Acquisition, Greenfield Facility — Georgia-based building products distributor GMS Inc. announced Jan. 3 the first entries of its expansion into the New York City market.
- Holland Pump Acquires BPR Pumping & Vacuum in Texas — West Palm Beach, Florida-based Holland Pump Company — an independent specialty pump rental and dewatering solutions provider, announced Jan. 16 that it has completed the acquisition of BPR Pumping & Vacuum Solutions in Pearland, Texas.
- Hy-Tek Intralogistics Acquires Winchester Industrial Controls — Columbus, Ohio-based Hy-Tek Holdings, a portfolio company of Dunes Point Capital, LP, said Jan. 5 it has acquired Winchester Industrial Controls LLC.
- Ingersoll Rand Completes Acquisition of SPX Flow’s Air Treatment Business — Global pumps and compressors manufacturer Ingersoll Rand announced Jan. 3 it has completed its acquisition of SPX Flow’s Air Treatment business in an all-cash transaction for approximately $525 million.
- Johnson Controls Acquires Norwegian Heat Pumps Maker — Global building products manufacturer Johnson Controls announced Jan. 13 its acquisition of Hybrid Energy AS, a manufacturer of heat pumps based in Lysaker, Norway.
- Logistics Software Provider Descartes Acquires Supply Vision — Canadian logistics software provider Descartes Systems Group announced Jan. 6 its acquisition of Supply Vision, a supplier of shipment management solutions to North American Logistics Service Providers (LSPs).
- Masonite Acquires Fellow Door Components Supplier Endura Products — Tampa, Florida-based door manufacturer and distributor Masonite International Corporation announced Jan. 3 its acquisition of Endura Products, a manufacturer and distributor of door components based in Colfax, North Carolina.
- Mill Steel Co. Acquires Cleveland Metal Exchange — On Jan. 18, Grand Rapids, Michigan-based flat-rolled carbon steel distributor Mill Steel Co. announced its of acquisition of Cleveland Metal Exchange and Chicago Stainless Metal Exchange.
- Morse Acquires U.K. Distributor and Welding Center PJ Wiseman — Ohio-based cutting tools manufacturer M.K. Morse Company announced Jan. 3 its acquisition of PJ Wiseman Ltd., a welding supplies distributor and welding center in North Yorkshire, United Kingdom.
- MSC Acquires Ohio’s Buckeye Industrial Supply and Tru-Edge Grinding — Six days after reporting its 2023 first quarter final results, metalworking and MRO supplies distributor MSC Industrial Supply reported a pair of acquisitions in Ohio.
- Offen Petroleum Acquires Chicago-Based Gas Depot — Commerce City, Colorado-based Offen Petroleum announced Jan. 4 that it has completed its acquisition of the wholesale division of Chicago-based Gas Depot, Inc. and Gas Depot Oil Company.
- Progressive Plumbing Supply Acquires Distributor Delwood Supply — Independent business advisory firm The Beringer Group on Jan. 6 announced that its client Delwood Supply Inc. finalized the sale of the company to Progressive Plumbing Supply Company, Inc.
- Purvis Industries Acquires ErieTec in PA — On Jan. 3, Purvis Industries announced it has acquired “substantially all the assets, brand rights, websites, personnel and intellectual property” of ErieTec, an industrial distributor based in Erie, Pennsylvania.
- Rexel USA Acquires Buckles-Smith Electric — Electrical distributor Rexel USA on Jan. 6 said it has completed its acquisition of the Buckles-Smith Electric Company, headquartered in Santa Clara, California.
- Rexel Makes 2 Additions in North America, Divestment in Norway — France-based electrical distributor Rexel announced three transactions on Jan. 30: its acquisition of Buckles-Smith Electric Company, its acquisition of Lineman’s Testing Laboratories and the divestment of Rexel’s activities in Norway.
See MDM’s Investment Bank Directory for a rundown of the key investment banks and advisory firms in the distribution sector.
- Sonepar Acquires HOLT Electrical Supply in St. Louis — On Jan. 4, Sonepar said its U.S. subsidiary, Springfield Electric, has agreed to acquire St. Louis-based HOLT Electrical Supply.
- Sonepar Acquires Electrical Distributor NEDCO in Las Vegas — A day after its subsidiary Springfield Electric acquired HOLT Electrical Supply in St. Louis, another of Sonepar’s subsidiaries, Utah-based Codale Electric, announced its acquisition of electrical products distributor NEDCO Supply on Jan. 4.
- Specialty Building Products to Acquire Midwest-Based Amerhart — Duluth, Georgia-based building materials distributor Specialty Building Products (SBP) announced Jan. 10 its acquisition of Amerhart, a building materials distributor with operations throughout the U.S. Midwest.
- SRS Distribution Acquires Marsh Building Products — Texas-based roofing and building supplies distributor SRS Distribution announced Jan. 27 its acquisition of Marsh Building Products Inc., a distributor of residential and commercial building products.
- SureWerx Sold to Partners Group by Riverside Company — Chicago- and Vancouver-based safety products manufacturer SureWerx has been sold to global private markets firm Partners Group by The Riverside Company, according to a Jan. 4 announcement.
- Timken Acquires Linear Motion Supplier Nadella — Ohio-based bearings manufacturer Timken announced Jan. 30 it has reached an agreement to acquire Nadella Group — a manufacturer of motion technology headquartered in Milano, Italy — from ICG plc.
- Triad Technologies Acquires Illinois-Based Hose Distributor — Ohio-based industrial distributor Triad Technologies LLC announced Jan. 10 its acquisition of Industrial Service Products LLC (ISP), a distributor of custom fabricated hose, valves, fittings and other related products.
- US LBM to Sell 3 Divisions to ABC Supply Subsidiary — On Jan. 23, Buffalo Grove, Illinois-based building materials distributor US LBM announced that it will sell three of the company’s operating divisions to a subsidiary of building products distributor ABC Supply Co.
- Wynnchurch Capital Acquires Majority of FloWorks International — Illinois-based Wynnchurch Capital announced Jan. 24 its acquisition of a majority ownership in FloWorks International from fellow private equity firm Clearlake Capital Group.