Another month of the U.S. economy muddling through the COVID-19 crisis, another period of distribution M&A showing signs of returning to normal.

September marked the second straight month of about a dozen deals in the space, and it started with a bang when MRO distributor Lawson Products Inc. announced the largest acquisition in company history, its $35.3 million addition of Partsmaster, a Greenville, Texas-based MRO solutions provider.

MDM went behind the deal in our most recent edition of MDM Premium with M&A in the Time of COVID-19: Lawson Products Executives Talk Business Growth Strategy Amid Upheaval.

In the piece, we spoke with Mike DeCata, president and CEO, and Brian Hoekstra, who joined the company as vice president, mergers and acquisitions about a year ago — and just a few months before M&A activity came to a standstill. Despite the industry-wide slowdown in deals, Hoekstra said the global pandemic didn’t change Lawson’s outlook or appetite for deals.

“COVID-19 hasn’t been fun for anybody, but it hasn’t changed the way that we are approaching M&A,” he said. “We’re still looking for businesses that make sense from a strategic perspective.”

September Deals

Will other acquirers also resume activity? Stay tuned to MDM for all the latest M&A activity and analysis on buy-side and sell-side trends. In the meantime, here is a roundup of all the deals from September, listed in reverse chronological order.

• Snap-on Acquires AutoCrib — Snap-on Inc. (NYSE: SNA), Kenosha, Wisconsin, announced that it acquired AutoCrib Inc. for $36 million. Based in Tustin, California, with 2019 sales of approximately $30 million, AutoCrib is a designer, manufacturer and marketer of tool and asset control solutions. AutoCrib will be part of Snap-on’s Commercial & Industrial Group, effective with Snap-on’s 2020 fiscal fourth quarter.
• Atlas Copco to Acquire U.S. Metrology Company — Swedish manufacturer Atlas Copco announced it has agreed to acquire Perceptron (Nasdaq: PRCP), a publicly traded supplier of automated metrology solutions, for SEK 630 million (US$68.9 million). Perceptron employs around 300 and is headquartered in Plymouth, Michigan. In the fiscal year 2020 Perceptron had revenues of SEK 569 million (US$62.3 million). The company will become part of Atlas Copco’s newly created division Machine Vision Solutions within the Industrial Technique business area.
• SRS Distribution Acquires Two Companies — Building materials distributor SRS Distribution Inc., McKinney, Texas, announced that it has acquired two companies — CB Wholesale in Washington and RSI Building Products in Louisiana. Both companies specialize in the distribution of residential & commercial roofing, drywall and other related products. Financial terms of the agreements were not disclosed.
• Foundation Building Materials Acquires Marriott Drywall Materials — Foundation Building Materials Inc. (NYSE: FBM), Santa Ana, California, announced that it has closed the acquisition of Marriott Drywall Materials Inc., an independent distributor of drywall and accessories, steel framing, insulation, tools and fasteners that has served the Greater Milwaukee, Wisconsin, area for 22 years. Financial terms of the transaction were not disclosed.
• Industrial Valco Acquires Beric Valves — Los Angeles-based MRO master distributor Industrial Valco announced the acquisition of Beric Valves, a Houston-based producer of cast and forged steel gate, globe, check and ball valves, for the United States and its territories. Financial terms of the deal weren’t disclosed.
• Brady Acquires Maryland Distributor Fitch Co. — Brady Industries, a Las Vegas-based full-line janitorial supply, equipment and foodservice distributor, announced the acquisition of Fitch Co., a Baltimore, Maryland-based distributor. Financial terms of the deal weren’t disclosed.
• Motion Industries Acquires Motion Control & Automation Company — Motion Industries Inc., Birmingham, Alabama, a distributor of maintenance, repair, and operation replacement parts and a wholly owned subsidiary of Genuine Parts Co., announced that it has acquired Park Hills, Kentucky-based motion control and automation products and services supplier Applied Machine and Motion Control Inc. (AMMC). Financial terms of the deal weren’t disclosed.
• Atlas Copco Completes MEDGAS Acquisition — Swedish manufacturer Atlas Copco announced that it completed its acquisition of MEDGAS-Technik GmbH, a German-based manufacturer, distributor, installer and service provider of medical air and medical vacuum systems, pipeline equipment and medical supplies. Financial terms of the deal weren’t disclosed.
• Ingersoll Rand Acquires Pump Manufacturer Albin Pump — Ingersoll Rand Inc. (NYSE: IR), Davidson, North Carolina, completed its acquisition of Albin Pump SAS, headquartered in Montelimar, France. Financial terms of the deal weren’t disclosed.
• AD, SafetyNetwork Finalize Merger, Creating AD Safety Network Division — Buying group AD, Wayne, Pennsylvania, on Tuesday announced it has finalized the merger agreement with Tampa, Florida-based SafetyNetwork, creating AD’s only safety-dedicated division focused on the growth of independent distributors specializing in the safety market. Financial terms of the agreement weren’t disclosed.
• American Welding & Gas Acquires Bestway Welding Supply — Investment bank Matrix Capital Markets Group announced it has sold Houston-based Medical Gas Supply LLC, d/b/a Bestway Welding Supply, to American Welding & Gas Inc., Raleigh, North Carolina, an independently owned producer and distributor of industrial, medical and specialty gases. Financial terms of the deal weren’t disclosed.
• Lawson Products Acquires Partsmaster — MRO distributor Lawson Products Inc. (Nasdaq: LAWS), Chicago, announced the acquisition of Partsmaster, a Greenville, Texas-based MRO solutions provider, for $35.3 million.