This article looks at the impact of private equity on the industrial distribution market. The impact can be seen in other distribution sectors, as well. The author says that increased private equity ownership has fundamentally changed the corporate and strategic landscape of the distribution industry.
Worldwide M&A activity reached a record $3.8 trillion over the first nine months of 2007, according to Dealogic.
Much of the activity was directly attributed to private equity firms, which raised nearly $200 billion worldwide during the year. In particular, industrial distribution experienced unprecedented private equity investment.
Over the last two years, 21 private equity firms have made 46 platform and add-on investments in numerous sub-sectors ...