Based on the declining number of deals during the last two months, pandemic fatigue has perhaps taken hold of anyone pursuing M&A.
April was another slow month for activity, yet the market remains attractive for both buyers and sellers, according to the analysts that MDM has polled during the first few months of 2021.
A few deals did reach the finish line last month, of course. And some companies on MDM’s Top 150 Distributors list were acquisitive, including Hisco, F.W. Webb, NOW Inc., Watsco and Winsupply.
Speaking of Winsupply, MDM checked in last month with Monte Salsman, president of Winsupply Acquisitions Group, about his unique approach to deal-making during COVID-19. He said he wasn’t going to let the pandemic put a damper on seeing prospective targets and meeting them in person — he just wanted to do it safely.
“I consider the face-to-face to be a key part of acquisitions,” Salsman told MDM. “I love it and sellers do too. I think that while sellers, of course, want a fair price, they want to leave their business in the hands of somebody they trust.”
The efforts have paid off for Salsman and the Dayton, Ohio-based distributor. In early April, Winsupply announced it has acquired Allegheny Pipe & Supply, a Coraopolis, Pennsylvania-based distributor of industrial pipe, valves and fittings. It was the first deal that Salsman completed during his travels. He said more announcements could be coming soon.
There were many more notable transactions, of course, and in case you missed anything, here are all the M&A announcements — primarily involving distributors but also manufacturers that sell through the channel — MDM covered during the previous month (click the hyperlinked headline for more details):
- Hisco Acquires Shurmed Health — Acquisition of specialty adhesive solutions manufacturer expands Hisco’s national converting and fabrication capabilities.
- Electric Supply Partners with PE Firm Supply Chain Equity Partners — SCEP’s investment in the Florida-based electrical distributor marks its 44th distribution investment since 2007.
- United Rentals Acquires Franklin Equipment — Newest addition to United Rentals’ portfolio serves general contractors in Ohio, Indiana, Wisconsin, Kentucky, Tennessee, Alabama, Georgia and South Carolina.
- American Construction Source Acquires Minnesota Distributor — ACS pulls trigger on ninth acquisition under current sponsorship with the addition of Foley Lumber and Milaca Building Center.
- Watsco Completes Acquisition of Chicago Distributor — Watsco announced in March that it was spending $291 million to add Temperature Equipment Corp. to its portfolio.
- Atlas Copco Acquires Spanish Vacuum Distributor — Newest addition to Atlas Copco’s portfolio is the Edwards vacuum distributor in Spain and Portugal.
- NOW Inc. Completes Flex Flow Acquisition — Deal bolsters NOW Inc.’s “existing product offering with the addition of [Flex Flow’s] rental product solution.”
- Winsupply Acquires Allegheny Pipe & Supply — Newest addition to Winsupply is a distributor that serves contractors in the Pittsburgh, Pennsylvania, region.
- SiteOne Landscape Supply Acquires Two Companies — Landscape distributor adds pair of Arizona businesses — Arizona Stone & Architectural Products Inc. and Solstice Stone Inc. — to its portfolio.
- W. Webb Subsidiary Alliance Environmental Group Makes Acquisition — Alliance Environmental Group adds Clean Air Duct & Vent Cleaning — an HVAC duct cleaning service — to its portfolio.
Did we miss anything? Please send M&A announcements to email@example.com. We also welcome suggestions for “Behind the Deal,” our occasional series that takes a deep dive into market-shifting moves in wholesale distribution.