The threat of an increase in the capital gains tax, coupled with accepting the new business cycle on what everyone hopes is the tail end of COVID-19, has pulled forward acquisition deals, and last month was another healthy one for M&A volume.
MDM reported 25 transactions in August as companies of all sizes, verticals and ownership structures (i.e., private, PE-backed and public) were active.
Highlights include SRS Distribution Inc. notching its 100th acquisition since forming in 2008, and then following that deal soon after with an expansion into Hawaii. Look for more on the company’s M&A pursuits and overall business outlook on an upcoming MDM Podcast.
McNaughton-McKay also added an asset, while Core & Main was active with one new deal and one closed deal during the month. Serial acquirer US LBM Holdings announced three acquisitions in August.
There were many more notable transactions, and in case you missed anything, here are all the M&A announcements MDM covered during the previous month — primarily involving distributors but also manufacturers that sell through the channel and even a service provider (click the headline for more details):
- SKF Acquires Analytics Firm — Swedish bearings manufacturer SKF completed the acquisition of Rubico Consulting AB, an industrial consultancy firm with 10 employees based in Luleå, Sweden.
- Atlas Copco Acquires German Company — Swedish industrial manufacturer Atlas Copco announced it has acquired NATEV GmbH, Borken, Germany. NATEV specializes in position solutions for assembly tools used in industrial production. The company has 10 employees, and in 2020 it posted sales of €0.5 million (US$0.6 million).
- Envoy Solutions Acquires Daycon — Envoy Solutions — the Glenview, Illinois-based holding company that owns and operates North American, WAXIE Sanitary Supply, SWPlus and Southeastern Paper Group — announced the acquisition of Daycon Products Co., Upper Marlboro, Maryland.
- Core & Main Completes Deal to Buy L & M Bag & Supply Co. — Core & Main LP, based in St. Louis, closed its previously announced deal to acquire L & M Bag & Supply Co. Inc. The deal, first announced in June, marked Core & Main’s 14th acquisition since becoming an independent company in August 2017.
- SRS Agrees to Acquire Hawaiian Distributor — Building materials distributor SRS Distribution Inc., McKinney, Texas, announced it has agreed to acquire Aloha Roofing Supply, a Kapaa, Hawaii-based distributor of residential roofing, lumber, foundation and masonry, and other related products.
- SRS Acquires New York Distributor Weatherpanel — Building materials distributor SRS Distribution Inc., McKinney, Texas, announced it has acquired Weatherpanel Inc., a Buffalo, New York-based distributor of residential and commercial roofing, siding, windows and doors, and other related products.
- Jon-Don Acquires Dynamic Diamond Tooling — JanSan distributor Jon-Don, Roselle, Illinois, has acquired Dynamic Diamond Tooling, Orlando, Florida. Founded by Patrick Pollitt and Ron Yagur, Dynamic Diamond Tooling is a supplier of equipment, tooling, and chemicals for concrete surface prep and polishing.
- SiteOne Acquires Green Brothers Earth Works and Southern Landscape Supply — SiteOne Landscape Supply Inc., Roswell, Georgia, announced it has acquired Green Brothers Earth Works and Southern Landscape Supply. The companies are known collectively as Green Brothers.
- Valin Corporation Acquires Sun Automation — Valin Corporation, a technical solutions provider located in San Jose, California, has acquired Chandler, Arizona-based Sun Automation Inc., a solutions provider for manufacturers of industrial automation products.
- Applied Industrial Technologies Buys R.R. Floody Company — Applied Industrial Technologies, Cleveland, has acquired R.R. Floody Co., Rockford, Illinois, a provider of automation products, services, and engineered solutions focused on machine vision, mobile and collaborative robotics, motion control, material handling, and digital capabilities.
- Builders FirstSource Closes Acquisition of WTS Paradigm — Builders FirstSource Inc. (Nasdaq: BLDR), Dallas, announced it has wrapped up its $450 million deal to buy software vendor WTS Paradigm LLC. The deal was first announced on June 29.
- Coastal Construction Products Buys Sealant Engineering Construction Supply — Coastal Construction Products, Jacksonville, Florida — an independent distributor of caulking and sealants, waterproofing, concrete restoration and firestopping materials in the U.S. — has reached an agreement to buy Sealant Engineering Construction Supply of Bensenville, Illinois.
- FleetPride Buys Texas-Based National Truck Repair — FleetPride has struck a deal to buy the assets of Longview, Texas-based National Truck Repair.
- Reading Truck Group Buys Semi Service to Expand West — Reading Truck Group announced that it has bought Semi Service, Inc., a distributor and upfitter specializing in work truck and semi-truck equipment sales, installation, service and repair.
- McNaughton-McKay to Buy Caniff Electric Supply — Electrical product distributor McNaughton-McKay Electric Company, Madison Heights, Michigan, reached an agreement in principle to acquire Caniff Electric Supply. The deal is expected to close in early December.
- Core & Main Wraps Up Acquisition of Pacific Pipe — Core & Main LP, based in St. Louis, announced it has closed its previously announced deal to buy Hawaii-based Pacific Pipe Co. Inc.
- GMS’ Buying Spree Continues — GMS Inc., Tucker, Georgia, completed deals to buy DK&B Construction Specialties’ EIFS division and Architectural Coatings Distributors Inc., as well as the recent openings of five greenfield locations.
- Shorehill Makes Strategic Investment in Flexpak — Shorehill Capital LLC announced the recapitalization of Flexpak LLC, a Woods Cross, Utah-based distributor of packaging supplies.
- Atlas Copco Acquires Specialized Centrifugal Pump Company — Swedish industrial manufacturer Atlas Copco announced it has acquired CPC Pumps International Inc., Burlington, Ontario. The company specializes in the design, manufacturing and servicing of custom-engineered, mission-critical centrifugal pumps.
- Carlisle Cos. Completes Sale of Carlisle Brake & Friction — Carlisle Cos. Inc., Scottsdale, Arizona, has completed the sale of its Carlisle Brake & Friction (CBF) division to CentroMotion in a deal worth up to $375 million. The company announced the sale in May.
- TestEquity Acquires MCS Test — TestEquity, a Southlake, Texas-based distributor of electronic test, measurement, and production supplies, has acquired MCS Test, a UK-based test and measurement solutions provider.
- US LBM Acquires Three Companies — Building materials distributor US LBM, Buffalo Grove, Illinois, announced it has acquired three businesses — North Georgia Building Supply and Junior’s Building Materials in Georgia and Massey Builders Supply in Virginia.
- Cook & Boardman Snaps-Up JDS — Cook & Boardman, Winston-Salem, North Carolina, announced a deal to acquire Everett, Washington-based JDS. Cook & Boardman is a portfolio company of Littlejohn & Co., LLC. JDS represents Cook & Boardman’s 13th acquisition since being acquired by Littlejohn in 2018.
- Cardinal Health Completes Sale of Cordis Business to Hellman & Friedman — Cardinal Health, Dublin, Ohio, has completed the previously announced sale of Cardinal Health’s Cordis business to Hellman & Friedman for $1 billion.
- Ingersoll Rand Completes Acquisition of Maximus Solutions — Ingersoll Rand Inc., Davidson, North Carolina, has completed the acquisition of Maximus Solutions for C$135.4 million (US$108.3 million). The new addition to Ingersoll Rand will join its precision and science technologies segment.
Did we miss anything? Please send M&A announcements to firstname.lastname@example.org. We also welcome suggestions for “Behind the Deal,” our occasional series that takes a deep dive into market-shifting moves in wholesale distribution.