Since the start of May, at least 25 deals big and small in distribution were announced on MDM’s distribution M&A news page.
We Deliver Distribution News to Your Inbox
Sign up below to receive MDM Update, your free weekly distribution news update by email.
We've also seen some large acquisitions in manufacturing that affect independent distribution channels, including Eaton’s acquisition of Cooper Industries and Stanley Black & Decker’s recent acquisition of Powers Fasteners.
What’s driving the activity? A few contributors include pent-up demand, more favorable economic conditions (leading to stronger valuations) and increased interest by owners looking to exit the business.
Both private equity and strategic acquirers continue to play a strong role in the most recent consolidation trend.
To provide insight, MDM will feature three panelists in a June 28 live webcast event, the 2012 Wholesale Distribution M&A Update. They’ll talk about key trends in North American and international M&A markets for distribution and key drivers for financial and strategic buyers. They’ll also provide some insight on the selling process – including what sellers can do to optimize valuations and how the process works.
The panelists include Charley Hale, CFO of FCX Performance, a distributor of process flow control products and related services; Jason Kliewer, a director in the distribution practices at Robert W. Baird & Co.; and David O. Hawkins, investment team leader with CHS Capital, a private equity firm that has invested in several distribution companies.