Mixed signals have played out across construction recently – with spending up and employment down – but consolidation has remained steady among distributors who service the industry, a trend that carried over into September.
Building materials, HVAC and electrical all saw M&A activity last month, continuing the momentum those sectors built late last year and developed throughout 2015 with consistently high volume and a handful of deals exceeding $1 billion.
European building materials supplier Saint-Gobain signed an agreement to sell Norandex, its distribution business in the United States, to roofing and siding products distributor ABC Supply Co. Inc., Beloit, WI, No. 1 on MDM's list of the Top 10 Building Materials & Construction Distributors.
Building materials distributor US LBM Holdings LLC, Green Bay, WI, announced two acquisitions in September (bringing its 2015 total to 10). The company agreed to purchase GBS Building Supply, Greenville, SC, from its employee shareholders, and it acquired cabinet manufacturer Gold & Reiss, Brooklyn, NY, from Simon Eidlisz.
And USG Corp., Chicago, IL, agreed to sell its interestin Knauf-USG Verwaltungs GmbH and Knauf/USG Systems GmbH & Co. KG to Knauf Aquapanel GmbH for €48 million ($US54.1 million).
In the HVAC sector, MORSCO, a Fort Worth, TX-based distributor of commercial and residential plumbing, heating and cooling equipment, and pipe, valves and fittings, acquired plumbing supply distributor Murray Supply Co., Winston-Salem, NC.
Eastern Industrial Supplies Inc., Greenville, SC, a wholesale distributor of pipe, valves, fittings, plumbing and industrial specialties, agreed to acquire privately held PVF distributor M&R Pipe and Supply Inc., Birmingham, AL.
And Atlas Copco, Stockholm, Sweden, acquired Air Repair Sales and Services Ltd., Moncton, NB, a distributor of compressors and accessories.
In the electrical sector, Irby Co., a Jackson, MS-based subsidiary of Sonepar USA, acquired Electrical Test Labs of Georgia Inc., Lake Park, GA.
Here are other key deals that occurred in September 2015: