November brought numerous M&A transactions to the distribution space, including some high-profile deals, but none were bigger than McNaughton-McKay's agreement to acquire The Reynolds Co., which will shake up next year's ranking of market leaders in electrical distribution.
Though terms were not disclosed, the deal unites two of the largest companies on MDM's 2017 list of the Top 25 Electrical Distributors. Madison Heights, MI-based McNaughton-McKay was No. 13 on last year's list, with annual sales of $725 million, while Fort Worth, TX-based Reynolds was No. 15 with annual sales of $534 million.
The organization's annual revenue should exceed $1.2 billion, placing it in the top 10 of electrical distributors. It will operate as two separate companies owned by McNaughton-McKay, with more than 1,300 employees serving customers from 41 locations in the Midwest, Southeast and South Central areas of the U.S. Each company will retain its leadership structure and existing name.
Financial buyers also made news last month, with private equity firm Clayton, Dubilier & Rice acquiring a majority stake in SunSource Holdings Inc., Addison, IL, a fluid power and motion control distributor in the U.S. and Canada.
This is the second distribution target for the private equity firm in the last few months. CD&R acquired HD Supply’s Waterworks business unit for $2.5 billion in August; soon after it renamed the company Core & Main.
SunSource does not report revenues, but MDM ranks the company 25th on our Top 40 Industrial Distributors list, with estimated revenues in the $500 million range.
Here are other key deals that occurred in November 2017: