The hot start to 2019 distribution M&A in January continued in February, but marked by fewer big deals. Perhaps the most notable deal announcement was the merger of buying/marketing groups IDI and Affiliated Distributors. Effective April 1, the deal brings 107 independent industrial Canadian distributors with more than 364 locations into the AD group. This is AD’s ninth merger since the group’s founding and its fourth merger within Canada. AD Canadian members represent 20% of AD consolidated sales.
Merfish Pipe & Supply Co. (MPS) on Feb. 1 acquired United Pipe & Steel (UPS), combining under Merfish Pipe Holdings (MPH). The deal creates the largest master distributor of standard pipe products in the United States. The combined entity will include 17 distribution centers across the United States.
Two units of SBP Holdings also announced deals in February. Singer Equities, Inc. has acquired Quality Conveyor Solutions, LLC, Roanoke, VA, a provider of conveyor belt, accessories and field services, including installation and mobile maintenance, out of its six locations. Bishop Lifting Products, Houston, has completed its acquisition of Woods Logging and Industrial Supply, Longview, WA. Woods Logging specializes in spooling services, rigging products, wire rope and hydraulic solutions for logging, marine and construction industries. The acquisition helps Bishop Lifting expand to the Pacific Northwest.
As I noted last month, 2019 got off to a blazing M&A start, with a range of deal announcements across all sizes of distributors, including internationally. The biggest was Sonepar’s intent to acquire North Coast Electric. North Coast ranked 17th on MDM's 2018 Largest Electrical Distributors with 2017 revenues of $510 million. The deal will add 34 branches to the Sonepar USA network in Washington, Oregon, Idaho, Alaska and Arizona.
Here’s a recap of the deals in February as reported by MDM: