Industrial and contractor supplies buying group AD is set to expand again with its latest merger, this time in the form of The Commonwealth Group.

With offices in Dallas and Chicago, The Commonwealth Group is a fellow member-owned buying group, catering to product verticals of plumbing, PVF, HVAC, waterworks and irrigation. The firm’s website states that its purchasing force spans 103 distributors comprised of 1,350 branches across the U.S., with a combined sales volume exceeding $9 billion. Its network represents over 135 manufacturers.

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Framed as a merger of equals, the combination will result in a buying group with 325 independently-owned PHCP distributors within AD’s network of 1,000-plus independent companies that span nine construction and industrial verticals and 14 divisions within the U.S., Canada and Mexico.

In conjunction with the merger, AD’s U.S. plumbing and HVAC divisional boards of directors and vendor committees will be restructured to enable equal representation of AD-TCG membership. AD’s PVF and Decorative Brands divisions will likewise be restructured, as well as TCG’s Waterworks unit.

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In a Sept. 2 news release, AD and TCG said the deal follows many months of confidential discussions and extensive due diligence, and that the boards of both groups voted unanimously in favor. Terms were not disclosed for the transaction, which is subject to TCG shareholder approval and expected to close by the end of 2025.

TCG President Mike Lepley has been selected to lead the overall AD PHCP unit going forward, reporting to AD CEO Bill Weisberg. He succeeds Jeffrey Beall, who is will serve as a senior advisor before departing AD next spring after serving at his position for 14 years.

“The opportunities this union will provide are infinite,” Lepley said. “Getting to know the AD organization through this process has been a great experience. The opportunity to combine the very best of each group to collectively make our strong independents and supplier partners even stronger now and into the future is extremely exciting.”

The combination comes just over a year after AD completed its previous landmark merger with IMARK Electrical in a move that significantly expanded the group’s electrical supplies network and buying power. It is AD’s 17th merger with a fellow member-owned group in its 45-year history and and AD’s sixth within the PHCP market.

“Both organizations have a rich history of supporting leading independents in this industry. Coming together represents a powerful opportunity for us to further strengthen a channel that suppliers, manufacturer representatives and customers highly value,” said Paul Kennedy, CEO of DSG and speaking on behalf of AD’s board of directors.

“We believe this merger will significantly strengthen AD and TCG’s PHCP members and partners in the United States,” added Colin Perry, TCG’s Board Chairman and President of Cregger Company’s Rampart division. “It will bring together the best in both organizations’ programs and services, provide a valuable and effective hedge against consolidation and eliminate significant redundancies for our supplier partners currently working with two separate groups.”