Keep on top of the latest acquisitions on MDM’s M&A news page, which lists all news articles on acquisitions in distribution and manufacturing that MDM reports at mdm.com. This monthly blog provides a digest of M&A activity from the previous month.
The big news in June was HD Supply’s IPO launch, which raised less than $1 billion. Concerns over the economy and HD Supply’s high debt load may have driven the lower-than-expected proceeds from the initial public offering. The distributor may also have been hurt by sudden volatility in equity markets, which actually caused other companies to push back their IPOs.
HD Supply, which is No. 3 on MDM’s list of the Top 40 Industrial Distributors, is now listed on the NASDAQ under the ticker symbol HDS. The distributor had $8 billion in sales in 2012.
Just as we analyzed in a 2011 report, private equity firms continue to play a huge role in distributor consolidation in 2013. Read more about the role private equity has played in distribution in Private Equity Drives Deal Demand.
HD Supply is just one of many private equity-owned companies that have taken advantage of increased stock prices. The New York Times called HD Supply’s IPO a reminder of the buyout boom; we have seen a lot of private equity firms that have invested in distributors looking for an exit over the past couple of years, now that economic conditions and business valuations have improved.
Read more about consolidation trends in distribution in the 2013 Distribution Trends Report.
Other key deals that occurred in June 2013:
Private equity firm Industrial Opportunity Partners acquired Western Tool Supply in Salem, OR, via its platform company Carlson Systems, Omaha, NE. The acquisition expands Carlson’s geographical coverage to the Pacific Northwest. Western Tool represents Carlson’s first acquisition since IOP invested in the industrial distributor in 2009.
Singer Equities expanded its portfolio with the acquisition of Stewart-Hunt, a fluid power distributor that will provide vertical integration to Singer’s business in Maine.
Eurazeo sold about 10 percent of its stake in Rexel, valued at US$653.3 million. As a result, Eurazeo’s stake in Rexel will fall from 12.7 percent to 10.9 percent.
Actuant announced plans to divest its electrical segment in June, to shift its focus to its three remaining segments and further expand into emerging markets.
AEA Investors acquired safety products distributor Aramsco.
Praxair acquired a gases distributor in Russia.
MRC Global announced it would acquire Flow Control Products in Texas, which supports the Permian Basin energy industry and had sales of $28 million in 2012.
Master distributor Production Tool Supply acquired Specialty Tool in Indiana.
Houston-based GHX Industrial, a subsidiary of The United Distribution Group, has acquired Flowline Components Inc. and Flowline OEM Group Inc.
Look for MDM's July 2013 M&A roundup in August.
Catch up with more deals in distribution and manufacturing at our M&A news page.
