Wave of Consolidation Hits the Industry - Modern Distribution Management

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Wave of Consolidation Hits the Industry

This article is part of the 2012 Distribution Trends Report. To access this annual update for premium subscribers, subscribe now or log-in.

Each year we say the big get bigger. And while that remains the case, we saw the big get much bigger thanks to a wave of mergers and acquisitions in 2011. That’s reflected on the 2012 MDM Market Leaders top distributor lists – which are at mdm.com/marketleaders.

The average growth for distributors on this year’s Top 40 Industrial Distributors list was 19.4 percent, a significant jump from the 10.4 percent we saw on last year’s list, in part due to acquisitions made throughout the year. Consolidation further ramped up in the first half of 2012.

Dozens of deals have been announced in distribution thanks to a perfect storm of contributing factors that include a large number of owners who are ready to retire, significantly improved deal valuations and ...

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