The second half of 2021 has started off with a bang, as M&A activity accelerated in the wholesale distribution space and continued a recent trend of many transactions in the building materials and construction industry. construction.
Companies like US LBM Holdings continued to take over businesses, making three acquisitions during the month. L&W Supply, SRS Distribution Inc., Builders First Source Inc. and GMS Inc. have also experienced growth through acquisitions as the industry continues to consolidate.
Major distributors in other categories have also made moves, including Winsupply, Core & Main, BlackHawk Industrial and Dakota Supply Group. We’ve got the details of each transaction below, and we’ll also have more analysis on the searing M&A market in MDM Premium soon.
There were of course a lot of other notable deals, and in case you missed something, here are all the M&A announcements – mostly involving distributors but also manufacturers who sell through the channel and even a supplier of M&A. services – MDM covered in the previous month (click on title for details):
- Fischer Process Industries acquires HE Danby – Pumps, valves and process equipment distributor Fischer Process Industries (FPI), Loveland, Ohio, announced the acquisition of HE Danby Co. Inc., a distributor based in Indianapolis, Indiana.
- Wynnchurch Capital acquires Trimlite – Wynnchurch Capital acquired Trimlite, a manufacturer and distributor of residential doors and related door products based in Renton, Wash.
- L&W Supply finalizes agreement to acquire Eastern Gypsum assets from Builders FirstSource – L&W Supply Corp., Chicago, completed the purchase of the assets of the gypsum distribution operations in the eastern United States from Builders FirstSource Inc. MDM first announced the deal on July 7.
- RBC Bearings to Acquire Dodge Mechanical Power Transmission Business from ABB – RBC Bearings Inc., Oxford, Connecticut, has agreed to acquire the Dodge mechanical power transmission division of Asea Brown Boveri Ltd. (ABB) for $ 2.9 billion.
- PE-backed JGB companies expand to Canada – JGB Enterprises Inc. – a Liverpool, NY-based distributor of hydraulic hoses and fluids backed by private equity firm HCI Equity Partners – made its first complementary acquisition with the addition of Industrial, Petroleum and Mining Supplies of Toronto Ltd., d / b / a HosePower Canada.
- BlackHawk Industrial Acquires Florida-Based Fastener Distributor – BlackHawk Industrial, Tulsa, Oklahoma, has acquired Reliance Supply, an industrial fasteners distributor based in Jacksonville, Florida.
- Carlisle Cos. to acquire a supplier of building envelope systems – Carlisle Cos. Inc., Scottsdale, Arizona, has agreed to acquire or acquire Henry Co., a supplier of building envelope systems based in El Segundo, Calif., From subsidiaries of private equity firm American Securities LLC , for $ 1.6 billion. The purchase price represents 10.5x Henry’s adjusted EBITDA for the 12 months ending May 31, including cost synergies during the year.
- Ingersoll Rand confirms cash offer to acquire SPX Flow – Ingersoll Rand Inc., Davidson, NC, confirmed Monday that on June 10, it made a non-binding cash proposal to the board of directors of SPX Flow Inc. to acquire SPX Flow for $ 85 per share.
- Solve Industrial Motion Group acquired by Audax Private Equity – Solve Industrial Motion Group, the Charlotte, NC-based bearing manufacturer, was acquired by Audax Private Equity.
Sonepar USA to acquire Springfield Electric Supply – Sonepar USA Holdings Inc., a Charleston, South Carolina-based subsidiary of privately-owned Sonepar, has announced that it has agreed to acquire Springfield Electric Supply Co. Springfield, Illinois.
- EnVista acquires HCM Systems to expand its automation capabilities – EnVista, an Indianapolis-based software, consulting, managed services and automation solutions company whose customer base includes distributors, announced the acquisition of systems integrator HCM Systems, Chicago.
- SRS acquires the operator of three Chicago-based distributors – Building materials distributor SRS Distribution Inc., McKinney, Texas, has acquired Acorn Roofing Supply, Prairie State Exterior Products and 55 Building Supply, distributors of residential and commercial roofing, siding and other related products.
- Stellar Industrial Supply to acquire Robert G. Brewton – MRO distributor Stellar Industrial Supply, Tacoma, Wash., Has entered into an agreement to acquire Robert G. Brewton (RG Brewton).
- Charles D. Jones Co. acquires air conditioning services – Charles D. Jones Co., an HVACR distributor based in North Kansas City, Missouri, announced the acquisition of Air Conditioning Utilities, Omaha, Nebraska.
- Core & Main to acquire Pacific Pipe – As it prepares to go public, Core & Main LP, based in St. Louis, Missouri, has agreed to acquire Pacific Pipe Company Inc. Core & Main’s latest transaction is its 14th transaction since becoming an independent company in 2017.
- Builders FirstSource to Sell Eastern US Gypsum Distribution Business – Builders FirstSource Inc., Dallas, announced that it has agreed to sell its stand-alone gypsum distribution business in the eastern United States to L&W Supply.
- Winsupply acquires Simon’s Supply, plumbing and heating distributor – Winsupply Inc., Dayton, Ohio, announced the acquisition of plumbing and heating distributor Simon’s Supply Co. Inc.
- US LBM completes the acquisition of American Construction Source – Specialty building materials distributor US LBM Holdings LLC, Buffalo Grove, Illinois, completes the previously announced acquisition of American Construction Source from Angeles Equity Partners LLC and Clearlake Capital Group LP
- US LBM acquires distributor in Arizona – US specialty building materials distributor LBM Holdings LLC, of Buffalo Grove, Ill., Has acquired Home Center Supply, a specialty building materials supplier in central Arizona.
- GMS concludes agreement to purchase Westside – GMS Inc., Tucker, GA, has reached its $ 135 million agreement to purchase Westside Building Material. The acquisition of Westside was first announced in May.
- US LBM acquires distributor in Georgia – U.S. specialty building materials distributor LBM Holdings LLC, of Buffalo Grove, Ill., Has acquired Brand Vaughan Lumber Co., a Georgia-based distributor that operates five locations in the state.
- DSG expands to Michigan with the acquisition of an HVAC distributor – Dakota Supply Group, Plymouth, Minnesota, announced the acquisition of Calverley Supply Co. as part of an asset purchase effective July 1.
Did we miss something? Please send M&A announcements to [email protected]. We also welcome suggestions for “Behind the Deal,” our occasional series that dives deep into market changes in wholesale distribution.