The first month of the fourth quarter was a bright spot for wholesale distribution M&A. With the end of 2020 mercifully in sight, activity accelerated across the industry during October.
Deals unfolded in a variety of verticals — including building materials, safety, fasteners, industrial/MRO, plumbing, JanSan, electrical and others — and they came from a mix of large and small distributors alike.
The biggest transaction of the month — and one of the biggest of 2020 — occurred in mid-October when private equity firm Clayton, Dubilier & Rice closed on its $2.9 billion acquisition of White Cap, formerly a business division of HD Supply Holdings Inc. The deal was announced in August.
CD&R is now combining the business with Construction Supply Group to create a $4 billion-a-year distribution giant that will immediately rank in the Top 5 of MDM’s Market Leaders list for Building and Construction distributors and the Top 10 of our list of the 40 largest Industrial and Construction distributors.
October Deals
The White Cap/CSG deal was just one of the acquisitions that will shake up next year’s Market Leaders list. The month also saw Applied Industrial Technologies, BlackHawk Industrial, Endries, SRS Distribution and Winsupply announce acquisitions, while smaller independents made big moves as well.
Here are all the M&A announcements MDM covered during the previous month:
- SRS Distribution Acquires C.C. Supply — Building materials distributor SRS Distribution Inc. expands footprint in Ohio with the acquisition of a family-owned distributor of residential and commercial roofing, siding, windows and doors, and other products.
- Heritage Landscape Acquires Irrigators Supply — Landscape distributor Heritage Landscape Supply Group Inc., a McKinney, Texas-based subsidiary of SRS Distribution, announced its fourth acquisition of the last four months with the addition of Irrigators Supply Inc.
- Cummins-Wagner Acquires F.R. Mahony & Associates — Cummins-Wagner Co. Inc., an Annapolis Junction, Maryland-based distributor, has acquired F.R. Mahony & Associates Inc.
- SureWerx Acquires Geroline Inc. — Safety products manufacturer SureWerx, Vancouver, B.C., has acquired Geroline Inc., the St. Catharines, Ontario-based company behind the K1 Series brand of winter traction aids.
- New-Look White Cap/CSG Will Make Immediate Market Impact — After being acquired by a private equity firm and combined with Construction Supply Group, White Cap is now a $4 billion building materials distribution juggernaut.
- Entegra Attachments Acquires Bloom Manufacturing — Holding company Entegra Attachments, LLC of Saint Charles, Illinois, in July acquired Bloom Manufacturing, Inc, a 110-year-old manufacturer of standard and custom-designed hydraulic winches, speed reducers, parts and accessories, located in Independence, Iowa.
- Endries Acquires Fasteners Distributor K&L Sales — Endries International Inc., Brillion, Wisconsin, announced the acquisition of fellow Wisconsin fasteners distributor K&L Sales Inc.
- Applied Industrial Technologies Acquires Advanced Control Solutions — Applied Industrial Technology’s latest addition will help expand the company’s automation offering as well as its geographic reach in the Southeast U.S.
- Winsupply Makes Plumbing, Heating Supplier Acquisition — The company has completed the purchase of substantially all the assets of Avon Supply Co., a plumbing and heating wholesale distributor primarily serving the greater Boston market.
- SiteOne Landscape Supply Acquires Hedberg Supply — SiteOne Landscape Supply Inc. has acquired Hedberg Supply, the landscape supplies product division of Hedberg Aggregates, helping the company expand to Minnesota.
- BlackHawk Industrial Acquires D&L Supply — Latest portfolio addition for BlackHawk Industrial will help significantly expand the company’s distribution footprint into Pennsylvania.
- Brady Acquires Mission Janitorial & Abrasive Supplies — Brady, a Las Vegas-based full-line janitorial supply, equipment and foodservice distributor, has acquired Mission Janitorial & Abrasive Supplies, San Diego, California.
- Heritage Landscape Acquires Aquarius Supply — New addition for Heritage Landscape Supply expands the company’s footprint into the Mid-Atlantic and Northeast regions of the U.S.
- Emerson to Acquire Progea Group — Emerson says the acquisition will complement the company’s portfolio and “help customers in discrete and hybrid end markets accelerate digital transformation.”
- SiteOne Landscape Supply Acquires Burnco Landscape Centres — Landscape supply distributor SiteOne Landscape Supply Inc. has acquired Burnco Landscape Centres Inc., a wholly owned subsidiary of Burnco Rock Products Ltd.
Did we miss anything? Please send M&A announcements to editor@mdm.com. We also welcome suggestions for “Behind the Deal,” our occasional series that takes a deep dive into market-shifting moves in wholesale distribution.
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