The frenetic pace to close an otherwise tumultuous year was fitting based on the trends that MDM outlined in our recent look back at the year in M&A. In the final month of 2020, distribution M&A continued its “return with a vengeance” theme that emerged in the latter half of the year, especially the fourth quarter.

December saw a staggering 34 deals involving distributors or manufacturers that sell through distribution — by far the busiest month of 2020. And the month’s highlights center on another theme that has emerged in recent months: consolidation among building material distributors.

For example, last month saw: US LBM Holdings acquire three companies, Hardwoods Distribution Inc. acquire two and U.S. Lumber acquire one. Meanwhile, Specialty Building Products LLC (the parent of U.S. Lumber) sold a majority ownership share to a PE firm, Beacon Roofing Supply Inc. divested its interior products business and The Home Depot closed on its acquisition of HD Supply Holdings Inc.

December Deals

There were many more notable transactions across verticals, of course, and in case you missed anything, here are all the M&A announcements — primarily involving distributors but also manufacturers that sell through the channel — MDM covered during the previous month (click the hyperlinked headline for more details):

• Wajax Acquires Tundra Process Solutions — Canadian industrial distributor Wajax Corp. announced it has agreed to acquire Calgary, Alberta-based distributor Tundra Process Solutions Ltd. for C$99.1 million (US$77.7 million).
• The Home Depot Completes Acquisition of HD Supply — The Home Depot, Atlanta, has completed the acquisition of HD Supply Holdings Inc. for $8 billion. The agreement to acquire HD Supply was announced on Nov. 16.
• PPG Completes Acquisition of Ennis-Flint — PPG, Pittsburgh, Pennsylvania, announced that it has completed its acquisition of Ennis-Flint for $1.2 billion.
• US LBM Acquires Western North Carolina Distributor — Specialty building materials distributor US LBM Holdings LLC, Buffalo Grove, Illinois, agreed to acquire Jennings Builders Supply & Hardware, a building products dealer with four locations in western North Carolina. Financial terms of the deal, which is expected to close by the end of the year, weren’t disclosed.
• Private Equity Firm Takes Majority Stake in Specialty Building Products — Specialty Building Products LLC — the Duluth, Georgia-based parent of U.S. Lumber and other businesses — has agreed to The Jordan Co. LP acquiring a majority ownership position in SBP from funds affiliated with Madison Dearborn Partners LLC. SBP’s senior management team, including President and CEO Jeff McLendon, will maintain a significant equity stake in SBP and continue to lead the company.
• Ohio Transmission Corp. Acquires JCI Industries — Ohio Transmission Corporation (OTC), Columbus, Ohio, acquired JCI Industries, a provider of pumps, motors, controls, field service and remanufacturing to commercial, industrial and environmental customers throughout the Midwest.
• Individual FoodService Merges with Brady Industries — Bell, California-based Individual FoodService (IFS) — a portfolio company of the private equity firm Kelso & Co. and a distributor of foodservice disposables and JanSan products — will merge with Brady Industries, a Las Vegas-based JanSan distributor.
• Brady Acquires Arkansas Distributor — Brady Industries, a Las Vegas-based full-line janitorial supply, equipment and foodservice distributor, acquired Kerr Paper & Supply in Little Rock, Arkansas. Kerr Paper & Supply is a JanSan distributor that serves central and northwest Arkansas.
• Beacon to Divest Interior Products Business — Beacon Roofing Supply Inc., Herndon, Virginia, has agreed to sell its interior products business — consisting of 81 branch locations where it distributes a variety of construction products to both residential and commercial contractors — to affiliates of the private equity firm American Securities LLC for $850 million.
• Protective Industrial Products Sold from One PE Firm to Another — Private equity firm Odyssey Investment Partners has agreed to acquire PPE and industrial safety product supplier Protective Industrial Products Inc. (PIP) from Audax Private Equity.
• Atlas Copco Completes Acquisition of Perceptron — Swedish manufacturer Atlas Copco has obtained all regulatory approvals and completed the $60.8 million acquisition of Perceptron that was announced on September 28.
• Heritage Landscape Supply Acquires Two Companies — Landscape distributor Heritage Landscape Supply Group Inc., a McKinney, Texas-based subsidiary of SRS Distribution, has acquired two companies — REAMS Sprinkler Supply, Lincoln, Nebraska, and Irrigation Station, Houston, Texas.
• PPG to Acquire Finnish Paint and Coatings Manufacturer Tikkurila — Paints, coatings and specialty materials supplier PPG, Pittsburgh, Pennsylvania, has agreed to acquire Tikkurila, a Vantaa, Finland-based manufacturer and distributor of paints and coatings, for €$1.1 billion (US$1.3 billion).
• US LBM Acquires Tri-County Building Supplies — Specialty building materials distributor US LBM Holdings LLC, Buffalo Grove, Illinois, has acquired Tri-County Building Supplies, a building materials distributor in southern New Jersey.
• NW Synergy Acquires Southeastern Paper Group — NW Synergy (NWS) — the combination of JanSan and facilities maintenance distributors North American, WAXIE Sanitary Supply and SWPlus — acquired Southeastern Paper Group (SEPG), Spartanburg, South Carolina.
• Bunzl Announces Preliminary 2020 Sales, Completion of Acquisitions — Bunzl PLC, the London-based specialist international distribution and services group, closed on the acquisitions of Snelling, a Canadian business focused on the sale of cleaning and hygiene products and industrial and foodservice packaging, and SP Equipamentos, a personal protection equipment distributor based in Sao Paulo, Brazil.
• HDI Makes Third Acquisition of 2020 — Building products distributor Hardwoods Distribution Inc., Langley, British Columbia, has, through its subsidiary Rugby Holdings LLC, acquired River City Millwork Inc. for $4.2 million.
• Electrocomponents Acquires Synovos — Integrated supply chain management services provider Synovos, based in Radnor, Pennsylvania, has completed a $145 million sale to Electrocomponents plc, a global solutions provider based in London. The acquisition creates a single company offering maintenance, repair and operations (MRO) and supply chain services to Europe, North America and the global marketplace.
• Eaton to Acquire a 50% Stake in HuanYu High Tech — Power management company Eaton, Dublin, Ireland, has agreed to acquire a 50% stake in HuanYu High Tech, a subsidiary of HuanYu Group that manufactures and markets low-voltage circuit breakers and contactors in China, and throughout the Asia-Pacific region. HuanYu High Tech had 2019 sales of $106 million and has production operations in Wenzhou, China.
• TriMas Closes on Affaba & Ferrari Acquisition — TriMas, the Bloomfield Hills, Michigan-based manufacturer of engineered and applied products, has completed its previously announced acquisition of Affaba & Ferrari, an Italian designer and manufacturer of precision caps and closures for food & beverage and industrial product applications.
• HDI Acquires Aura Hardwoods — Building products distributor Hardwoods Distribution Inc., Langley, British Columbia, has, through its subsidiary Hardwoods Specialty Products US LP, acquired Aura Hardwoods for $12.7 million.
• Ingram Micro Sold to PE Firm for $7.2 Billion — The Los Angeles-based private equity firm Platinum Equity has agreed to acquire Irvine, California-based technology distributor Ingram Micro Inc. for $7.2 billion. Platinum is acquiring the business from HNA Technology Co. Ltd, a part of HNA Group.
• Ingersoll Rand to Acquire Tuthill Vacuum and Blower Systems — Ingersoll Rand Inc., Davidson, North Carolina, has agreed to acquire Tuthill Vacuum and Blower Systems, Springfield, Missouri, for $184 million.
• Rexnord Agrees to Acquire Hadrian — Rexnord Corp., Milwaukee, Wisconsin, has agreed to acquire Hadrian Inc., a provider of washroom partitions and lockers.
• Houston Wire & Cable to Sell Southern Wire Division — Houston Wire & Cable Co., Houston, Texas, has agreed to sell its Southern Wire business, an Olive Branch, Mississippi-based wholesale distributor of wire rope and rigging products, for $20 million, subject to a working capital adjustment.
• Three PT/Bearings Suppliers Form New Company — Three power transmission and bearings suppliers — P.T. International (PTI), Charlotte, North Carolina; IPTCI Bearings, Chanhassen, Minnesota; and LMS Bearings, Lafayette, Colorado — have united under a new master brand called Solve Industrial Motion Group.
• Siteone Landscape Supply Acquires Dallas Distributor — SiteOne Landscape Supply Inc., Roswell, Georgia, has acquired Alpine Materials, a Dallas, Texas-based, single-branch distributor of mulches, soils and hardscape materials to landscape professionals.
• FEMSA, North American and WAXIE Acquire SWPlus — NW Synergy (NWS) — the combination of JanSan and facilities maintenance distributors North American and WAXIE Sanitary Supply — acquired SWPlus, a Wichita, Kansas-based integrated distributor of sanitary maintenance supplies and equipment, food service disposables, safety products, skin care and more.
• U.S. Lumber Acquires Mid-State Lumber — U.S. Lumber Group LLC, a wholly owned subsidiary of Specialty Building Products LLC, has agreed to acquire Mid-State Lumber Corp. Financial terms of the deal were not disclosed.
• Belt Power Acquires Rubber Service — Belt Power LLC, a Marietta, Georgia-based distributor and fabricator of lightweight conveyor system components, has acquired Rubber Service Corp., Commerce City, Colorado. Financial terms of the deal, which closed Dec. 1, weren’t disclosed.
• Graybar Acquires Shingle & Gibb Automation — Electrical distributor Graybar, St. Louis, Missouri, has completed the acquisition of Shingle & Gibb Automation.
• US LBM Acquires Connecticut’s Ridgefield Supply — Specialty building materials distributor US LBM Holdings LLC, Buffalo Grove, Illinois, has acquired Ridgefield Supply Co., a Ridgefield, Connecticut-based building products dealer.
• Brady Acquires Memphis JanSan Distributor — Brady Industries, a Las Vegas-based full-line janitorial supply, equipment and foodservice distributor, acquired Topmost Chemical & Paper, Memphis, Tennessee.
• Timken Acquires Aurora Bearing Co. — Bearings manufacturer The Timken Co., North Canton, Ohio, acquired Aurora Bearing Co., Montgomery, Illinois. Financial terms of the transaction were not disclosed.

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.

Join MDM in February for a Virtual M&A Summit

MDM is hosting a Virtual M&A Summit on Feb. 25. We’ll soon be sending out the full agenda and speaker lineup, but it will be an informative and engaging look at the entire M&A landscape, including considerations for buyers and sellers, advice on performing due diligence in a pandemic and a macro look at which sectors are projected to see the most consolidation in 2021.