June began with the announcement of one big deal moving forward and ended with another falling apart, bookending a relatively light month for M&A in distribution.
Most recently, foodservice provider Sysco Corp., Houston, TX, terminated its merger agreement with US Foods on June 29, days after the U.S. District Court in Washington, DC, granted the Federal Trade Commission's request for a preliminary injunction to block the proposed deal. This action also terminated an agreement with Performance Food Group to purchase US Foods facilities in 11 markets.
Earlier in the month, however, a big distribution deal did come together when Stock Building Supply Holdings Inc., Raleigh, NC, and Building Materials Holding Corp., Boise, ID, on June 2 announced plans to merge. The building materials distribution services and solutions company will continue to operate under both the Stock Building Supply and BMC names in their respective local markets. The company, to be based in Atlanta, GA, with its main operating center in Raleigh, NC, is expected to have an implied pro forma enterprise value of $1.5 billion.
In addition to that merger, the building materials sector again saw further consolidation, continuing a trend that started last fall.
Beacon Roofing Supply, Herndon, VA, acquired ProCoat Systems Inc., with branches in Denver and Fort Collins, CO.
Huttig Building Products Inc., St. Louis, MO, sold its Southwest Roofing Supply branch in Farmers Branch, TX, to Pacific Coast Supply LLC.
And Gibraltar Industries Inc., Buffalo, NY, a manufacturer and distributor of products for residential and industrial markets, acquired RBI Solar Inc., Rough Brothers Manufacturing Inc. and affiliates for $130 million.
In the safety sector, 3M, St. Paul, MN, has agreed to acquire Capital Safety, Bloomington, MN, from KKR for $2.5 billion. Capital Safety had sales for the fiscal year ended March 31 of $430 million.
Also, London, England-based international distribution and outsourcing group Bunzl plc continued its acquisitive ways of 2015 by acquiring four companies last month – one each in the U.S., Colombia, Canada and France.
Here are other key deals that occurred in June 2015:
Sonepar USA Acquires Eck Supply
FCX Performance Acquires Process Control Services
GHX Industrial Acquires Valley of Birmingham
Lincoln Electric Acquires Intellectual Property of Process Equipment Co.
RelaDyne Acquires Palatine Oil Company
KODA Distribution Group to Acquire Colonial Specialty Chemicals
Tech Air Acquires Geneva Gas & Supply
Cardinal Health to Acquire Harvard Drug Group
Singer Equities Acquires Unisource Manufacturing
