All your exclusive premium content in one location.
With 2024 shaping up to be another big year in distribution M&A, we spoke with several investment banks on the state of industry dealmaking, what’s driving it, best practices and the outlook for 2025.
MAPI: U.S. still the “beggarly neighbor” to trading partners China, EU, Japan and South Korea.
How ITR Economics’ forecasts work and reasons for optimism in 2013.
Ferguson Waterworks expands footprint in Hawaii’s water and sewer supply business
Net loss narrowed by $12.2 million relative to a year earlier.
Distribution Segment sales declined 3.9 percent.
Channels are shifting thanks to convergence, product technology and e-commerce.
The Houston-area plant will replace Airgas’ Deer Park plant.
Marks: The direction of the tide may be more important than the size of the wave.
December industrial production up in both the euro area and the EU27.
In the age of automation, the challenge is creating jobs that only people can perform.
ERIKS expands in the South and in Poland in acquisitions made over the past month.
Sales growth for the global electrical distributor driven by strategic acquisitions; on a constant, same-day basis, sales were down 1.8 percent.
Acquisition would expand Bossard’s reach in electrical engineering products.
Grainger’s sales increase in the U.S. was 7%.
Third-quarter sales for the manufacturer declined 3 percent.
De-emphasize activities that do not take full advantage of core competencies and motivate managers to operate with a new performance discipline.
The new e-commerce website offers information on more products than in the print catalog.
Danbury Winsupply will serve plumbing and heating contractors in western Connecticut and southeast New York state.
December manufacturing technology orders, as reported through the USMTO program, were up 17.8% from November.
Most other segments had more moderate pricing shifts in the fourth quarter and in 2012 overall.
Stock Building Supply, Raleigh, NC, has acquired Albuquerque Door, previously owned by Orepac Building Products. Albuquerque Door assembles pre-hung exterior and interior doors, distributes vinyl windows, and manufactures specialty architectural millwork items for national and custom builders in the Albuquerque and Santa Fe markets.
The company operates from one location in Albuquerque; the acquisition adds approximately 50 associates to the Stock family. All senior management, including manager Carolyn Kidd, will remain with the company.
Stock Building Supply now operates 321 locations in 34 states, with reported sales of $5.3 billion for the fiscal year 2006. Stock Building Supply is a subsidiary of Wolseley plc of Theale, England, which had sales in fiscal …
While countless offices in this country have the NCAA Men’s Basketball Championship pool sapping the life out of productivity this week, I’m guessing there are at least a few pools estimating the date of sale for Home Depot Supply. I don’t know what the Vegas odds are, but the probability is close to 100 percent in my book that we see a deal happen. Here’s why I think it will be sooner rather than later.
Home Depot CEO Frank Blake said that it was important to determine a course of action for HD Supply so that the company didn’t have a foot on the dock and a foot on the boat, as MDM reported on the company’s refocus on retail.
Let’s get out the spyglass and look at that statement. If …
Beacon Roofing Supply, Inc., Peabody, MA, has agreed to acquire North Coast Commercial Roofing Systems, Inc., a Twinsburg, OH-based distributor of commercial roofing systems and related accessories, with 16 locations in eight U.S. states.
  ;
North Coast has branches in Ohio, Illinois, Indiana, Kentucky, Michigan, New York, Pennsylvania and West Virginia. There is minimal overlap with Beacon’s existing locations.
  ;
North Coast gives Beacon with its first locations in three states: New York, Ohio and West Virginia. North Coast employs 197 associates and had sales of about $253 million for the fiscal year ended March 31, 2006.
  ;
It will operate as a separate region under the North Coast name.
  ;
Beacon …
ISCO Industries, Louisville, KY, distributor and supplier of polyethylene (HDPE) piping products, has purchased Fraser Mining and Industrial Supply Company in Mansfield, TX.
Owens Corning and Saint-Gobain have agreed to merge Owens Corning’s Reinforcements Business and Saint-Gobain’s Reinforcements and Composites Business (a part of the entity known as Vetrotex) into a new company that will be named OCV Reinforcements.
On July 27, 2006, Owens Corning and Saint-Gobain jointly announced that they were in discussions to merge their respective reinforcements and composites businesses, creating a global company in reinforcements and composite fabrics products, with worldwide revenues of $1.8 billion (1.5 billion) and 10,000 employees.
The agreement stipulates that the joint-venture will be owned 60% by Owens Corning and 40% by Saint-Gobain. After a minimum of four years, Saint-Gobain will have the option to sell its stake to Owens Corning, and …
Illinois Tool Works Inc., producer of highly engineered components, equipment, consumable systems, and specialty products, has bought Quasar International, Inc., the inventor of PCRT (Process Compensated Resonant Testing), a NDT (Nondestructive Test) method. Quasar is in Albuquerque, NM. Terms of the transaction were not disclosed.
San Diego, CA-based Dixieline Lumber Company, a supplier of building materials to professional builders and contractors, has purchased Sandstone Brick Company. Dixieline is a division of Pro-Build Holdings.
A lumber, truss and building materials supplier, Sandstone Brick Company, Bakersfield, CA, serves the professional contractor retail market in California’s Kern County. The organization is comprised of a truss manufacturing plant and lumber distribution yard.
“The growing Southern California metro markets have performed favorably over the last few years and are expected to regain their strength in years to come. said Joe Lawrence, president of Dixieline Lumber Company. “The acquisition of Sandstone Brick Company complements our current operations in …
F & M Mafco, Inc., Cincinnati, OH, a distributor of construction and industrial supplies, has agreed to buy Carolina Industrial Tools, Inc., Charlotte, NC. Carolina is a distributor of tools, equipment, consumables, machinery and related products.
Brady Industries, Las Vegas, NV, a janitorial supply distributor, has acquired Boulder Creek Supply, a Boise, ID-based company.
Boulder Creek was founded in 1999. With this acquisition, Brady Industries expands its geographic footprint to seven locations with plans for further expansion in 2007.
"The Boise acquisition compliments our regional coverage of the Idaho market, said Travis Brady, president of Brady Industries. "With branches in Salt Lake City and Idaho Falls, this acquisition strengthens our regional service capabilities."
Brady Industries supplies janitorial supplies and commercial cleaning equipment and service in the Las Vegas market. Brady has expanded its offering to include a complete warewash product line along with its already extensive kitchen cleaning and sanitation program.
Columbus McKinnon Corporation, Amherst, NY, manufacturer of material handling products, has sold Larco Industrial Services, Ltd., the Canadian subsidiary of the company’s wholly owned subsidiary Crane Equipment & Service, Inc.
Nucor Corp., Charlotte, NC, has acquired 96% of Toronto-based Harris Steel for C$46.25 in cash per share. Nucor intends to eventually buy all of Harris and take the company private.
The Financial Times is reporting that three teams of private equity firms are preparing for possible bids for HD Supply. Teams include: Bain Capital, Carlyle Group and Clayton Dubilier & Rice (owner of Rexel); Thomas H Lee Partners, Goldman Sachs and CCMP; and Blackstone, Kohlberg Kravis Roberts, Leonard Green Partners and Texas Pacific Group.
Barnes Group Inc., Bristol, CT, has acquired the assets of the Di-Dro Manifold Systems product line from Di-Dro Systems Inc. The Di-Dro Manifold System product line will be integrated into Barnes Group Inc.’s Associated Spring business segment.
The Di-Dro Manifold System product line is complementary to Associated Spring’s Nitrogen Gas Spring Manifold System product line. The addition of the Di-Dro Manifold System product line expands the company’s reach in high-quality gas springs for use in diverse industrial applications requiring high force and/or compact dimensions. Applications range from tool and die manufacturers, to industrial robots, to dump trucks to waste compressors around the world.
Related Links:
<A ...
SKF has agreed to acquire ABBA Linear Tech Co., Ltd., an Asian manufacturer of profile rail guides, based in Taiwan.
HD Supply White Cap Construction Supply, a business of HD Supply, has agreed to acquire GSI General Materials LLC, a distributor of concrete accessories, forming systems and fabricated rebar.
Stockholm, Sweden-based AxIndustries has acquired AB Sverull, a distributor of bearings, transmissions and seals, also based in Sweden.
Sverull has annual sales of SEK 125 million with more than 45 employees  ; at offices in five cities.
After the acquisition, AxIndustries will have annual sales of more than SEK 600 million in bearings, transmissions and seals. It has mroe than SEK 1.1 billion in sales overall. AxIndustries is a part of Axel Johnson International.
Sverull will continue to be run as an independent company in AxIndustries.
USG Corp, Chicago, IL, announced its specialty distribution subsidiary, L & W Supply, will acquire California Wholesale Material Supply Inc. for $280 million.
Last week saw a feeding frenzy of rumors in distribution, with action on both sides of the Atlantic. The biggest hunters suddenly became the hunted.
Praxair Inc., Danbury, CT, has agreed to buy The Linde Group’s industrial and medical gases business in Mexico. Linde’s Mexican business operates under the name of AGA S.A. de C.V. The transaction excludes the Mexican assets of the BOC Group, which Linde acquired as part of its acquisition of BOC.
The sale of Linde’s Mexican business is part of a mutual agreement between Praxair and Linde under which Linde acquired the Turkey-based industrial gases producer Karbogaz A. S. in July 2006. Karbogaz was formerly a joint venture company between Praxair and Ismail Aytemiz of Istanbul, Turkey.
AGA S.A. de C.V. has sales of about $75 million in fiscal 2006.
The acquisition of AGA S.A. de C.V. will increase our presence in the metropolitan area of Mexico City and place …
Lone Star Fasteners, Houston, TX, has acquired LWD Precision Engineering Co. Ltd., a manufacturer of precision engineered components for the global oil and gas industry, for $6 million. LWD, based in Leeds, UK, manufactures precision machined components for valves, actuators and other related critical applications.
We all left the presentation by Institute for Trend Research’s Alan Beaulieu feeling more than a little pessimistic. This is not surprising, given that Beaulieu’s economic forecast did not see any sort of recovery until 2010. What’s more, he forecast that things would get worse before they get better.
He spoke at the National Association of Wholesaler-Distributors annual meeting going on this week in Washington, D.C.
Beaulieu forecast the recession we are in right now – though he admits that in some areas he didn’t foresee how bad it could get. The first half of his presentation was filled with a lot of doom and gloom, but the second half was more productive, focused on strategies to come out the other side of this recession …
Modern Distribution Management’s December Inflation Index, which measures a cross-section of industrial supplies, was up 0.24% from the previous month, and up 7.86% from December 2007.
Please click below to view a print-ready pdf of the MDM Inflation Index for December 2008, listing the 10 individual product categories that make up the …
Source: Statistics Canada
Canadian wholesale revenues fell 1.6% from October to $44.4 billion in current dollars in November, as decreases in four out of seven sectors contributed to the third decline in four months. In terms of the volume of sales, wholesale sales were down 3%.
Canadian wholesalers sell to both the domestic and international markets, and are active importers and exporters. The decline in sales reflected both lower export demand for Canadian goods, a significant part of which flows through wholesale markets, and weaker sales in Canada.
At current prices, the machinery and electronic equipment sector declined 1.6% in November, reflecting a 1.9% sales drop in the machinery and equipment trade group, …
Barnes Group Inc., Bristol, CT, an international aerospace and industrial components manufacturer and logistical services company, reported several actions undertaken in 2008 to address deteriorating economic conditions and improve performance of its global business segments.
During the fourth quarter of 2008 our entire organization continued to proactively anticipate and adapt to the unprecedented changes affecting all of our businesses as a result of the tumultuous economy, said Gregory F. Milzcik, president and CEO. “Given the deceleration in global demand for our products and services we took numerous actions to improve our overall cost structure, enhance our manufacturing footprint, and strengthen our global operations.
A freeze on all …
Modern Distribution Management’s April Inflation Index, which measures a cross-section of industrial supplies, was up 0.47% from the previous month, and up 4.30% from April 2007.
Summary of MDM Inflation Index for the past 12 months:
April 2008 Index 282.4
March 2008 Index 281.1
February 2008 Index 279.0
January 2008 Index 277.2
December 2007 Index 275.9
November 2007 Index 274.7
October 2007 Index 273.6
September 2007 Index 273.5
August 2007 Index 273.3
July 2007 Index 272.4
June 2007 Index 271.7
May 2007 Index 271.2
Please click below to view a print-ready pdf of the MDM Inflation Index for April 2008, listing the ten individual product categories that make up the …
Modern Distribution Management’s May Inflation Index, which measures a cross-section of industrial supplies, was up 0.48% from the previous month, and up 4.61% from May 2007.
Summary of MDM Inflation Index for the past 12 months:
May 2008 Index 283.7
April 2008 Index 282.4
March 2008 Index 281.1
February 2008 Index 279.0
January 2008 Index 277.2
December 2007 Index 275.9
November 2007 Index 274.7
October 2007 Index 273.6
September 2007 Index 273.5
August 2007 Index 273.3
July 2007 Index 272.4
June 2007 Index 271.7
Please click below to view a print-ready pdf of the MDM Inflation Index for May 2008, listing the ten individual product categories that make up the …
Modern Distribution Management’s June Inflation Index, which measures a cross-section of industrial supplies, was up 0.54% from the previous month, and up 4.99% from June 2007.
Summary of MDM Inflation Index for the past 12 months:
June 20058 Index 285.3
May 2008 Index 283.7
April 2008 Index 282.4
March 2008 Index 281.1
February 2008 Index 279.0
January 2008 Index 277.2
December 2007 Index 275.9
November 2007 Index 274.7
October 2007 Index 273.6
September 2007 Index 273.5
August 2007 Index 273.3
July 2007 Index 272.4
Please click below to view a print-ready pdf of the MDM Inflation Index for June 2008, listing the ten individual product categories that make up the …
Distributors, to say the least, are facing more uncertainty now than in recent memory.
In a recent MDM Webcast, Manage the Panic of 2009: New Rules for New Economic Realities," Evergreen Consulting's Brent Grover says we are now seeing the worst business conditions in his decades of work in the industry.
"Distributors are not accustomed to dealing with this uncertainty," he told participants. "Or the speed of decline in demand and prices."
Now more than ever leaders need to avoid hunkering down, and instead strategically prepare their companies for the upswing. When the downturn does reverse course, fewer companies will emerge, …
While the lead article’s title – Manage the Panic of 2009 – might seem extreme, it’s important to clarify its real meaning. Reports we’re hearing from distributors in January indicate they are not in panic mode. On the contrary, every distribution company has become very focused by necessity on cost control, created by the panic and instability in financial markets.
I think that’s an important distinction. This isn’t a typical downturn, where a company just needs to reduce costs across departments by a certain percentage until the tide turns. This time a distributor needs to upgrade financial skills.
The traditional financing and cash flow models distributors have used for decades have changed significantly, with much tighter …
During the first part of 2008, the Brazilian economy experienced high growth in most sectors with an outlook for that expansion to continue. The first nine months saw loosened credit conditions, rising internal demand and strong export activity despite unrelenting currency appreciation.
But the fourth quarter was a different story. Growth slowed at an alarming rate.
Though the country is still in positive territory, the fourth quarter of 2008 was surprisingly on the downside, according to Fernando Sedano, an economic consultant for Manufacturers Alliance/MAPI based in Brazil. “I expect a tough first half of 2009.”
On the other hand, international companies that are already doing business there are seeing continued …
These select product groups provide a snapshot of inflation trends based on the Producer Price Index from the U.S. Bureau of Labor Statistics. Fourth quarter 2008 is compared with fourth quarter 2007, third quarter 2008 with fourth quarter 2008, and the full year 2007 with the full year 2008. Graphics depict trend for that product from the start of 2007.
The product groups in this report:
