Merger and acquisition activity in the U.S. distribution sector remained “relatively stable” in the first quarter of 2026, according to the latest analysis from investment bank PMCF.
The firm’s first-quarter “Distribution M&A Pulse” report, however, also found that transactions declined globally by double-digits to start the year.
PMCF analysts identified 78 announced transactions in the U.S. during the first three months of the year compared to 82 in the first quarter of 2025, while global activity slipped by 12.4% year-over-year.
The overall slowdown, the firm said, reflected “elevated supplier uncertainty” — including concerns related to the closure of the Strait of Hormuz — as well as a “dynamic tariff environment” that led to “additional volatility in cross-border pricing and sourcing strategies.” In the U.S., however, rising wholesale prices and distributor margins have supported earnings “durability” in the industry — and more confidence among buyers.
The report suggested that prospective acquirers were selective in the quarter, often looking for acquisitions that were “the most defensible.” Buyers also increasingly focused on the aftermarket and “the quality and durability of service-driven revenue streams.”
“With over $2T of private equity dry powder chasing a narrower universe of financeable assets, capital is concentrating on companies that occupy specialized, hard-to-replicate positions in the market,” analysts wrote.
