The calendar has turned to April, which means we're already in the second quarter of 2018. Looking back on Q1, it was flush with merger & acquisition activity for industrial distributors, suppliers and service providers — showing no sign of consolidation slowdown in this market.
Below is a chronological recap of such M&A activity that occurred in Q1 2018. Of course, this doesn’t cover every deal that’s happened, as not every distributor or supplier acquisition is made public. I’ve also included divestments and privatizations in this list. Some of these deals were finalized earlier, but weren't announced immediately. And, while some of the companies involved here aren't 'industrial' distributors or suppliers by definition, they are still relevant enough to the market to warrant inclusion.
January
SBP Holdings Subsidiary PRC Industrial To Acquire Fellow Maine Distributor ACE Conveyor Services: PRC Industrial Supply, headquartered in Portland ME, announced a deal with ACE Conveyor Services of Belgrade, ME to acquire all of its assets and hire its entire staff effective immediately. The move comes after negotiations between the two companies over the previous few months. PRC Industrial Supply, established in 1895 formerly known as Portland Rubber Company, is a sales and service company, specializing in conveyor belt, industrial hose and fluid power components. With three locations and 28 employees, the company offers a full range of services including on-site conveyor belt installations, industrial hose as well as in-house repairs of hydraulic pumps, motors, valves and cylinders. PRC Industrial Supply has locations in Portland and Bangor, ME., and Burlington, MA. (dba Stewart Hunt).
DXP Enterprises Acquires Tool Distributor Application Specialists: DXP Enterprises announced its completed acquisition of Auburn, WA-based Application Specialists, Inc. (ASI) — a distributor of cutting tools, abrasives, coolants and machine shop supplies. Terms of the deal were not disclosed. Founded in 1989, ASI has 33 employees across three locations across Washington: Auburn, Everett and Vancouver. Its primary end markets are in aerospace, construction, medical and firearms. ASI had 2017 full year sales of approximately $37 million, with adjusted EBITDA of $2.9 million. It marks DXP's first acquisition since 2015, a year in which it expanded westward by adding California-based Cortech Engineering and Oregon-based Tool Supply.
Surface Prep. Distributor/Supplier Marco Acquires Jad Equipment: Houston-based Marco Group International Opco announced Jan. 2 that it has completed the acquisition of assets from JAD Equipment Co., an Ohio-based distributor of surface preparation equipment and consumables. Founded in 1944, Marco is a manufacturer, distributor, and service provider of surface preparation equipment and consumables to industrial contractors in the downstream energy, infrastructure, and industrial markets throughout the U.S. and internationally. Marco serves industrial contractors by offering a comprehensive line of abrasives, blasting equipment, coating equipment, engineered systems, rental equipment and safety products. Marco also provides in-field services for repairs and in-house design teams for custom solutions.
Rexnord To Acquire Germany-Based Centa Power Transmission: Milwaukee, WI-based Rexnord Corp. announced that it has reached an agreement to acquire Centa Power Transmission, a Germany-based manufacturer of premium flexible couplings and drive shafts for industrial, marine, rail and power generation applications. The transaction was expected to close by the end of February. Terms were not disclosed, though Rexnord stated the acquisition brings approximately $100 million of revenue from Centa. Headquartered in Haan, Germany, Centa (Centa Antriebe Kirschey GmbH) has been engaging in solving complex drive train and torsional vibration challenges since 1970. Centa’s couplings are primarily used for diesel-driven applications where the couplings dampen the torsional vibrations of the engine.
Applied Industrial Technologies To Acquire FCX Performance: On Jan. 9, Applied Industrial Technologies made major waves in the MRO market when it announced its intention to acquire fellow large distributor FCX Performance. The deal closed less than a month later on Feb. 2 for approximately $784 million. Cleveland, OH-based Applied was No. 12 on ID's 2017 Big 50 List, while Columbus, OH-based FCX was No. 30. As a distributor of specialty process flow control products and services, FCX operates 68 locations with more than 1,000 team members.
Bunzl Acquires Industrial PPE Distributor Revco: International distribution and outsourcing group Bunzl plc announced the acquisition of Santa Fe, CA-based Revco, a manufacturer and distributor of personal protective equipment to redistributors in a variety of end markets, primarily the welding and industrial sectors throughout the U.S. Terms were not disclosed. Doing business as Black Stallion, Revco's 2017 full year sales are expected to be $37 million, according to Bunzl.
Fairmont Supply Acquires Fastener Distributor THB Inc.: Washington, PA-based MRO supplied distributor Fairmont Supply Company, No. 49 on ID's Big 50 List, announced that it has acquired Salt Lake City, UT-based fastener distributor THB Inc. Terms were not disclosed. THB, which also has a location in Boise, ID, is an industrial fastener distributor and service provider of kitting, packaging and specialized quality control. Founded in 1986 by brothers Robb and Scott Harbertson, the company carries more than 400,000 products and has maintained their ISO 9001 registration since 2003. In 2004 they added ASME NQA-1 compliance for the nuclear industry.
Energizer To Add Rayovac, Buying Spectrum Brands For $2 Billion: Energizer Holdings announced that it has entered into a definitive agreement to acquire Spectrum Brands' Global Battery and Portable Lighting Business (Spectrum Batteries) for $2.0 billion in cash. Anchored by the Varta and Rayovac brands, the portfolio has a longstanding history, global footprint and diversified range of products including alkaline, carbon zinc, hearing aid and nickel metal hydride rechargeable batteries as well as battery chargers and portable lighting products.
Midwest Wholesale Hardware Acquires Strauss Lock Distributors: High Road Capital Partners announced that its portfolio company, Midwest Wholesale Hardware (Kansas City, MO) has completed the acquisition of the assets of Strauss Lock Distributors for an undisclosed amount. Based in Des Moines, IA, Strauss Lock Distributors (SLD) is a wholesale distributor of residential door hardware and security products. In addition to its Des Moines headquarters, the company operates distribution centers in Phoenix, AZ and Charlotte, NC. SLD provides expert customer service and tailored solutions for the residential builder market.
Ingersoll-Rand Acquires European Facility Chiller Firm ICS Cool Energy: Ingersoll-Rand, a global provider of comfortable, sustainable and efficient environments, announced the acquisition of United Kingdom-based ICS Group Holdings Limited (ICS Cool Energy). ICS Cool Energy will be part of the company’s Commercial Heating, Ventilation and Air Conditioning (HVAC) business. ICS Cool Energy is a privately owned temperature control and HVAC solutions and services company that specializes in temporary rental of energy efficient chillers for commercial and industrial buildings across Europe. It also sells, permanently installs and services high-performance temperature control systems for all types of industrial processes.
Wolseley Industrial Acquires Southern California's Duhig Stainless: Pipes, valves and fittings distributor Wolseley Industrial Group, the industrial division of Ferguson Enterprises, has announced the acquisition of Duhig Stainless, completed Jan. 22. The company will operate as Duhig Stainless, a Wolseley Industrial Group company. In business since 1943, Duhig Stainless is a Modesto, CA-based distributor of fluid control products, including valves, instrumentation, pipe and tubing and serves customers in the biopharmaceutical, food and beverage, petrochemical and waterworks industries. They have three California locations: Los Angeles, Modesto and San Diego. Wolseley Industrial was No. 16 on ID's Big 50 List.
Rotating Equipment Firm Blackstone Industrial Services Acquires Nuovo Parts Inc: Blackstone Industrial Services, a Calgary, Alberta-based critical rotating equipment services company, has closed its acquisition of Nuovo Parts Inc., a key North American distributor and Authorized Service & Sales Channel of Baker Hughes, a GE company. Nuovo Parts has been a distributor and supplier of GE and Nuovo Pignone S.p.A. spare parts for more than two decades.
February
SBP Holdings Subsidiary Singer Equities Acquires Smith Industrial Rubber & Plastics: Houston-based Singer Equities, Inc. has acquired Smith Industrial Rubber & Plastics Inc., headquartered in Rockford, IL. Smith Industrial is a distributor and fabricator of hydraulic hose and fittings, conveyor belting, industrial hose, sheet rubber and die cut parts from plastic and rubber. The business was founded in the 1940s as a division of Smith Oil Corp. who was a dominant distributor of petroleum, rubber products and select automotive parts through most of the 20th century in the Rock River valley. Current owners Scott Greenfield and Tom Rudnicki were originally salesmen for Smith Industrial Rubber. Tom Rudnicki will remain as General Manager and will continue operating under the Smith Industrial Rubber and Plastics name.
PIP Founders Partner With Audax Private Equity To Recapitalize Company: Audax Private Equity announced that it has partnered with the Milot and Tao families, co-founders of Protective Industrial Products Global Holdings Inc., to re-capitalize the company, a global supplier of hand protection products and other consumable personal protective equipment. Joe Milot will continue as President and CEO of PIP Global and both the Milot and Tao families will retain significant ownership interests in the Company. Terms of the transaction were not disclosed.
ParkOhio Acquires Closed Die Forging Supplier Canton Drop Forge: Cleveland, OH-based ParkOhio announced that it has acquired Canton Drop Forge, Inc., a custom closed dropped forging supplier headquartered in Canton, OH. Canton Drop Forge is a developer and manufacturer of closed die forgings and drop forgings for high-performance applications. The company serves the industries of aerospace forgings, ground transportation and locomotive forging, oilfield forging, power generation and more. ParkOhio operates 64 manufacturing sites and 65 supply chain logistics facilities, through three reportable segments: Supply Technologies, Assembly Components and Engineered Products.
NEFCO Corp. Acquires Contractors & Industrial Supply: Hartford, CT-based The NEFCO Corporation, a distributor of construction and industrial supplies, has announced its acquisition of Contractors & Industrial Supply, Inc., a dynamic specialty construction distributor servicing the Southern Virginia and North Carolina markets.
A&M Industrial Acquires Vermont's Industrial Tool Specialist: Rahway, NJ-based A&M Industrial Inc., has acquired Industrial Tool Specialist (ITS), an industrial distributor headquartered in Springfield, VT. The team in Vermont will operate as ITS, a division of A&M Industrial, and will continue to service customers from their offices in Springfield. A&M Industrial is a full-line industrial supplier and operates a 160,000-square foot distribution center in Cranbury, NJ and sales offices throughout the Mid-Atlantic region. The company offers a diverse line of MRO products, with a team of product experts in categories such as cutting tools and abrasives, safety products, material handling & storage equipment and process equipment. Additionally, A&M operates a variety of integrated supply and vendor managed inventory programs.
AIV Acquires Fellow Master Valve Distributor Zenith Supply: The Valve Manufacturers Association of America recently reported that Houston-based global vales and actuators distributor AIV, LP has acquired Pittsburgh, PA-based Velan valves master distributor Zenith Supply Company for an undisclosed amount. AIV is a wholesale distributor of valves and actuators for the oil and gas, power generation, chemical, petrochemical, refining, pulp and paper and water treatment industries. The company was founded in 1991 and has additional stocking locations in the U.S., Canada, United Kingdom, Dubai and Singapore, with more than $80 million in worldwide inventory. Founded in 1946, Zenith Supply is a master distributor of Velan valves – a manufacturer of valves used primarily in power and downstream applications of the energy industry. Specializing in pressure seal valves, Zenith typically holds approximately $25 million in inventory, making them a “go-to” provider for hard-to-find and long-lead-time items. Zenith Supply will continue to operate under its own name and in its current facilities in Pittsburgh for the foreseeable future.
Generac Acquires Mexico City-Based Selmec Equipos Industriales: Waukesha, WI-based Generac, a global designer and manufacturer of generators and other engine powered products, announced the signing of a purchase agreement to acquire the shares of Selmec Equipos Industriales, S.A. de C.V. and its wholly-owned subsidiaries from Enesa Energia, S.A. de C.V. and Enesa, S.A. de C.V. The agreement includes the power generator product and after-sale support services of the business. Selmec, founded in 1941 and headquartered in Mexico City, is a designer and manufacturer of industrial generators from 10 kW to 2,750 kW. With approximately 300 employees and 100,000 square feet of production capacity, Selmec offers a service platform and specialized engineering capabilities, together with robust integration, project management and remote monitoring services.
Dearing Compressor & Pump Buys Kruman Equipment Co.: Dearing Compressor & Pump Co., the second-oldest Gardner Denver industrial air compressor distributor, recently completed its first ever acquisition, merging with the oldest Gardner Denver distributor, Pittsburgh-based Kruman Equipment. The acquisition allows Dearing to effectively double their industrial air compressor business while providing counterbalance to the dynamic energy market.
American Producers Supply Acquires Fellow 3M Premier Distributor Louisville Mill Supply: Marietta, OH-based American Producers Supply Company, a major supplier of industrial, construction and oilfield supplies in the Midwest, announced the acquisition of Louisville Mill Supply, a longstanding industrial supplier with locations in Louisville, KY, Southern Kentucky and Indiana. The acquisition extends the geographic coverage of American Producers to now include a large part of Kentucky, Northern Tennesee and a portion of Indiana. Louisville Mill Supply currently has locations in Louisville, Glasgow, KY and Ferdinand, IN. With the addition, American Producers now has 12 locations in the Midwest.
Bluff Manufacturing Acquires Wesco Industrial Products In Material Handling Deal: Investment holding company Wincove Private Holdings, owners of material handling manufacturer Bluff Manufacturing, and investment bank The DAK Group, owners of Wesco Industrial Products Inc., announced that Bluff Manufacturing has acquired Wesco Industrial Products for an undisclosed amount. Fort Worth, TX-based Bluff Manufacturing is a provider of industrial equipment that enhances the safety and efficiency of loading docks and warehouses, while North Wales, PA-based Wesco Industrial Products is a supplier of branded non-motorized material handling equipment in five categories: drum handling, hand trucks, lift equipment, platform trucks and related products.
Tencarva Machinery Boosts Southern Foothold, Acquires Saladin Pump & Equipment: Greensboro, NC-based Tencarva Machinery Company (No. 44 on ID's Big 50) announced the acquisition of Saladin Pump & Equipment Co., effective Feb. 5 for an undisclosed amount. Founded in 1985 by John Saladin Sr., Saladin Pump & Equipment is an industrial pump distributor based in Beaumont, TX, with a satellite office in Lake Charles, LA. The company serves the southeast Texas and southwest Louisiana markets, catering to industrial plants. According to its website, the company has more than $11 million in annual sales, 18 product lines and 16 employees. Saladin Pump is a long-time Goulds distributor and, in addition to the ITT companies, it represents Xylem, John Crane, Warren-Rupp, Roper, Liquiflo and Prominent, as well as many other manufacturers.
Ohio Transmission Corp. Acquires Compressed Air Master Distributor: Ohio Transmission Corporation, an industrial equipment service provider and distributor headquartered in Columbus, OH, announces the acquisition of Compressed Air Systems, LLC. Compressed Air Systems, headquartered in Lafayette, LA, is a provider of compressed air products and services to various industries in south Louisiana — from offshore drilling and production to marine, chemical plants, refineries and industrial applications. The company, which also has locations in Baton Rouge, LA and New Orleans, is a Quincy Compressor master distributor.
Anderson Metals Privately Acquired By Wynnchurch Capital: Wynnchurch Capital, LLC, recently announced that it has completed an investment in Anderson Metals Corporation, Inc. Anderson is a manufacturer of brass fittings, valves, pipe nipples and related products to the plumbing, hardware and general industrial end-markets. The company is headquartered in Kansas City, MO and was founded in 1947.
Fluid Power Distributor Triad Technologies Acquires Cincinnati Hose & Fittings: Vandalia, OH-based Triad Technologies, LLC, a distributor of fluid power and automation products, recently announced it has acquired Cincinnati Hose & Fittings and its subsidiary Kentucky FluidAir to further expand its product offering in key markets. Cincinnati Hose & Fittings is an authorized Parker Hannifin full-line fluid connector distributor with two ParkerStore locations. The company has served customers in southern Ohio and northern Kentucky for more than 35 years.
Colony Hardware Corp. Acquires Florida's Allied Fastener & Tool: Orange, CT-based Colony Hardware Corporation recently announced that it has purchased the assets of Lake Worth, FL-based Allied Fastener & Tool for an undisclosed amount. Colony Hardware is a distributor of tools, equipment, fasteners, supplies and safety products — as well as rental and repair services — to commercial construction and industrial accounts. Its website states the company stocks more than 25,000 different products from more than 750 different manufacturers.
March
Singer Equities Acquires St. Louis-Based Foster Hose And Fittings: Houston-based Singer Equities has acquired Foster Hose and Fittings, headquartered in St. Louis, MO. The business was founded in 1928 and has been owned by Todd Sacco, Dale Schwartz and Rick Freeman since 2007. Todd Sacco, who has been active in the business, will remain as Sales and Marketing Manager and the business will continue operating under the Foster Hose and Fittings name. Foster Hose and Fittings is a distributor and fabricator of industrial hose, metal hose, silicone hose, hydraulic hose, fittings and expansion joints. Foster serves a diverse customer base in the food and beverage, pharmaceutical, chemical and industrial manufacturing markets, primarily in the Midwest region.
Fastener Master Distributor G.L. Huyett Acquires HANDI-CHECK From Illinois Tool Works: Minneapolis, MN-based G.L. Huyett, a supplier and master distributor of non-threaded fastener products, announced Thursday that it has purchased the HANDI-CHEK packaged goods business of ITW Shakeproof Industrial Products. The acquisition includes equipment, inventory, assets, and intellectual property - including the "HANDI-CHEK" brand name. G.L. Huyett plans to convert its existing packaged goods lines over to the HANDI-CHEK brand.
HD Supply Completes Acquisition Of A.H. Harris Construction: HD Supply announced that it has completed the previously announced $380 million acquisition of A.H. Harris Construction Supplies, a specialty construction distributor serving the Northeast, Mid- and South-Atlantic regions. A.H. Harris brings an experienced team of associates and extensive network of more than 50 locations from the Carolinas to New England and will operate under the HD Supply Construction & Industrial – White Cap business unit, which is a supplier of specialty hardware, tools, and materials.
Depke Gases And Welding Supplies Joins Weldstar Company In Merger: Aurora, IL-based Weldstar and Depke Gases and Welding Supplies have completed a merger. Danville, IL-based Depke continues its operations as a subsidiary of the Weldstar Company with Curt Towne continuing as Depke President. The merger between Depke and Weldstar will combine Weldstar’s four locations with Depke’s three locations. Towne will oversee Depke’s three central Illinois locations. He will also serve on the management team and Board of Directors of Weldstar.
EIS Merged Into Motion Industries As Electrical Specialties Group: For nearly the past 20 years, electrical/industrial products distributor EIS Inc. had been operating independently as a subsidiary of Genuine Parts Company, like fellow GPC subsidiary Motion Industries. Now, the two subsidiaries are one. Motion Industries announced that EIS has become the Electrical Specialties Group of Motion Industries, effective Jan. 2. EIS — which currently operates 39 branches and six fabrication facilities across North America — supplies process materials, production supplies, specialty wire & cable and value-added fabricated parts to electrical OEMs, motor repair shops and various assembly markets. Based in Atlanta, GA, EIS focuses on three main areas: Electrical & Electronic, Cable & Connectivity and Fabrication & Coating.
Crane Engineering Acquires Fellow Fluid Power Distributor RD Smith: Crane Engineering, a Kimberly, WI-based distributor of fluid technology solutions, announced that it has finalized the acquisition of RD Smith Company, Inc., a long-standing fluid processing equipment distributor based in Eau Claire, WI, serving Wisconsin, eastern Minnesota and northern Iowa. The deal adds more high-value manufacturers to Crane Engineering’s offerings, including Fristam Pumps, APV (a SPX FLOW brand) and Dixon Sanitary. It also extends Crane’s distribution capabilities into Minnesota and Iowa.
Tri-Flex Hose & Fitting Acquired By Industrial Supply Solutions Inc.: Salisbury, NC-based MRO products distributor Industrial Supply Solutions Inc. has acquired Winston-Salem, NC-based Tri-Flex Hose & Fitting Co. in a deal completed March 1. Terms were not disclosed. Founded in 1946, Industrial Supply Solutions is a full-line MRO distributor, offering products in various categories including abrasives, cutting tools, fluids, hand tools, machinery, material handling, measuring tools, plant and safety products and power tools. ISSI offers linear feet of heavy weight conveyer belts, along with pulleys, idlers, motors, belts, scrapers, reducers, bearings and more. Formerly known as Persingers Inc., ISSI's website shows 26 locations prior to the acquisition. Tri-Flex is a distributor of Gates hydraulic and industrial & specialty hose products, serving industrial and OEM customers in the Carolinas and Virginia.
Justrite Safety Group Acquires Eagle Manufacturing Co.: Des Plaines, IL-based Justrite Safety Group, a supplier of products for the safe management of flammable liquids and other hazardous materials, announced the acquisition of West Virginia-based Eagle Manufacturing Company, a manufacturer of safety cans, safety cabinets, spill containment products, poly drums and material handling products. Established in 1894 and based in Wellsburg, WV, Eagle brings a wide range of industrial safety and material handling products that cater to customers in a variety of sectors including construction, oil and gas, utilities, transportation, chemical and medical, to name a few.
Belt Power Acquires Fellow Georgia Distributor Regional Supply LLC: Atlanta, GA-based Belt Power LLC announced that it completed the acquisition of Marietta, GA-based Regional Supply, LLC for an undisclosed amount. Belt Power is a full-service distributor and fabricator of lightweight conveyor system components, including conveyor belts, equipment and accessories and rubber, hose and gasket products. Regional Supply is a lightweight conveyor belt distributor offering solutions for customers in the eastern U.S.
True Value To Sell 70% Of Company To Private Firm: True Value Company, one of the world's largest retailer-owned hardware cooperatives, and ACON Investments, a diversified international private equity investment firm, announced March 15 that they have entered into a definitive agreement to accelerate True Value’s long-term strategy to better support independent retailers. Under the terms of the agreement, ACON will make a strategic investment in the new True Value operating company. ACON’s investment will result in current True Value retailers having 70 percent of their invested capital, 100 percent of their promissory notes and the 2017 Patronage Dividend repaid following close. This represents approximately $229 million in returns and credits to current True Value retailers, who will also retain a 30 percent holding in the new True Value Company.
Wyatt Seal Boosts Southeast Footprint, Acquires The Seal Group At Hydradyne: Wyatt Seal Inc. of Columbia, SC has completed an agreement to acquire The Seal Group at Hydradyne, a distributor of sealing products in the southeastern U.S. Wyatt Seal will be adding the Seal Group’s three locations in Brookhaven, MS; Covington, LA; and Jackson, TN to its already existing locations in Columbia, SC and Charlotte, NC.
Montreal-Based Distributor Ficodis Acquires Cutting Tool Supplier Elite Tools: Ficodis Group has announced the acquisition of Elite Tools, a division of Les Scies Mercier Inc., founded in Lévis, Quebec in 1891 and one of the oldest manufacturer of cutting tools in North America. The move will help drive the continued the growth of Ficodis, a Quebec-based specialized industrial supply distributor, and the development of online sales strategy. Founded in 2010 and based in Montreal, Ficodis is a multi-specialized industrial supply distribution group providing services, technical expertise and products to manufacturing companies and SMEs. Its 12 points of sale in Quebec and Ontario are focused on four product families — tools, safety, cutting and power.
Sales Order Automation Provider Conexiom Privately Acquired: Vancouver-based Conexiom, a provider of cloud-based supply chain document automation software solutions, has announced that Luminate Capital Partners has invested in the company in support of its global growth strategy.
Purvis Industries Subsidiary KMEC Acquires PICOR: Dallas, TX-based Purvis Industries announced March 26 that KMEC Engineering & Conveying Systems, a wholly owned subsidiary of Purvis Industries, has acquired the assets, trademarks, brand rights, patents, and intellectual property of TWE dba PICOR. Johnson City, TN-based PICOR is a design and engineering company in bulk material truck and train precision loading systems. PICOR also produces telescoping chutes, mass flow gates, diverter gates, clamshell gates and slide gates. In conjunction, KMEC is also excited to welcome Tony Walker – the President and head engineer of PICOR – to the KMEC team. Tony and PICOR have developed some of the most innovative state-of-the-art solutions in the bulk material handling industry today.
