March M&A Roundup: Activity Slows After Blistering Start to 2023

After a strong start to 2023 — including January, which saw nearly 50 mergers and acquisitions — the pace of M&A deals among distributors and manufacturers slowed in March. For the month, MDM reported just 19 deals. It’s the lowest amount since May 2022, which also featured 19 announcements reported by MDM. (We reported 29 deals in February.) Is the dip in activity an aberration, or is it the beginning of slowdown in M&A that some have predicted? That remains to be seen, as the calendar turns to the second quarter of 2023.

Still, there were several major deals that happened in March. On March 15, the federal government approved Canadian Pacific’s $31 billion acquisition of Kansas City Southern. It was the first major railroad merger in more than two decades. One day earlier, specialty chemical and food ingredient distributor Univar Solutions announced it had agreed to be acquired by New York-based private equity firm Apollo for more than $8 billion. Distribution M&A regulars Imperial Dade and Rexel also announced deals during the month. Below, read about all the M&A activity that MDM reported on in March.

March M&A:

These are the M&A announcements — primarily involving distributors, but also manufacturers that sell through the channel — that MDM covered during March 2023 (click the headline for more details):

• Building Controls & Solutions Acquires Minvalco — Dallas-based commercial HVAC solutions company Building Controls & Solutions announced it has acquired Minvalco, a provider of building automation systems and components based in Minneapolis.
• Coburn Supply Acquires Bay Electric in Texas — Beaumont, Texas-based Coburn Supply Company, a distributor of HVAC, electrical and plumbing products, announced March 16 its acquisition of Bay Electric Supply.
• Colony Hardware Acquires New South Construction Supply — Orange, Connecticut-based industrial distributor Colony Hardware Corporation announced March 1 its acquisition of New South Construction Supply, a distributor of construction supplies and building materials based in Greenville, South Carolina.
• Dutch Company Signify Acquires Intelligent Lighting Controls — Dutch lighting company Signify announced its acquisition of Intelligent Lighting Controls, Inc., a manufacturer of wired control systems based in Minnesota.
• EFC Int’l Acquires Fellow Fastener Distributor ISC in St. Louis — Fastener distributor EFC International announced March 2 its acquisition of Inventory Sales Company (ISC), a fellow fastener distributor also headquartered in St. Louis.
• Imperial Dade Acquires Trio of Distributors in Canada — JanSan and foodservice packaging distributor Imperial Dade separately announced the acquisitions of three companies in Canada: Solutions Sherby, Servicorp Industrial Supplies and Action Paper & Packaging.
• Japanese Manufacturer Nidec Acquires Midori Precisions — Nidec Corporation, a Japanese manufacturer and distributor of electric motors, announced March 15 that its subsidiary, Nidec Copal Electronics, has acquired Midori Precisions Co.
• Major U.S. Freight Rail Merger Approved After Two-Year Review — Federal regulators approved Canadian Pacific’s $31 billion acquisition of Kansas City Southern on March 15, representing the first major railroad merger in over 20 years.
• Precision Aviation Group Acquires MRO Services Provider PTB — Atlanta-based aviation MRO parts distributor Precision Aviation Group (PAG) its acquisition of PTB Group, a fellow distributor of aviation MRO and supply chain services.
• Precision Products Group Acquires Saylor Technical Products — Private equity firm Auxo Investment Partners announced that its client Precision Products Group (PPG) — an Indianapolis-based manufacturer of precision-machined components — has acquired of Saylor Technical Products.
• Reece Group Acquires HVAC Distributor Barsco in Texas — Victoria, Australia-based Reece Group — a distributor of plumbing, waterworks and HVACR products — has acquired Barsco Inc., a Dallas-based distributor of refrigeration and HVAC equipment, parts and supplies throughout Texas.
• RelaDyne Acquires Lubricants & Fuel Distributor in Guatemala — Cincinnati, Ohio-based lubricants distributor RelaDyne announced that it has acquired Grupo Lucalza, a distributor of lubricants and fuel in Latin America, including Lucalza’s subsidiaries Imporfil, located in Mexico, and Texpetrol, located in Guatemala.
• Rexel USA Acquires Teche Electric Supply in Louisiana — Electrical distributor Rexel USA announced that it has acquired Teche Electric Supply, LLC, which is headquartered in Lafayette, Louisiana.
• Security and A/V Distributor Resideo Acquires BTX Technologies — Scottsdale, Arizona-based security and audio-visual products distributor Resideo Technologies announced March 9 its acquisition of BTX Technologies, a fellow audio-visual products distributor in Hawthorne, New York.
• Shorehill’s Ascent Lifting Makes 1st Acquisition: Cargo Control USA — Ridgway, Pennsylvania-based Ascent Lifting, Inc. — a distributor, wholesaler and fabricator of lifting and rigging products — announced it has completed its acquisition of Cargo Control USA, a distributor of cargo control products and accessories based in Sanford, North Carolina.
• SRS Distribution Acquires Exteriors Inc. in Kentucky — Texas-based roofing and building supplies distributor SRS Distribution said March 3 that it has acquired Exteriors Inc., a Bowling Green, Kentucky-based distributor of roofing, siding, windows, doors and other similar products.
• Univar Solutions Going Private in $8.1B Deal — Global specialty chemical and food ingredient distributor Univar Solutions announced March 14 it has agreed to be acquired by New York-based private equity firm Apollo.
• The Master Group Acquires Refrigeration Sales Corp. — Novacap Management Inc. and Rotunda Capital Parters both announced March 2 that they have reached an agreement for Novacap client The Master Group — a Canadian-based distributor of HVACR products — to acquire Rotunda client Refrigeration Sales Corporation (RSC).
• Whelan Machine & Tool Acquired by Holding Firm Ajax Defense — Louisville, Kentucky-based Whelan Machine & Tool announced March 14 that it has been sold to holding company Ajax Defense.

Check out our February 2023 M&A recap here.

Check out our January 2023 M&A recap here.

Check out our 2022 full-year M&A recap here.

Looking for M&A thought leadership? In a series of three MDM Premium articles, Executive Editor Mike Hockett distilled key takeaways and commentary from the final session of MDM’s 2023 Virtual M&A Summit, which was held Feb. 22-23. One published March 8 focused on build-buy-invest tactics ; one published March 20 focused on honest communication; and one published on March 27 focused on valuation factors of emotion, risk and retirement.

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.

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