November M&A Roundup: Deal Activity Slows as 2022 Winds Down

The pace of M&A activity among industrial distributors and manufacturers slowed significantly during the latter half of November, as MDM reported the fewest number of monthly deals announced since May of this year (19). In all, MDM’s monthly roundup accounted for 21 deals in November, following a steady streak that stretched from June (26) through October (28). Of the 21 M&A announcements from November, only four took place after Nov. 10.

With a shortened Thanksgiving week ushering in the holiday season, we expected to see a slowdown toward the end of the month. A more conservative approach to M&A also might have been prompted by questions surrounding the recent midterm elections or concerns over a predicted economic slowdown. Either way, a downtick was not all that surprising.

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November M&A

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

• Applied Industrial Technologies Acquires Automation Inc. — Applied Industrial Technologies continued its investment in the automation industry by announcing its acquisition of Minneapolis-based Automation Inc.
• Beacon Acquires Coastal Construction in Florida, Adds 2 Other Branches and Launches Mobile App — Roofing and building products distributor Beacon announced its acquisition of Jacksonville, Florida-based Coastal Construction Products from distribution-focused private equity firm Supply Chain Equity Partners, along with current and former members of Coastal’s management.
• BlackHawk Acquires Ohio-Based L.A. Tool — Tulsa, Oklahoma-based metalworking and MROP supplies distributor BlackHawk acquired Akron-based L.A. Tool & Supply Co.
• Bostwick-Braun Acquires Mill Supplies Inc. — Toledo, Ohio-based industrial and commercial distributor Bostwick-Braun Company announced its acquisition of Mill Supplies, Inc. by the company’s Industrial Business Division.
• CED Grows in Chicagoland, Acquires Amperage — Consolidated Electrical Distributors — No. 5 on MDM’s 2022 Top Electrical Distributors List — acquired Amperage Electrical Supply.
• Core & Main Acquires Lanier Municipal Supply — St. Louis-based wastewater, storm drainage and fire protection distributor Core & Main agreed to acquire the assets of Lakeland, Georgia-based Lanier Municipal Supply Co. Inc., a distributor of water, wastewater, storm drainage, agricultural and irrigation products.
• Crescent Electric to Acquire Georgia Distributor Lowe — East Dubuque, Illinois-based Crescent Electric Supply Company on closed on a deal to acquire Georgia-based Lowe Electric Supply Co.
• Endries Acquires Alliance Nut & Bolt — Wisconsin-based fastener distributor Endries International Inc. announced its acquisition of Alliance Nut & Bolt, LLC.
• Envoy Solutions Acquires Assets of California-Based Surtec — Illinois-based jan-san, foodservice and packaging supplies distributor Envoy Solutions announced its acquisition of Surtec Inc.
• Envoy Solutions Acquires United Packaging in Northeast — Envoy Solutions acquired Bristol, Pennsylvania-based United Packaging for an undisclosed amount.
• Fortna and MHS Global to Retain FORTNA Brand Following Merger — The merger of material-handling automation distributor MHS Global and warehouse distribution solutions provider Fortna has resulted in a single combined entity that will be known as FORTNA, the companies announced.
• Greif to Acquire Lee Container for $300M — Delaware, Ohio-based industrial packaging producer Greif, Inc. agreed to acquire Lee Container Corporation, Inc. — a manufacturer of jerrycans and other barrier and conventional blow-molded containers — for $300 million.
• Hanes Geo Components to Acquire Fellow Geotextile Distributor Nilex — Geosynthetics, erosion and sediment control materials distributor Hanes Geo Components reached an agreement to acquire the majority of business and assets of Nilex Inc. and its wholly owned subsidiary Nilex USA Inc.
• Lowe’s to Sell Canadian Retail Unit to Sycamore Partners —Home improvement retailer Lowe’s Companies, Inc. agreed to sell its Canadian retail business to Sycamore partners — a private equity firm specializing in retail, consumer and distribution-related investments — for $400 million in cash, and performance-based deferred consideration.
• McKinsey Acquires Supply Chain Firm SCM Connections — Global research and consulting firm McKinsey & Company acquired supply chain firm SCM Connections in a move that McKinsey said will “strengthen our expertise in supply-chain strategy, value creation, and growth.”
• Motion & Control Enterprises Acquires Nightwine Valves & Actuation — Pennsylvania-based industrial distributor Motion & Control Enterprises announced its acquisition of Nightwine Valves & Actuation, Inc.
• New South Construction Acquires Florida-Based Malone Steel — Greenville, South Carolina-based New South Construction Supply has acquired Malone Steel Corporation, a company based in Ponte Vedra Beach, Florida.
• PCX Aerosystems Acquires Timken Aerospace Drive Systems — Aerospace components manufacturer PCX Aerosystems announced its acquisition of Manchester, Connecticut-based Timken Aerospace Drive Systems.
• SBP Holdings Acquires Florida-Based Central Hydraulics — Houston-based industrial distributor SBP Holdings announced its acquisition of Central Hydraulics Inc., which operates five locations across Florida.
• SureWerx Acquires Massachusetts-Based Oberon Company — Safety, tool and equipment products distributor SureWerx announced Oct. 31 its acquisition of Massachusetts-based safety equipment distributor Oberon Company.
• US LBM Acquires Truss Suppliers in Georgia, North Carolina — Building materials distributor US LBM acquired Atlanta-area-based Georgia Truss and Fayetteville, North Carolina-based Comtech.

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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