September M&A Roundup: Month Starts and Ends with Flurry

September was another month jam-packed with merger & acquisition news for distributors of industrial, construction and commercial products. We at MDM posted news of 25 different deals announced during the month, following 26 in August. Economic red flags and a presumed pending slowdown in industrial demand doesn’t appear to have impacted the pace of M&A activity for distributors — at least not yet.

September started with an avalanche of deals announced just before Labor Day and then slowed to a trickle for the next few weeks before closing out the month with another flurry of news.

The activity was highlighted by Jansan, foodservice and packaging distributor Envoy Solutions announcing three deals during September, and there were two for Sonepar USA. Sonepar, bearings maker Timken and electrical distributor Wesco each announced major deals that look to add at least $200 million in annual revenue.

Listed in chronological order, here are the M&A announcements — primarily involving distributors, but also manufacturers that sell through the channel — MDM covered during September (click the headline for more details):

• SBP Holdings Acquires Rubber & Hose Distributor in NC: SBP has added Catawba Industrial Rubber Company and Coastal Hose & Rubber, which operate from Charlotte and Wilmington, North Carolina.
• Dakota Supply Group Acquires Western Steel and Plumbing: With locations in Bismarck and Minot, North Dakota, Western Steel and Plumbing has been a distributor of plumbing and HVAC products since 1949.
• New Yorker Electronics Acquires Switches Unlimited: It’s the second acquisition in the past year for New Yorker Electronics, which added Texas-based Omni-Pro Electronics last October.
• Alro Steel to Acquire Access Metals: Baltimore-based Access Metals is a service center specializing in small orders serving customers in the manufacturing, machining and fabricating industries.
• Builders FirstSource Acquires Trussway: Trussway is a Houston-based manufacturer of floor trusses, roof trusses and pre-assembled door and window openings.
• DXP Enterprises Acquires Sullivan Environmental Technologies: Sullivan is a Kentucky-based manufacturer of pumps, valves and process equipment that primarily serves the municipal and industrial water and wastewater industries of Indiana, Kentucky and Ohio.
• Sonepar’s World Electric to Acquire Advance Electrical: Founded in 1999, World Electric has expanded to 16 locations throughout Florida and Georgia.
• Motion & Control Enterprises Acquires Quest Engineering: It marks the second acquisition in 2022 for MCE and its sixth since 2021.
• Envoy Solutions Acquires Knight Marketing, H.T. Berry Company: Envoy expanded its footprint in the Northeast U.S. with two acquisitions in early September.
• Ryerson Holding Acquires Howard Precision Metals: Howard Precision Metals has been a distributor of aluminum since 1928.
• Timken Makes Another Splash in Europe, Acquires GGB Bearing: It adds approximately $200 million in revenue and 900 employees to Timken.
• Sandvik Adds PCD Tools Maker as Summer Acquisition Spree Continues: It marks the fifth tooling acquisition the company has announced since the start of July.
• Kodiak Building Partners Acquires Western Interior Supply: Kodiak was the No. 10 on MDM’s 2022 Top Building Materials/Construction Distributor list.
• Imperial Dade Acquires International Sales & Marketing in Puerto Rico: ISM is a distributor of foodservice and janitorial sanitation products
• OmniCable Acquires Bay Wire: Hayward, California-based Bay Wire is a distributor of copper building wire and other wire and cable products.
• Wesco to Buy IT Distributor Rahi for $217M: Rahi is a global information technology solutions provider with more than 40 offices and 900 employees across 25 countries.
• Core & Main to Acquire Fire Protection Distributor in Hawaii: It marks the sixth acquisition of the year for Core & Main.
• TricorBraun to Acquire Mark’s Barrel Company: The transaction for Utah-based MBC is expected to close in October.
• Crosby Group, KITO Corp. Gain Merger Clearance: The Crosby Group announced the deal back in May.
• Envoy Solutions to Acquire Jansan Distributor in Tampa: It will be Envoy’s 11th bolt-on so far this year.
• Sonepar USA to Acquire Electrical Distributors PEPCO, Basin-River: PEPCO adds 10 branch locations and an expected $300 million in 2022 revenue to Sonepar, while Basin River adds a single branch.
• Holland Pump Makes Acquisitions in Pennsylvania & Maryland: It adds three branch locations to Florida-based Holland, giving it 13 overall.
• ProSource Supply Sold from One PE Firm to Another: ProSource operates seven plumbing, lighting and residential hardware showrooms across North and South Carolina.
• Victaulic Acquires Metal Fabrication Supplier in Tennessee: Adding Tennessee Metal Fabricating Corp. supports Victualic’s growth in the infrastructure market and increases its capacity for large-diameter piping.

Of course, this list doesn’t cover every deal announced this past month, as there’s always likely to be ones that weren’t on our radar or that we just weren’t alerted to. If we missed one, please let us know at editor@mdm.com.

Check out our August M&A Roundup here

Check out our July M&A Roundup here

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