The Largest Deal Was US$4.4 Billion. Distribution Retail Channels In The US Household Now Seeing A Wave Of M&A In 2021.
The Largest Deal Was US$4.4 Billion. Distribution Retail Channels In The US Household Now Seeing A Wave Of M&A In 2021
Various accounts suggest that in the second half of 2021, an explosion of M&A will begin in the home-furnishing industry globally, particularly in the distribution retail channels. M&A activity in the wholesale distribution has accelerated and continues the recent trend of a large number of deals in the building materials and construction verticals.
In the first half of 2021, M&A in the US leisure and retail sector reached US$41.7 billion, more than four times the amount seen in the first half of 2020. Deal volume increased 59% year-on-year to 154. Cash-flow-rich private equity funds are moving more frequently and increasing their deal-making in construction materials. The share increased from 11% in 2000-2007 to 22% in 2014-2019. Private equity deals have also become larger, accounting for over 40% of the industry’s total deal value in 2018 and 2019. Large acquisitions include Lone Star’s acquisition of BASF SE’s construction chemicals business for €3 billion and Blackstone’s acquisition of CRH’s European distribution business for €1.6 billion. The former had acquired Italgard, the world’s largest glazier, in 2017 and announced the sale of the company this year. Distribution Retail Channels
|1||Fischer Process Industries acquires HE Danby.||Fischer Process Industries (FPD), a fluid sub-refiner in Loveland, Ohio, USA, announces the acquisition of Indiana-based distributor HE Danby Co. Inc.|
|2||Wynnchurch Capital acquires Trimlite.||Wynnchurch Capital acquires Trimlite, a manufacturer and distributor of residential doors and related door products.|
|3||L&W Supply completes the acquisition of Builders First Source’s Eastern Gypsum Assets.||Chicago-based L&W Supply Corp. completes the acquisition of the assets of US-Japan Eastern Gypsum distribution Builders First Source Inc.|
|4||RBC Bearings acquires ABB’s Dodge Isomotive Power Transmission business.||US-based RBC Bearings Inc. agreed to acquire the mechanical power transmission division of Asea Brown Boveri Ltd. (ABB) for US$2.9 billion.|
|5||PE-backed JGB Enterprises expands into Canada with the acquisition of JGB Enterprises Inc.||US hose and fluid distributor JGB Enterprises, backed by private equity firm HCI Equity Panners – has completed its first add-on acquisition and expanded into the Toronto-industrial, oil, and mining sectors.|
|6||BlackHawk Industrial acquires a Florida-based fastener distributor.||Black Hawk industrial of Tulsa, Oklahoma, USA, acquires Reliance Supply, an industrial fastener distributor based in Jacksonville, Florida.|
|7||Carlisle Cos. acquires building maintenance systems supplier.||Carlisle Cos. Inc. acquires building maintenance systems supplier Henry Co. for US$1.6 billion.|
|8||Ingersoll-Rand confirms all-cash offer to acquire SPX Flow.||Davidson, N.C.-based Ingersoll-Rand Inc. confirmed Monday that it made an all-cash, non-binding offer to the board of directors of SPX How Inc. on June 10. to acquire SPX Flow at a price of $85 per share.|
|9||Solve Industrial Motion Group acquired by Audax Private Equity||Solve Industrial Motion Group, a Charlotte, N.C.-based uranium-bearing manufacturer, has been acquired by Audax Private Equity.|
|10||EnVista acquires HCM Systems to expand automation capabilities.||EnVista, an Indianapolis-based software, consulting, managed services, and automation solutions company whose customer base includes distributors, announced the acquisition of Chicago-based systems integrator HCM Systems.|
|11||SRS acquires three distributor operators based in Chicago.||Building materials distributor SRS Disliibulbn lnc. of McKinney, Texas, has acquired Acorn Roofing Supply. Prairie State Exterior Products and 55 Building Supply. as well as distributors of residential and electrical roofing, siding, and other related products.|
|12||Stellar Industrial Supply acquires Robert G. Brewton.||Tacoma, Washington-based MRQ, distributor of Mtollar Industrial Supply, has entered into an agreement to acquire Robert G. Brewton (RG Brewton),|
|13||Charles D. Jones Co acquires Air Conditioning Utilities.||North Kansas City, Missouri-based HVACR distributor Charles D. Jones Co. announced the acquisition of Air Conditioning Utilities of Omaha, Nebraska.|
|14||Core & Main acquires Pacific Pipe.||St. Louis, Missouri-based Core & Main LP announced that it has agreed to acquire Pacific Pipe Company Inc. The deal is the 14th since the IPO.|
|15||Builders First Source to sell its plaster distributor business in the eastern US.||Dallas-based Builders First Source Inc. announced that it has agreed to sell its independent Eastern U.S.-based gypsum distribution business to L&W Supply.|
|16||Winsupply acquires Simon’s Supply, a plumbing and heating distributor.||Dayton, Ohio-based Winsupply Inc. announced that it has acquired plumbing and heating distributor Simons Supply Co. Inc.|
|17||US LBM completes the acquisition of American Construction Source.||Illinois-based specialty building materials distributor US LBM Holdings LLC has completed the acquisition of American Construction Source from Angeles Equity Partners LLC and Clearlake Capital Group LP.|
|18||US LBM acquires Arizona distributor.||Specialty construction materials distributor US LBM Holdings LLC has acquired Home Center Supply, a supplier of specialty construction materials based in central Arizona.|
|19||GMS completes the acquisition of Westside.||Tucker, Georgia-based GMS Inc. acquires Westside Building Materials for $135 million.|
|20||US LBM acquires Georgia distributor.||Buffalo Grove, Illinois-based specialty building materials distributor US LBM Holdings LLC acquired Brand Vaughan Lumber Co. a Georgia-based distributor with five locations in the state.|
|21||DSG expands into Michigan with the acquisition of an HVAC distributor.||Dakota Supply Group, based in Portsmouth, Minnesota, announced the acquisition of Calvertey Supply Co.|
|1||Tereva acquires J2A Distrib, an independent French bathroom distributor, and ADV, a sanitary heating company.||Tereva has acquired the French independent subcontractor J2A Distfib’ and the French sanitary heating company ADV. ADV Artisans du Velay is part of the Algorel Group and JJ5 will have a turnover of over €8 million in 2021. J2A Distrib’ is a company managed by Anthony De Rosa, previously part of the Algcrel Group, with a turnover of €1.8 million in 2020.|
|2||Pompac Developpement (Espace Aubade) acquires||Pompac Developpement (Cspace Aubade) acquires the Nicodeme brand and Guiraud SA, an independent distributor of bathroom tiles.|
|3||Nicodeme brand and Guiraud SA, an independent distributor of bathroom tiles.||GC Guppe, a major European distributor, acquires a majority stake in the Belgian brand Facq. The former is based in Germany and owns Espace Aubade in France.|
|Kitchen News incomplete statistics.|
Meanwhile, companies such as LBM Holdings, a major US building materials distributor, continued to capture the market, with a maximum of three acquisitions in a single month. As the industry continues to consolidate, gypsum wallboard and ceiling veneer distributor L&W Supply, roofing distributor SRS Distribution Inc., US Top 500 building materials supplier Builders First Source Inc., and wallboard and ceiling distributor GMS Inc. have also grown through acquisitions.
Large distributors in other categories have also made moves, including Winsupply, Core & Main, BlackHawkIndustrial, and Dakota Supply Group.
The largest recent retail deal in the US was the $4.4 billion acquisition and privatization of listed home improvement retailer Michaels by private equity fund Apollo, which also plans to enhance the company’s omnichannel sales capabilities. Distribution Retail Channels
The second-largest deal was also a privatized acquisition of a listed home furnishings company. In a $4.2 billion deal, private equity firm Hellman & Friedman also took At Home Group, a publicly-traded home décor retailer, private.
The third-largest deal was for a home design company. Blackstone acquired Interior Logic Group, a home design software company, for $1.6 billion.
And late last year already saw the biggest acquisition in 14 years, with Home Depot’s $8.7 billion purchase of HD Supply, which it had sold in 2007. The $8.7 billion acquisition pushed North American building materials deals with a record high of $15.2 billion. According to data compiled by Bloomberg, the previous record high of US$10.27 billion was set in 2007 before the US real estate crash.