The BGL Industrials Insider -- Industrial Distribution M&A Remains Active Amid Market Uncertainty

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Aug 15, 2022, 16:18 ET

CLEVELAND, Aug. 15, 2022 /PRNewswire/ -- The Industrial Distribution M&A market continues to see healthy deal flow despite current market uncertainty, according to an industry report released by the Industrial Distribution investment banking team from Brown Gibbons Lang & Company (BGL).

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The Industrial Distribution M&A market continues to see healthy deal flow despite current market uncertainty, according to an industry report released by the Industrial Distribution investment banking team from Brown Gibbons Lang & Company (BGL).

In the report, BGL examines the current state of the M&A market as well as the overall market and near-term outlook. Distributors are navigating a choppy environment. Supply chains and sourcing remain impacted yet have improved, and inflation and pricing are top concerns. Labor constraints, which have spurred automation and efficiency, are easing. Distributors that have exhibited resilience are benefiting from portfolio and balance sheet strength to weather any volatility.

Brisk deal flow is indicative of broad investor interest across distribution subsectors and active participation from strategic and financial buyers.

Strategic buyers cite active pipelines and are actively pursuing M&A to diversify portfolios and expand product, customer, and geographic markets. Motion Industries (Kaman Distribution Group) and Rexel (Mayer Electric) and are among the strategic buyers to recently announce large transactions.
Nautic Partners' acquisition of Vallen Distribution was a headliner in private equity transaction activity, illustrative of continuing interest in deploying dry powder into well-run distribution businesses as growth platforms.
Serial acquirers are continuing their buying sprees, with Core & Main, Winsupply, Ferguson, and SRS Distribution among the buyers aggressively seeking acquisitive growth.

About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company (BGL) is a leading independent investment bank and financial advisory firm focused on the global middle market. The firm advises private and public corporations and private equity groups on mergers and acquisitions, capital markets, financial restructurings, business valuations and opinions, and other strategic matters. BGL has investment banking offices in Chicago, Cleveland, Los Angeles, and New York, and real estate offices in Chicago, Cleveland, and San Antonio. The firm is also a founding member of Global M&A Partners, enabling BGL to service clients in more than 30 countries around the world. Securities transactions are conducted through Brown, Gibbons, Lang & Company Securities, LLC, an affiliate of Brown Gibbons Lang & Company LLC and a registered broker-dealer and member of FINRA and SIPC. For more information, please visit www.bglco.com