Value-Added Distribution - Coverage Report Q1 2018

Published on: 04/04/2018

Following multiple years of record setting merger and acquisition (M&A) levels in the Value-Added Distribution industry, activity remained robust during 2017 as domestic activity surpassed 100 deals for the fourth consecutive year. Reduced activity volume relative to 2016 can be attributed to meticulous vetting processes and buyers’ preference for quality companies with strong cultures and complementary offerings. In what proved to be a significant years for private equity groups (PEGs), financial buyer accounted for 36.4% of deals in 2017 compared to just 19.2% in 2016, which is reflective of the trend in across the middle market. PEG activity was highlighted by Clayton Dubilier & Rice’s acquisition of HD Supply Waterworks for $2.4 billion in June, in what was ultimately the most significant industry deal during the year.

Key Contacts

Todd McMahon

Head of Investment Banking

Peter Asiaf

Managing Director