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Exit and Growth Strategies for Middle Market Businesses

M&A News In The Wholesale Distribution Industry Sector

By Jeremiah Hughes | Oct 23, 2018

The report below gives a good overview of the fourth quarter M&A activity in the Wholesale Distribution Industry Sector. M&A activity for North American based target companies in the Wholesale and Distribution sector for Q2 2018 included 112 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in September when DCC Technology Ltd, a subsidiary of DCC Plc, acquired JAM Industries Ltd for CAD220.5 million (US$170 million). The acquisition expands DCC Technology’s service offering and business presence in Canada. JAM Industries is located in Baie-D’Urfé, Québec, Canada and distributes musical instruments and accessories. It had revenue of approximately CAD418.8 million (US$323 million) and has 570 employees in April 30, 2018.

Despite the current administration’s renegotiation of NAFTA, exports and imports between the United States and Canada have climbed relatively steadily over the past three decades.

Industry Indicators

  • The average US retail price for diesel and regular gas, a major operating cost for distributor fleets in the wholesale sector, rose 16.3% and 5.5%, respectively, in the week ending September 10, 2018, compared to the same week in 2017.
  • Total US manufacturers’ shipments, an indicator of demand for industries in the wholesale sector, rose 7.5% year-to-date in July 2018 compared to the same period in 2017.
  • Total US wholesale sales, a measure of the wholesale sector, rose 12.9% in July 2018 compared to the same period in 2017.

Posted by Jeremiah Hughes.

Read the Entire Wholesale Distribution 4th Quarter Newsletter Here


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