M&A Quarterly News In The Wholesale Distribution Industry Sector

M&A Quarterly News In The Wholesale Distribution Industry Sector

By Jeremiah Hughes

February 19, 2020

The report below gives a good overview of the first 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 Q4 2019 included 143 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector was announced in October when Platinum Equity Advisors, LLC acquired TruckPro LLC, a portfolio company of Harvest Partners LP, OCM Mezzanine Investments Group and Partners Group, for an undisclosed amount. Platinum Equity is a global private equity firm. TruckPro is a distributor of heavy-duty truck & trailer products and advanced repair services. Through a distribution network of more than 150 stores and advanced service shops, TruckPro delivers a comprehensive range of products to support commercial and government customer requirements in the areas of brake systems, electrical, engines, gear & drivetrain and more.

Industry Indicators

  • The average US retail price for diesel and regular gas, a major operating cost for distributor fleets in the wholesale sector, fell and rose 2.4% and 7.0%, respectively, in the week ending December 16, 2019, compared to the same week in 2018.
  • Total US manufacturers’ shipments, an indicator of demand for industries in the wholesale sector, rose 0.8% year-to-date in October 2019 compared to the same period in 2018.
  • Total US wholesale sales, a measure of the wholesale sector, fell 1.1% in October 2019 compared to the same period in 2018.

Posted by Jeremiah Hughes.

Read the Entire Wholesale Distribution 1st Quarter Newsletter Here