Exit and Growth Strategies for Middle Market Businesses

M&A News In The Wholesale Distribution Industry Sector

By Jeremiah Hughes | Jul 20, 2018

The report below gives a good overview of the third 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 122 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in June when Ryerson Holding Corp. acquired Central Steel & Wire Co for US$163.8 million in cash. The consideration for each Central Steel & Wire Co share is composed of US$616.32 in cash, plus US$50 in special dividends. Funding for the transaction was through Ryerson’s internal resources. Central Steel & Wire Co is located in Chicago and distributes ferrous and nonferrous metal products.

Distribution of electronic products rose sharply in the second quarter spurred by general growth in the economy and high consumer confidence.

Industry Indicators

  • The average US retail price for diesel and regular gas, a major operating cost for distributor fleets in the wholesale sector, rose 29.4% and 23%, respectively, in the week ending June 11, 2018, compared to the same week in 2017.
  • Total US manufacturers’ shipments, an indicator of demand for industries in the wholesale sector, rose 7.1% year-to-date in April 2018 compared to the same period in 2017.
  • US tourism spending on all tourism goods and services, which impacts the wholesale sector revenues, increased 5.4% in the third quarter of 2017 compared to the same period in 2016.
  • Total US wholesale sales, a measure of the wholesale sector, rose 10.6% in April 2018 compared to the same period in 2017.

Posted by Jeremiah Hughes.

Read the Entire Wholesale Distribution 3rd Quarter Newsletter Here

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