Exit and Growth Strategies for Middle Market Businesses

M&A News In The Wholesale Distribution Industry Sector

By Jeremiah Hughes | Jun 06, 2018

The report below gives a good overview of the second 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 Q1 2018 included 94 closed deals, according to data published by industry data tracker FactSet. One of the notable transactions of the quarter was announced in March when Patricia Industries AB, a subsidiary of Investor AB, acquired Sarnova, Inc., a portfolio company of Water Street Healthcare Partners LLC and Talisman Capital Management Inc, for US$903 million in cash. The transaction enhances Patricia Industries AB’s investment portfolio in medical services sector. Sarnova, distributes healthcare products to emergency care providers, hospitals, schools and universities, businesses and government sectors.

The B2B distribution of products has continually increased its online presence over the last few years.

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% and 10.2%, respectively, in the week ending March 12, 2018, compared to the same week in 2017.
  • Total US manufacturers’ shipments, an indicator of demand for industries in the wholesale sector, rose 8.0% year-to-date in January 2018 compared to the same period in 2017.
  • Total US wholesale sales, a measure of the wholesale sector, rose 10.0% in January 2018 compared to the same period in 2017.

Posted by Jeremiah Hughes.

Read the Entire Wholesale Distribution 2nd Quarter Newsletter Here

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