Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Wholesale Distribution Industry Sector

By Jeremiah Hughes | Aug 05, 2019

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 Distribution sector for Q2 2019 included 149 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in May when Tailwind Management LP acquired Ring & Pinion Service, Inc., also doing business as RANDY’S Worldwide Automotive, Inc. and a portfolio company of PNC Erieview Capital, Linsalata Capital Partners, Inc. and the private equity arm of Barings LLC. The deal was reportedly valued at US$187 million. The deal reinforces RANDY’s growth and expansion strategy. Ring & Pinion Service is located in Everett, Washington and distributes automotive parts.

Industry Indicators

  • The average US retail price for diesel and regular gas, a major operating cost for distributor fleets in the wholesale sector, fell 5.8% and 3.0%, respectively, in the week ending July 15, 2019, compared to the same week in 2018.
  • Total US manufacturers’ shipments, an indicator of demand for industries in the wholesale sector, rose 2.4% year-to-date in May 2019 compared to the same period in 2018.
  • Total US wholesale sales, a measure of the wholesale sector, dropped 0.1% in May 2019 compared to the same period in 2018.

Posted by Jeremiah Hughes.

Read the Entire Wholesale Distribution 3rd Quarter Newsletter Here

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