Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Wholesale Distribution Industry Sector

By Jeremiah Hughes | May 03, 2019

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 2019 included 141 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in March when Square Chain Corp acquired a 55% majority stake in Caravel Group, LLC from M Line Holdings, Inc. for an undisclosed amount in stock. The stock being issued to M Line Holdings for these companies gives M Line a controlling interest in Square Chain Corp. Caravel Group is located in Fremont, California brands and distributes beverages.

Industry Indicators

  • The average US retail price for diesel and regular gas, a major operating cost for distributor fleets in the wholesale sector, rose 0.5% and 2.9%, respectively, in the week ending April 15, 2019, compared to the same week in 2018.
  • Total US manufacturers’ shipments, an indicator of demand for industries in the wholesale sector, rose 3.0% year-to-date in February 2019 compared to the same period in 2018.
  • Total US wholesale sales, a measure of the wholesale sector, rose 1.9% in February 2019 compared to the same period in 2018.

Posted by Jeremiah Hughes.

Read the Entire Wholesale Distribution 2nd Quarter Newsletter Here

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